WE ARE METICULOUS

The Process

✓ Our side (let’s nominate it as “ABC”) acquires the yacht via a wholly-owned subsidiary with a loan from the Beneficial Owner (UBO)

✓ The subsidiary grants a first legal mortgage to the owner, as well as a charge over the shares of the subsidiary, as 100% security of the loan

✓ As a bareboat rental company ABC is entitled to reclaim the entire VAT rate due on the acquisition

✓ The subsidiary then rents the yacht back to a company owned by the now ex-owner on a bareboat basis for an initial period of five years

✓ The payable rental is determined in accordance with the estimated depreciation rate of the yacht

✓ The rental is being levied VAT on the rental at the full rate under the specific country’s “use & enjoyment rules”  (20% in Monaco; 19% in Cyprus; 18% in Malta) while the yacht is in the EU, and at 0% when outside of the EU.

✓ Invoices for the rental plus VAT are issued every quarter, and once paid, the yacht carries those paid VAT receipts on board to show that VAT has been paid and that the yacht is in compliance with its obligations to pay VAT.

ILLUSTRATION FOR A €30MILLION YACHT

Monaco VAT Deferment Solution

Cost of yacht

30,000,000

Value in 5 years assuming 4% pa depreciation

24,000,000

Annual rent

1,200,000

VAT payable thereon at 20%

240,000

Set up costs – own SARL

50,000

Annual fees

60,000

Importation via Italy

10,000

All legal fees for both parties paid by the client

NOTE: VAT if paid in full at the mean EU rate of 20%

6,000,000

VAT is payable at the full rate of 20% when in the EU, and 0% when out. This is the maximum payable

Total costs year 1

360,000

Costs year 2

300,000

Costs year 3

300,000

Costs year 4

300,000

Costs year 5

300,000

Total costs over 5 years

1,560,000

VAT saving

4,440,000

WE HAVE THE SOLUTIONS

Contact Us Today!

Have questions about VAT deferments for your super yacht? We’re happy to answer all of your queries!

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WE HAVE THE SOLUTIONS

Contact Us Today!

Have questions about VAT deferments for your super yacht? We’re happy to answer all of your queries!

How have you learned about us?
Thank you for your message. It has been sent.
There was an error trying to send your message. Please try again later.