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Income Tax on Non EU owned charter yachts in Spain


The amendment of matriculation tax law in 2013 signaled a relevant change for charter operations in Spain: the possibility for non EU flagged vessels to be licensed in the Balearics, this change will allow not only EU but Non EU flagged vessels to operate from the Balearic Islands.

Alex Chumillas Amat of Tax Marine tells "We have been actively working during the 2014/15 inter-season period with the Spanish authorities to simplify and clarify the tax and legal framework for charter activities in Spain. Among other major achievements our firm clarified with the Spanish Tax authorities the possibility for non-Spanish beneficial owners to use their yachts in Spain and benefit from matriculation tax relief".

Notwithstanding these developments, there are still many tax issues to be aware of when chartering in Spain, one of the less known potential taxes for charter yachts in Spain is tax on income. "This issue is especially relevant when the owning company is based in a jurisdiction without a double tax treaty in place with Spain, in this case the owning company might incur an important tax liability of 24% income tax on the charter fee in addition to VAT which is currently 21%".

"If you are considering the possibility of chartering in Spain this summer, we strongly advise you to analyze all the tax and legal aspects surrounding your yacht to avoid unexpected surprises".

By Maarten Janssen

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