CYPRUS AND MALTA YACHT LEASING SCHEMES

CYPRUS

  • A Lease Agreement must exist between a Cyprus company and any legal or natural person, irrespective of origin.
  • The yacht must sail to Cyprus within one month from the commencement of the Lease Agreement.
  • An initial contribution must be paid by the lessee to the lessor amounting to at least 40% of the value of the yacht.
  • Lease payments must be monthly and the lease period cannot exceed 48 months.
  • The lessor must make a total profit from the leasing agreement of at least 5% on the initial value of the yacht.
  • Any purchase value at the end of the lease agreement shall not be less than 2.5% of the original value of the yacht.
  • A prior written approval from the VAT Commissioner is required with regards to the value of the yacht and the applicable VAT rate.
  • Upon the first VAT payment, a VAT Certificate issued in the name of the Company along with a confirmation that the Cyprus company is performing its business activities through Cyprus allow the yacht to sail within EU waters.
  • A VAT paid certificate will be issued at the end of the scheme.
  • RATES:

MALTA

  • A Lease Agreement must exist between a Maltese company and any legal or natural person, irrespective of origin.
  • The yacht must sail to Malta upon the commencement of the Lease Agreement.
  • An initial contribution must be paid by the lessee to the lessor amounting to at least 40% of the value of the yacht.
  • Lease payments must be monthly and the lease period cannot be less than 12 months or exceed 36 months.
  • The lessor must make a profit from the leasing agreement over and above the value of the yacht
  • Any purchase value at the end of the lease agreement shall not be less than 1% of the original value of the yacht
  • A prior written approval from the VAT Commissioner is required with regards to the value of the yacht and the applicable VAT rate.
  • Once the VAT is paid for the first quarter, a provisional VAT-paid certificate will be issued. This certificate allows the yacht to sail within EU waters.
  • A VAT paid certificate will be issued at the end of the scheme.
  • RATES: