Cyprus Leasing Structures
Our Yacht Registration Center provides Cyprus Leasing Structures, which constitute a generally acceptable ownership solution.
Owners utilizing our structures will be compliant with their obligations to the Cypriot Government/EU as VAT is paid to them over the life of the structure, albeit at a reduced rate, and the yacht is in free circulation throughout the EU. Use of our Cypriot solution scheme would allow importation and setting of the yacht in free circulation within the EU. Through the use of our Cypriot Solution, a reduced effective tax on acquisition and importation of a yacht is achieved on the basis of the provisions of the EU VAT Directive which provide that the long-term hiring of a means of transport is subject to VAT within the EU only to the extend it is used and enjoyed within the EU. Specifically, when the lessor is a company registered in Cyprus the charge to VAT for the services rendered is subject to the extent the pleasure boat is used within the European Union. This applies irrespective of the lessee origin, i.e. whether the lessee is a Cypriot or non-Cypriot physical person or company.
Our Cyprus Leasing Solution provides owners with a complete solution due to the following:
- The Cyprus Tax Authorities will treat the long-term hiring of means of transport on the basis of the provisions of the EU VAT Directive, which provide that the lease of a means of transport is subject to VAT within the EU only to the extend it is used and enjoyed within the EU.
- Owners are strongly recommended to obtain an official and indemnified tax opinion on the solution from a reputable source. We, YRC as well as our affiliated partners InterTaxAudit who assisted in the development of our Cyprus Leasing Solution will gladly provide its valuable advice.
- Every Leasing Structure requires pre-approval from the Cyprus Tax Authorities. The Tax Authorities’ intention is to examine any advance ruling applications on a case by case basis. We note that the final approval of the above scheme is upon the discretion of the Tax Authorities.