Why choose the prestigious Maltese Flag for Superyacht registration?

Malta is one of the most popular flags around the globe for superyacht registration and has one the largest ship registries in the world by tonnage and the largest in Europe for superyacht registrations.

In addition to its efficient VAT regime, Malta boasts an attractive maritime environment which offers owners many compelling benefits. Here’s a breakdown of why Malta is a jurisdiction of choice for superyacht registration: –

Reputable and EU-Compliant Flag

As an EU member state, Malta’s flag is on the Paris MoU Whitelist, meaning it’s considered a low-risk and high-quality flag by port authorities. It complies with IMO and EU regulations, which helps avoid detentions or delays during port state control inspections.

Favourable On-Shore Tax Regime

Malta is renowned for its VAT-efficient solutions which offer many financial benefits including leasing schemes that can significantly reduce VAT on the value of the yacht. VAT is also deferred on yachts imported into the EU through Malta, depending on use and structure and there is no tax on the sale or transfer of shares in a yacht-owning company.

Efficient Registration Process

Malta provides a fast and efficient registration system for both commercial and private yachts (including those over 24m for commercial operations). Malta’s ship registration system has also recently undergone a significant digital transformation, enhancing the efficiency and accessibility of maritime services.

The new online platform now enables shipowners to manage aspects of vessel registration and certification electronically, such as submitting new applications, renewals and certifications. The platform has integrated automated compliance checks to streamline submissions and minimise delays and implemented real-time tracking for users to monitor the progress of their submissions and receive timely updates.

Strong Legal and Maritime Infrastructure 

A historic maritime hub, Malta’s ship registry dates to 1973 when it established as an Open Register of Shipping under the Homeport, Valetta. Malta organically grew its reputation in the maritime industry and over the years its ship registry became recognised for its excellent standard of service, offering higher efficiency over other registries. 

Malta’s legal system supports ship financing, mortgage registration, and dispute resolution and English is an official language which simplifies documentation and communication.

Accession to the EU

A yacht registered in Malta can navigate freely across EU waters without requiring special authorizations. It is also excluded from any additional taxes or custom duties.

Recognition and Prestige

The Maltese flag is widely recognised in the global yachting sector and carries a prestigious reputation. This aids owners when sailing in international waters due to its compliance with maritime regulations which results in easier clearances in ports around the world and fewer inspections.

How to register a yacht in Malta?

The registration of your vessel will depend on whether you wish to operate your yacht privately or commercially. Malta offers a range of registration options including private, commercial, yachts under construction and bareboat charter registration.

Prior to the registration process, owners must meet the eligibility criteria. Fortunately, there is no striction on nationality of owners in Malta, and they permit foreign individual or company ownership. If the yacht is owned by a foreign individual or company, a local agent such as a company or legal representative is required.

The provisional registration can be completed within 2–3 days if all documents are in order and permanent registration can be completed within 6 months. Our team facilitate this process for the client and keep it as straightforward as possible.

During the provisional process we will request for standard documentation from the owner, such as proof of ownership, a copy of the yachts certificate of survey and identification documents. The registration fees will also be due at this stage which are based on the yacht’s tonnage.

During the provisional stage there are various steps to complete to obtain the permanent certificate of registration including submitting the original survey and tonnage certificates, evidence of safety compliance and settlement of any remaining fees.

Is the registration process different for private and commercial yachts?

Yes, the process involves different requirements due the way the vessel is being operated.

The process for private yachts is considered simpler and requires standard checks for surveys and compliance, basic registration documents and on-going requirements to be met. These requirements include periodic surveys for safety aspects and structural integrity but are considered less stringent as commercial vessels.

Commercial yacht registration in Malta does contain a few additional steps and the standards are recongised to be higher. This includes Maltas Commercial Yacht Code which sets out various requirements across safety, crew, operational aspects and life-saving appliances. The yacht is required to complete an initial survey to ensure full compliance with yacht code and there are annual inspections to be maintained.

Overall, the safety standards are higher on commercial yacht and there are additional inspections and documentation requirements to be met.

What are the benefits of private registration in Malta?

Private registration in Malta is a better route for owners wishing to utilise their yacht privately and prefer lower ongoing regulatory requirements. Some of the key benefits include:  

• Simplified compliance
• Lower registration and survey costs
• Exempt from commercial taxes and commercial code standards
• Attractive VAT regimes available for private use
• A reputable flag which carries good reputation at ports worldwide
• Ability to sail across EU waters

What are the advantages of commercial registration?

Commercial use is suitable for owners wishing to generate income by chartering their yacht and can benefit from:

• Malta’s Commercial Yacht Code is recognised as a favourable regulatory regime with a clear framework for commercial registration.
• Malta’s ship registry is well-regarded which aids international sailing for charter clients and port authorities
• As an EU flag state, commercial yachts in Malta receive better treatment due to its compliance with international maritime conventions.
• Commercial registration in Malta offers competitive fees which are known to be cheaper than other major registries.
• Malta offers various attractive VAT regimes for commercial vessels.

Interested in yacht registration in Malta?

At Affinity, we provide a range of bespoke corporate services for clients in the yachting sector by a team of professionals with decades of industry experience. We work closely with owners, captains and intermediaries, and provide; –  

• Implementation of tax-efficient ownership structures
• VAT, compliance and administration
• Multi-jurisdictional EU VAT registrations
• VAT efficient importation into the EU
• Administration of the ownership structure
• Statutory administration services
• Tailored crew employment and management services with Affinity Crew
• Liaison with banks and advisors in relation to financing the yacht and registration of mortgages
• Liaison with legal advisors and brokers in respect of purchase and sale
• Payment of supplier invoices and management of crew expenditure and limits
• Preparation of budgets, periodic management reports and annual financial statements

Contact us

Our dedicated team of yachting professionals located in Malta would be delighted to provide you with guidance on Malta’s yachting environment and to assist you in meeting your unique requirements.

Contact our Managing Director in Malta, Joanne Fenech, at joanne@affinityco.com  for a one-to-one conversation today.