With careful planning, a lessee of a pleasure yacht can be the owner of an EU VAT registered boat having paid minimum VAT as little as 5.4%.
In order to avail of such beneficial vat rate certain conditions must be met whereby the Maltese vat registered company (the lessor) would lease the boat to a third party (the lessee), that is, either a Maltese or foreign individual or company via a lease agreement. Furthermore the lessee may opt to purchase the boat at a percentage of the original price. An initial contribution is to be paid by the lessee to the lessor amounting to 40% of the value of the yacht at the beginning of the lease period and thereafter lease instalments shall be payable for a period not exceeding 36 months.
