Information

Chartering a yacht in Spain

Information

Chartering a yacht in Spain

CHARTERING A YACHT IN SPAIN

CHARTERING A YACHT IN SPAIN

The yacht charter market in the Balearic Islands has grown steadily over the past ten years. As a result, there is a demand for attractive charter yachts in almost all sizes and price ranges. Chartering is the most affordable way to enjoy yachting and also offers exceptional flexibility in choosing the yacht and sailing area.

Nevertheless, sooner or later most of our guests develop the desire for their own yacht. Currently, the favorable interest rate environment makes this decision even easier. The possibility of chartering the yacht during periods when not in use by the owner is a further commercial incentive. It offers an attractive way to cover running costs and partially offset the yacht's depreciation.

The exact terms and conditions should be considered beforehand. A significant cost factor when chartering a yacht in Spain is the registration tax.

STATEMENT TAX

FOR PRIVATELY USED YACHTS:

Yachts in Spain are subject to a 12 percent registration tax on the yacht's fair market value at the time of registration. This applies to Spaniards as well as foreigners who are resident in Spain or otherwise subject to Spanish taxation. If the privately used yacht is not registered in Spain or is less than 8 meters long, the registration tax is currently waived.

FOR COMMERCIALLY USED YACHTS:

All yachts used commercially, for example through chartering, are generally subject to a 12% registration tax. This also includes yachts not registered in Spain. However, if the yacht in question is used exclusively for commercial purposes, i.e., without any personal use by the owner or their family, a suspension of the registration tax can be applied for.

EXEMPTION FROM TAX PERMITTING FOR PARTIAL PRIVATE USE

However, if certain conditions are met, a yacht can be used privately and still be exempt from registration tax:

  • The yacht owner must be an EU citizen or a registered company based in the EU.
  • The owner must not be resident in Spain or otherwise registered for tax purposes.
  • A charter agreement with a Spanish charter company must be in place.

If these conditions are met, the yacht may be chartered to the owner by the charter company. A proper charter agreement with standard terms and conditions, as well as verifiable payment of the charter fee including the applicable VAT (IVA), are essential. The charter fee may then be refunded to the owner upon presentation of an invoice – after deduction of the standard industry commission.

Only by following this procedure is it possible to avoid registration tax in cases of partial private use. In all other situations, back payments and high penalties are likely.

CHARTER APPROVAL

The registration process for charter yachts can take several months, depending on various factors. New yachts and those already registered under the Spanish flag are usually registered within a few weeks. For yachts under the flags of other EU member states, registration typically takes between two and four months, depending on the season.

AUTHORIZED UNDER THE SPANISH FLAG:

The inspection is carried out by a Spanish surveyor. The necessary equipment and its service status, as well as the correct programming of the radio with the MMI identifier, are checked. Used yachts must be lifted out of the water to photographically document the condition of the hull.

Under the Spanish flag, charter yachts can be registered with a crew or bareboat (without a crew). If chartered with a crew, the skipper must hold a valid commercial license.

Charter approval under the German flag:

Basically, two inspections are required here: one by a German expert and another in accordance with Spanish regulations.

To obtain a charter license for crewed recreational boats and yachts between 8 and 24 meters in length, a so-called "safety certificate" is required. This is issued by the German Federal Maritime and Hydrographic Agency (BG Verkehr). Recently, it has also become possible to obtain this certificate directly on-site in Mallorca.

If the German-flagged yacht is to be chartered bareboat – i.e., without a crew – a so-called "boat certificate" is required. This is issued by the "Waterways and Shipping Authority". This certificate can also be obtained in Mallorca.

Both approvals are valid for two years and must then be renewed.

CREATION OF THE BOAT CERTIFICATE

The following facilities will be checked for presence, current validity date and function:

  • Required equipment
  • islands
  • Fully automatic life jackets/150 N (if not solid life jackets/150 N)
  • Fire extinguishers and fire extinguishing systems
  • Distress signals

Furthermore, the MMSI number must be entered in the VHF radio using GMDSS. Installed sound signaling systems must be approved by the Federal Maritime and Hydrographic Agency. The hull number, CE marking, and the yacht's name and home port will be photographed.

CHECKLIST: DOCUMENTS FOR THE CHARTER LICENSE

  • Purchase agreement or invoice
  • Spanish registration (Certificado de Navegabilidad) / boat certificate or safety certificate under the German flag
  • Proof of technical acceptance (ITB)
  • Original CE certificate
  • Proof of paid registration tax or exemption application
  • Proof of insurance including passenger insurance in accordance with legal requirements (please ask your insurance broker about this)
  • Possibly a transfer agreement (Contrato de Cesion) with a Spanish charter company
  • MMSI certificate
  • Certificates confirming the validity of the safety equipment

OPPORTUNITIES AND CHANCES

Several factors influence the financial and qualitative success of a charter yacht. They form the basis for a good long-term position in the charter market and satisfactory occupancy rates.

YACHT

New yachts are in high demand on the market and therefore easier to charter than older models. Even yachts several years old can be successfully chartered if they are in good technical and visual condition and well-maintained. Experience shows that clients are more price-sensitive in this case; however, excellent results can still be achieved with day trips and a favorable price-performance ratio.

PRICE

Attractive terms and conditions are necessary in every price segment to achieve ideal occupancy rates. In addition to the charter price, further ancillary costs such as crew or cleaning can be itemized. Pricing should be carefully considered in advance, as later increases are difficult to implement.

SERVICE AND CARE

Guests who feel well looked after are likely to book the yacht again and recommend it to others. Professional on-site customer service is crucial for a yacht's success and ensures consistently high occupancy rates. For bareboat charters, this includes a thorough briefing for the skipper and crew.

MARKETING AND BOOKING PROCESSING

Marketing a charter yacht through various distribution channels is essential to generating inquiries. Promptly processing inquiries and providing comprehensive customer advice builds trust and increases the likelihood of a booking.

CONTACT US – WE WILL ADVISE YOU ON CHARTERING YOUR YACHT

We have many years of experience in the yacht charter sector. If you are interested in purchasing or chartering a yacht, we are at your service. We will explain the necessary processes and possible scenarios, and help you save time and money. We would be happy to discuss the best pricing strategy and support you throughout the registration process. Please call us or send us your inquiry via our contact form.

Contact Marina Balear

This page is for informational purposes only. No guarantee is given for its completeness, accuracy, or timeliness.

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