Malta yachting business hasn’t been sluggish; it is one of the world’s most popular jurisdictions while the largest flag registry within the EU. Nevertheless, there seems to have already been a surge in interest recently that is keeping those of us within the industry also busier than usual. Where is this coming from?
Professionals knowledgeable about yachting will be aware of already the stand-alone benefits of Malta as a yacht registering jurisdiction. Its geographical location is perfect, particularly for VAT importation into the EU that will be probably one of the most typical demands that individuals assist people who have. It also supplies a helpful 18 month importation that is temporary of for personal use. Appealing VAT incentives are available for yacht leasing schemes, and the jurisdiction also has a tremendously strong corporate structuring regime for yachts that are going to be owned by way of a business. On top of all that, it’s a well-respected and jurisdiction that is stable being a sovereign state within the EU.
Yet those advantages alone cannot account for the recent surge – there’s been no substantial change in the area offering that would correlate utilizing the surge in interest. It must therefore be down to external facets. One possibility is that it is simply representative of a boost in the amount of new yachts being launched but, whilst the industry does seem to be slowly picking up after the post-2008 plunge, this will be unlikely to account for the degree of increased interest unless Malta is attracting a more substantial part of international business than it offers been previously.
There is some conjecture within the industry that it could be right down to a move far from jurisdictions connected with increased aggressive tax preparation. If this really is indeed the case, Malta’s EU account may be owners that are attracting advisors for more than just the convenience it offers whenever cruising the Mediterranean. The theory rests on the increasing pressure on both individuals and companies to be more transparent in their international tax planning, which effect on structures for luxury assets such as yachts. Its a stylish theory, it has not been backed up by any rigorous research of which we are aware although I must stress.
Whatever the good reason, how might this surge in interest affect on financial advisors and their clients? There is really a possibility that resources may lag behind interest in the very short term, which advisors should at least be familiar with when speaking about timeframes and other ‘convenience factors’. For instance, Transport Malta response times might reasonably be expected to stretch somewhat throughout the coming season. There’s also a heightened possibility of a shortage of berths this coming summer if the surge continues, although neighborhood authorities are working to raise the number available, with a new 200 berth marina having been approved in September this year.
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