Malta Yacht Leasing Scheme

Malta yacht leasing is one of the most widely used ways for private owners to bring a superyacht into EU waters. The scheme does not reduce the amount of VAT payable, but it allows the payments to be spread over time, while the yacht is treated as VAT-paid from the start.

How the scheme works

The yacht is leased to her user under a structure approved in Malta, and VAT is paid in instalments over the lease. As soon as the first instalment is made, the yacht is treated as though she is VAT-paid, which means she can be used in EU waters by her owner, family and guests.

Selling a yacht under the scheme

When the yacht is sold, the seller has a choice. They can forgo the instalments already paid and sell the yacht VAT-unpaid, or pay the remaining instalments and sell her VAT-paid. Which is better depends on the buyer and on how far through the scheme the yacht is, and it should be built into the sale negotiations early.

Who it suits

The scheme suits private owners who want to use the yacht freely in EU waters, including EU-resident owners, but who prefer not to pay the full VAT bill up front. It often works alongside the Malta flag, although the two are separate questions.

Setting it up

Like Temporary Admission, the scheme requires the yacht to be bought in international waters, so it has to be planned before the purchase completes. We advise on whether the scheme fits, structure the ownership and lease, coordinate with our partners in Malta and organise delivery in the right location.