The Maltese VAT Department has recently published guidelines about the taxation of yachts which are leased to third parties by a Maltese company.  In a lease transaction a Maltese company purchases a yacht and leases it to a third party with an option in favour of the third party to purchase the boat at a reduced price at the end of the lease. 

Further to these guidelines, the lessee of the yacht can now become the owner of an EU VAT-paid yacht by paying as little as 6.18% VAT on the original value of the yacht. Tax and costs on the transactions will have an incidence on the final outlay raising the total outlay by about 2%.  Further details can be provided on request.