Spain Yacht Matriculation Tax Update

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An article written by Alejandro Bonet Templeton – Nautical Lawyer in Almar.

The Spain Yacht Matriculation Tax, officially known as the “Impuesto Especial sobre Determinados Medios de Transporte,” is a significant consideration for yacht owners and operators navigating Spanish waters.

This tax, set at 12% of the yacht’s value, applies under specific circumstances, making it crucial for yacht owners to stay informed on compliance requirements and optimize operational efficiency.

Scope and Application of the Matriculation Tax

The Spain yacht matriculation tax update is particularly relevant for pleasure yachts exceeding 8 meters in length under the following conditions:

1. Registration in Spain: Yachts, whether new or pre-owned, that are registered under the Spanish flag are subject to this tax.
2. Usage by Spanish Residents or Entities: Yachts, irrespective of their flag state, that are used in Spanish waters by individuals or entities considered residents in Spain are liable for the tax. Residency is determined by spending more than 183 days per year in Spain or having primary economic interests within the country. For legal entities, being incorporated under Spanish law or having a permanent establishment in Spain constitutes residency.

Spain Yacht Matriculation Tax: Exemptions and Recent Clarifications

Several exemptions exist for the Spanish Matriculation Tax, notably for yachts used exclusively for commercial charter operations.

However, there has been ongoing debate about the application of these exemptions, particularly regarding usage by related parties such as the Ultimate Beneficial Owner (UBO).

In December 2024, the Spanish Directorate General of Taxes (DGT) issued binding rulings to clarify these matters:

• Exclusive Charter Use: Yachts that are effectively and exclusively employed for charter in Spain may qualify for an exemption from the Matriculation Tax. It is imperative that this exemption is applied for and granted before commencing charter activities.
• Usage by Non-Resident UBOs: The rulings specify that if the UBO or related individuals are non-residents of Spain and do not have a direct establishment in the country, they may utilize the yacht under standard market conditions without jeopardizing the tax-exempt status. This means that such usage, when conducted transparently and at market rates, does not negate the exemption.

These rulings highlight the importance of maintaining a genuine commercial operation with appropriate corporate structures and resources.

The Spanish tax authorities emphasize that the exemption is contingent on the yacht’s exclusive use for charter activities and that any private use, especially by residents or entities with establishments in Spain, could trigger tax liabilities.

Implications for Yacht Owners and Operators

For yacht owners and operators, particularly those in the Balearic Islands and surrounding regions, these updates necessitate a thorough review of operational and tax compliance strategies.

Key considerations include:

• Accurate Residency Assessment: Regularly evaluating the residency status of yacht users to determine tax obligations.
• Proper Documentation: Maintaining meticulous records of all charters, user agreements, and evidence of market-rate transactions to substantiate the commercial nature of operations.
• Timely Exemption Applications: Proactively applying for Matriculation Tax exemptions before initiating charter activities to avoid potential liabilities.

Given the complexities and financial implications of the Spain yacht matriculation tax update, yacht owners are strongly advised to seek specialized legal counsel to navigate these regulations effectively.

Expert Legal Guidance for Yacht Tax Compliance

Almar Lawyers, based in Ibiza, specializes in maritime and yachting law, providing expert legal guidance to ensure compliance with Spanish Matriculation Tax regulations.

Their experienced legal team assists yacht owners with tax obligations, charter operations, and exemption applications.

For personalized advice and comprehensive legal support on the Spain yacht matriculation tax update and other maritime legal matters, please contact Almar Lawyers.

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