Malta has built a formidable reputation in catering to owners’ needs while constantly taking into account industry practice and legal developments.  This has led to our jurisdiction being a go to choice for the setting up of Operating Leases. Such operating leases are formulated in accordance with best practices to ensure compliance with EU interpretations and ECJ  judgements and would generally comprise the following principles:


  • A Maltese shipping organization would be set up as the owner of the yacht – the Lessor, who would lease the yacht to another entity – the Lessee.
  • The place of supply of the yacht would be Malta.
  • The yacht would be available to a Lessee for a consideration for a specified period of time.
  • General principles relating to intra-community supplies and importations at the time of acquisition of the yacht by the Lessor and place of supply rules at the time of the supply of the yacht to the Lessee will apply.
  • The lease period and the consideration paid to the Lessor by the Lessee for the use of the yacht are commercial decisions that are established contractually between the parties.
  • Such decisions would be based on an assessment of the type of yacht involved, her specifications and value together with the prevailing market conditions.
  • The Lessee would pay VAT on a quarterly basis on the monthly lease instalments to the Lessor, having regard where applicable to the Updated Guidelines relating to the use and enjoyment of yachts.
  • Subject to a number of conditions being satisfied, the VAT department would upon a request to that effect, issue a letter confirming that the Lessor has declared and is accounting for VAT on the lease of such yacht in Malta.