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  • CYPRUS AND MALTA YACHT LEASING SCHEMES: A COMPARISON

Frequently, questions arise as to the comparison between the Cypriot and the Maltese Yacht Leasing Schemes. Although the principles on which both schemes are based are the same, there are some practical differences which may lead one to choose the one over the other.

We trust that the below comparison will be a useful tool in order to understand these differences.

Yacht Registration Centre, Y.R.C, may assist with the implementation of the scheme in either jurisdiction.

Should you have any further questions or require any further assistance, please   Contact Us

 

CYPRUS

MALTA

·        A Lease Agreement must exist between a Cyprus company and any legal or natural person, irrespective of origin. ·        A Lease Agreement must exist between a Maltese 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. ·         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. ·         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 . ·         Lease payments must be monthly and the lease period cannot be less than 12 months or exceed 36 months.
·         The lessor must make a total profit from the leasing agreement of at least 5% on the initial value of the yacht. ·         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 2.5% of the original 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. ·         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. ·         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. ·         A VAT paid certificate will be issued at the end of the scheme.

 

For the full comparison including the VAT Rates, please click here   CYPRUS AND MALTA comparison YRC_Layout 1

 

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Yacht Registration Centre, Y.R.C

15 Agiou Pavlou
Nicosia - 1105
Cyprus

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