Chartering in Spain
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SOS Yachting Spain was founded in 2014 following a number of changes to Special Duty Law 38/1992 which
had imposed a 12% Matriculation tax on yachts, motorcars and aircraft.
The first change allowed European flagged yachts to charter in Spain without changing the registry or paying
the Matriculation tax.
The second concerned the elimination of the 15 meter LOA limit to obtain the exemption from the Matric tax.
Now EU flagged commercial yachts can charter in Spain under the same conditions as Spanish flagged yachts.
Thirdly, EU (but not Spanish) registered yachts chartered in Spain by Spanish residents or Spanish entities for
less than 3 months will be exempt from the Matric tax.
Finally, if certain conditions are met, non-EU flagged yachts can also charter in Spanish waters.
Requirements for chartering in Spain
The presentation details the rules in force in Spain since 2014. To date there have been no changes but check
our website for further information and updates.
Following the enforcement of EU regulations implemented after the change in ‘the place of supply’ rule,
commercial yachts are able to charter legally in Italy, France, Spain and Croatia.
Although all four countries belong to the EU and are governed by the same EU laws the way in which EU laws
are applied locally differs as do the VAT rates since each country has the right to decide how EU laws are
applied locally.
Requirements for chartering in Spain
21% VAT is due on charter fees.
The yacht must register with the Spanish Government in the sector for charter activity in each region it intends to
charter.
If compliant with all regulations and requirements, non-EU flagged yachts may charter in Spanish waters prior
application if no EU flagged yachts are available. The Community status of a yacht will need to be proven by the customs
document (T2L).
In addition, the law obliges all yachts with the Matriculation tax exemption to be “effectively and exclusively”
engaged in charter in the Spanish territory.
Requirements for chartering in Spain
In addition, the Ultimate Beneficial Owner and any related parties may charter in Spain and abroad if the related parties
are not Spanish residents or non-Spanish residents with an establishment in Spain.
Establishment does not imply a “permanent establishment” rather it means the related party has an “economic
connection” with Spain. In this case advice must be sought on a case to case basis.
Yacht Licenses
In order to charter in Spanish waters, a yacht owning company must appoint a VAT representative in Spain and
obtain a VAT number.
The VAT representative can apply for the Matriculation tax exemption, register the yacht in the charter activity
sector, apply and handle all the issues regarding Spanish VAT compliance.
If a charter starts in the Balearics, you must be equipped with Charter License from the Balearic Government. If it
starts from the Spanish mainland, you must be equipped with a Charter Permit from the Harbour Master’s Office
where the charter starts.
Does the fiscal representative issue all the invoices and do bookkeeping for the commercial activities of the
yacht in Spanish waters?
No, invoices are issued by the owning company. The owning company sends them to the fiscal representative
for bookkeeping. The returns are filed by the fiscal representative.
When are VAT returns filed?
The company must file a VAT declaration quarterly and VAT returns at the end of the year via the fiscal
representative.
Can non-EU flagged yachts start and end a charter in Spanish waters?
As of Aug 26 the Government decided to allow the charter non-EU flags charter in the Balearics, providing the proper
administrative authorization is obtained from the Balearic Government (the current regime for EU flags is simply an
affidavit of liability).
This means that it will be necessary to file documentation about insurance, tax, certificates and the fact that “there
are no EU yachts available” to provide this service.
All non-EU flagged yachts must be duly imported into an EU country using the DAU customs form. It is advisable to
have proof of status in the form of the T2L declaration from the importing customs.
Will the owning company be subject to taxation in addition to VAT in Spain?
Yes, only if the yacht is considered EP, i.e. as having permanent establishment in Spain, the owning company has to
file an IRNR tax declaration.
Is VAT due on fuel?
If a yacht is commercially registered (or a passenger vessel), bunkering is duty free on the mainland. VAT at 21% is
charged on fuel in the Balearics.
Is VAT due on APA ?
APA in Spain is subject to VAT.
For more information about chartering off mainland
Spain and the Balearic Islands, contact
Alessia Manfredi
info.spain@sosyachting.com
or
M + 34 637 26 53 40
For info and updates visit
www.sosyachting.com
www.sosyachting.com
Disclaimer
This document is intended as a general guide only and does not constitute legal or tax advice. The application of the advice in this document to
specific situations will depend on the particular circumstances involved. Accordingly, we recommend that readers seek appropriate professional
advice by consulting an Attorney, Chartered Tax advisor or Chartered Accountant regarding any particular problems they encounter. This
information should not be relied upon as a substitute for such advice.
Although we have made considerable efforts to be thorough in the construction of these pages, we offer no assurance that the information posted
here is timely, accurate, complete or applicable to any particular set of facts. Its application to specific situations will depend on the particular
circumstances involved. While all reasonable attempts have been made to ensure that the information contained herein is accurate, SOS Yachting
companies and its legal owners accept no responsibility for any errors or omissions it may contain whether caused by negligence or otherwise, or for
any losses, however caused, sustained by any person or entity that relies upon it.
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