Ship Registration in Malta may be done for all types of vessels, with low company formation and ship registration costs and with a minimum registration period. From pleasure yachts to oil rigs, these may all be registered in Malta in the name of legally constituted corporate bodies of entities. There are also no restrictions on the nationality of the ship owner, nor trading or age restrictions.

There are also a number of tax and VAT exemption for certain vessels as seen below.

Main advantages of registering your vessel under a Malta flag:

· No restrictions or taxation on the sale and mortgaging of Maltese registered ships;

· Complete exemption from Maltese income tax on the income that is derived from shipping activities of Maltese vessels of 1,000 net tons and over;

· Exemption from duty on documents on the sale or transfer of a Maltese vessel of 1,000 tons and over;

· Exemption from duty on documents on the allotment or transfer of shares in Maltese companies;

· No restrictions on the nationality of the master, officers and crew serving on.

VAT scheme for Yacht Finance Leasing

The recent VAT Scheme for Yacht Finance Leasing has led to the continuing growth of the international maritime service being offered in Malta.

The VAT rate on the supply of leasing services can be reduced significantly lower than the standard VAT rate of 18%, depending on the type of vessel and its length which will specify the deemed use in the EU.

The following table sets out the relative percentage points according to the type of yacht applied by the VAT department in relation to the above scheme:

Malta is considered as an ideal international maritime service centre and has become a well-established, reputable, open ship register. The Malta flag itself is still relatively young; it has grown steadily since it opened in the early 1970s, to become the second largest flag fleet in Europe.

Ship Registration in Malta may be done for all types of vessels, with low company formation and ship registration costs and with a minimum registration period. From pleasure yachts to oil rigs, these may all be registered in Malta in the name of legally constituted corporate bodies of entities. There are also no restrictions on the nationality of the ship owner, nor trading or age restrictions.

There are also a number of tax and VAT exemption for certain vessels as seen below.

Main advantages of registering your vessel under a Malta flag:

• No restrictions or taxation on the sale and mortgaging of Maltese registered ships;
• Complete exemption from Maltese income tax on the income that is derived from shipping activities of Maltese vessels of 1,000 net tons and over;
• Exemption from duty on documents on the sale or transfer of a Maltese vessel of 1,000 tons and over;
• Exemption from duty on documents on the allotment or transfer of shares in Maltese companies;
• No restrictions on the nationality of the master, officers and crew serving on.

VAT scheme for Yacht Finance Leasing

The recent VAT Scheme for Yacht Finance Leasing has led to the continuing growth of the international maritime service being offered in Malta.

The VAT rate on the supply of leasing services can be reduced significantly lower than the standard VAT rate of 18%, depending on the type of vessel and its length which will specify the deemed use in the EU.

The following table sets out the relative percentage points according to the type of yacht applied by the VAT department in relation to the above scheme:

Yachts over 24 metres in length

30%

5.4%

Sailing yachts between 20.01 and 24 metres in length

40%

7.2%

Motor yachts between 16.01 and 24 metres in length

40%

7.2%

Sailing yachts between 10.01 and 20 metres in length

50%

9%

Motor yachts between 12.01 and 16 metres in length

50%

9%

Sailing yachts up to 10 metres in length

60%

10.8%

Motor yachts between 7.51 to 12 metres in length

(if registered in the commercial register)

60%

10.8%

Motor yachts up to 7.51 metres in length

(if registered in the commercial register)

90%

16.2
%