Temporary Admission for Superyachts

Temporary Admission is how many non-EU owners enjoy European waters without paying VAT on their yacht. Under Temporary Admission, a yacht can cruise the EU privately for up to 18 months at a time, provided she and her owners meet the conditions and the rules on use are respected.

Who qualifies

• The yacht must fly a non-EU flag
• She must be owned by a non-EU company
• Her beneficial owner must be outside the EU
• She must be used privately, not for charter in EU waters

How the 18-month period works

Before the 18 months run out, the yacht must leave EU waters and visit a non-EU port. She can then return to EU waters immediately, and the process can be repeated indefinitely. Clients often ask whether Temporary Admission caps out after ten years. It does not: a yacht can keep restarting her 18-month period by leaving and re-entering EU waters.

The main restriction

The disadvantage of Temporary Admission is who may use the yacht. She must not be used by European friends and family unless the owner is on board, or at least in Europe. Owners who expect EU residents to use the yacht independently should consider paying VAT or the Maltese leasing scheme instead.

Setting it up correctly

Temporary Admission depends on the yacht being bought in international waters, so the structure has to be in place before completion. We set up the non-EU owning company, advise on a suitable non-EU flag such as the Cayman Islands or the British flag, and organise delivery in the right location. We also advise owners on keeping their use of the yacht within the rules once she is cruising.