Sardinia Luxury Tax on Mediterranean Yacht Charter Vessels Abolished

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PHILANDERER sailing yacht
Sail yacht PHILANDERER is the largest sailing vessel licensed to legally charter in Spanish waters. She wants bookings in the Spanish Balearic Islands this summer!
Philanderer is currently booked from 28th July to 04th August (Palma/Palma). The sailboat is offering special rates for reservations secured before 31st May 2012.
Philanderer comes from Thailand, built by Concorde Yachts. This sailboat is well-known in the luxury yacht charter market. She boasts multiple features. For instance, large interior volume, a great layout for entertainment, and 5 guest cabins. Her onboard amenities include a sauna and a well-furnished gym.
Philanderer completely refit from 2009 through 2011. She is in bristol condition, from top to bottom.
There are an estimated 300 days of sunshine per year. The Balearic Islands offer wonderful beaches and rich culture. They are a preferred holiday destination in Spain. More passengers pass through the Palma de Mallorca airport than any other in Spain.
This entry was posted in Yacht Charter Destinations Special Offers Yacht of the Week and tagged Menorca, Mallorca, Philanderer, Ibiza, Balearic Island yacht charter, Formentera, Menorca yacht charter, Gimnesias, Concorde yacht, Cabrera, Palma yacht charter, Pitiusas, Spain yacht charter
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“Spanish IVA (VAT) remains at 21% – nearly double the typical fees found in other EU countries,” states Jana Sheeder, President of SailAway Yacht Charters and 1-800 Yacht Charters. Sheeder adds, “A myriad of permits and registration requirements makes it difficult for charter vessels to commit to cruising in Spain.Without Spanish registration, these yachts cannot begin and end a charter within Spanish waters. So the combination of administrative burdens and high IVA keeps most charter yachts out of Spain.”
Sheeder explains,“The tax has not been eliminated. The Ministry was careful to use the words, ‘Ceased to be applied.’ While we expect the Spanish Parliament to vote in favor of the Ministry’s position on the matriculation tax, there is no guarantee that a future administration won’t vote to reinstate it.”
Still, the abolishment of the matriculation tax is a step in the right direction. Parliament’s approval is expected within the next few months and the new exemption should be in place in time for the summer 2014 charter season.
This entry was posted in News Educational and tagged Jana Sheeder, president of 1-800 Yacht Charters, Spain yacht charter, VAT, Balearic yacht charter, IEDMT (Impuesto Especial sobre Determinados Medios de Transporte), matriculation tax, IVA, what is VAT, SailAway Yacht Charter Consultants, luxury yacht charter tax
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Bon appetit! Motoryacht TAKARA will begin the 2017 Balearic Island yacht charter season with a new chef in the galley.
“Available in the Balearic Islands, M/Y TAKARA begins (the) 2017 season with a new super experienced Chef in her crew,” reports the yacht’s manager. “Chef Daniel Wilbor begins a new professional venture on board…With over 10 years of experience in the yachting industry he has already worked as a chef in 11 different yachts and has sailed all across the Atlantic Ocean! Born in Great Britain, he describes himself as a creative, competent and talented cooker with an special interest in Thai cuisine.”
She then gave us more information about him: “He also has a wide repertoire and can produce excellent meals from Mediterranean to Japanese, Indian and Asian Fusion, or North American and English dishes, all to a very high standard. His style is fresh and innovative combining a respect for quality products and a good arsenal of both classical and modernist cooking techniques.”
Delicious, well-plated meals are integral to the overall Superyacht Experience, and it’s always good news when a chef like Daniel joins a professional superyacht team.
The San Lorenzo 126 yacht TAKARA is one of our newest additions to the Ibiza yacht charter fleet. This is a brand new, 2016 model, 38 meters in length, with comfortable accommodations for 12 guests in 5 staterooms (1 Master, 1 VIP, 1 Double and 2 Twins – with a Pullman berth in each)
Chef Wilbor is part of a 6 person crew.
Motoryacht TAKARA is fully licensed to charter in Spain. This is extremely important and often overlooked by charter brokers and charterers. Without this special registration, a yacht cannot begin and end a charter in Spanish waters; furthermore, local Spanish workers like massage therapists, are precluded from coming aboard and providing services for the charter guests. Without having a Spanish yacht charter license, a superyacht needs to begin and end the charter in a remote location, like France, which adds wasted time and increased fuel costs to the overall charter. That is not The Superyacht Experience™ we envision for our clients!
July and August = 24.000€ per day — 145.000€ per week + 21% VAT
Rest of the year = 21.500€ per day — 130.000€ per week + 21% VAT
(The price includes a berth in Palma Mallorca in the summer season)
In conclusion, come experience the talented menus of newly-welcomed Chef Daniel Wilbor onboard yacht TAKARA this summer. Plan a private luxury yacht charter in the Balearic Islands of Spain. Text “TAKARA” to 305-720-7245 for more information or complete our online inquiry form at https://1800yachtcharters.com/book-now-contact-us/ , and we will contact you right away!
This entry was posted in News Educational and tagged plated, the superyacht experience, yacht chef, Mallorca, San Lorenzo, chef, Spain license, Balearic yacht charter, Takara, Balearics, Chef Daniel Wilbor, crew, new hire, Spain yacht charter, superyacht crew, Ibiza yacht charter
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Spain wants more private luxury yacht charter business in the Balearic Islands. However, they have a funny way of showing it.
Regular readers of our blog might recall the controversy. Previously blogged, it surrounds Spain’s 13.7% yacht charter Matriculation Tax (blog September 14, 2013). Heavy lobbying by the Spanish yachting and marina industries saw that tax removed. Unfortunately, Spain is still imposing far greater taxes on charters. This is as compared to fellow European Union countries like France, Italy and Malta.
Case in point. Picture a specific yacht that is legal for charter in both Spain and France. It incurs TWICE as much VAT liability in Spain. This is even though the tax percentages are nearly identical!
A yacht charter example.
Formula 1’s Eddie Jordan has a Sunseeker 155 motor yacht BLUSH for charter. He often keeps her in the Balearic Islands for the summer charter season. When there is demand, the yacht can easily reposition. She moves to the South of France for clients who prefer a French yacht charter vacation. Additionally, she can go to the coastal areas of Italy and nearby islands of Sardinia and Corsica. Her weekly charter rate remains the same between both destinations. The rate is €220,000 per week in high season. VAT rates are almost identical: 20% in France and 21% in Spain.
A client who charters Sunseeker 155 yacht BLUSH in Ibiza, however, will see a tax of €46,200 on his charter agreement, while a client chartering the yacht in Cannes, will incur a charge of just €22,000.
If you’re the client taking the yacht in Spain, one word comes to mind (well, maybe a few words…), most notably, “OUCH!”
So what is the explanation? Why the drastic difference if the tax rates are nearly identical? The answer can be found in Article 58 of European Union Council Directive 2006/112/EC.
We’ll let our company President, Jana Sheeder, explain why this is the case:
“The European Union directive on VAT, as it relates to private yacht charter revenue, has a clause entitled, ‘criterion of effective use and enjoyment.’ This clause allows member states to implement a VAT reduction scheme. However, it is not compulsory. Popular cruising destinations like France, Italy, and Malta all take advantage of this opportunity to reduce VAT. Unfortunately, Spain does not.”
In our example above, the client who charters motor yacht BLUSH in France, ends up with an effective tax rate of 10%. The client who charters this yacht in Spain pays the full rate of 21%.
Note – the tax savings only kicks in when the chartered yacht cruises beyond 12 nautical miles – in essence, into international waters and out of the borders of the European Union. This is a simple task and almost all charter yacht captains will implement this strategy in order to save the charter customer 50% of the VAT rate. However, even if a yacht in Spain sails beyond the 12 nautical mile boundary, the Spanish government still insists on collecting the full VAT fee.
The Member States of the European Union include:
For those readers who enjoy the technical details, here is the verbiage of the directive:
In order to avoid double taxation, non-taxation or distortion of competition, Member States may, with regard to the supply of the services referred to in Article 56(1) and with regard to the hiring out of means of transport:
Alex Chumillas, the director of Tax Marine explains the directive and the result of Spain’s decision: “As is clearly defined in paragraph (a), the provision seeks to minimise VAT taxation applicable to certain services, among them the hiring out of means of transport (for instance charter),” “However, the provision has not been implemented in Spain. Therefore, chartering in Spain is subject to a flat VAT rate which does not benefit from any reduction, even when sailing beyond 12 nautical miles.”
Paragraph (b) allows Spain to levy VAT charges on certain services that have been provided outside of Spain – if the services are enjoyed inside of Spain. Let’s say a charter starts in Gibraltar. The yacht will need to register for VAT and pay VAT on the length of the charter in Spain (and of course, pass then expense on to the charter customer).
By choosing to implement paragraph (b) only, the Spanish government has chosen to only apply the more burdensome element of the directive. Is this the right thing to do to people wanting to experience travel in your country?
Like they did with the repeal of the oppressive matriculation tax in 2013, let’s hope the legislators in Spain come to realize a reduction in VAT will make the Ibiza yacht charter market competitive with neighboring France and the rest of the European Union states that derive strong financial benefits from the private luxury yacht charter industry.
VISIT https://1800yachtcharters.com/yacht-charter-monaco/ for a sampling of private yachts for hire in the Balearic Islands and throughout the Mediterranean this summer, courtesy of 1-800 Yacht Charters.We will be happy to create The Superyacht Experience™ for you.
This entry was posted in Destinations News and tagged Ibiza yacht charter, Tax Marine, Blush, Corsica, Sardinia, South of France, VAT, Balearic Islands, Jana Sheeder, yacht charter matriculation tax, president of 1-800 Yacht Charters, European Union Council Directive, Sunseeker, Member States, Spain yacht charter, Article 56(1)
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