Acquiring a yacht for private purposes always involves careful planning, which also entails the best financing method and how the tax is handled on the asset that is to be acquired.
Malta offers excellent opportunities for acquiring yachts for private purposes. In fact, if properly structured, purchasing a private yacht in Malta can be optimized via financial leasing with an option to purchase, resulting in a much lower VAT rate, both in terms of the leasing instalments and the final acquisition transaction.
With this method, the VAT that owners pay on their yachts is calculated on the basis of the percentage of time it is presumed the yacht will sail in European waters and finally a certificate of VAT payment is issued for the yacht. This is a very efficient way of acquiring a yacht for recreational purposes or for importing it into the European Union, namely with respect to VAT, which is a very significant part of the price of this type of vessel.
Download our guide on Yacht Leasing in Malta and find out more about the characteristics and advantages of this method.
The Moody’s rating agency has renewed its positive assessment of the Maltese economy, giving it a credit rating of A3 with a favourable outlook. In its recently published report, Moody’s has forecasted sustainable and healthy economic development with GDP growing to 2.7% in 2014 and 2.8% in 2015. Growth in 2015 will largely be spurred by consumer spending and capital formation, stimulated mostly by energy sector investment.
The Malta finance minister was pleased with the assessment of this report, stating that it constituted recognition that the government’s economic and fiscal policies were leading Malta in the right direction and that the country was experiencing an overall sense of optimism. According to Minister Edward Scicluna, last year’s budget measures helped put Malta among the European Union Member-States with the best economic growth, employment and unemployment rates, adding that the government would use the 2015 budget to continue to work toward these results.
Moody’s also noted that the public deficit to GDP ratio should drop by 1.7%, while the debt to GDP ratio is expected to be below 70% in 2015, 69.7% to be precise. Moody’s also points out that Malta also has a low and stable inflation rate and its balance of trade is expected to record a surplus in 2014 and 2015, sustained by continued growth in exported services.
The World Bank has published its Doing Business 2015 report. The report assesses the ease of doing business in different countries and Portugal ranks 25th.
Contributing to this favourable ranking was Portugal’s labour law reform, changes to regulations in fixed-term contracts brought into force in 2013, the drop in extra pay for working on holidays and the fact that it has become easier to cut jobs. The World Bank also highlighted corporate income tax reform and reduced taxation on company profits in 2013, dropping from 25% to 23%.
Doing Business 2015: Going Beyond Efficiency, a World Bank Group flagship publication, is the 12th in a series of annual reports measuring the regulations that enhance business activity and those that constrain it. Doing Business presents quantitative indicators on business regulations and the protection of property rights that can be compared across 189 economies — from Afghanistan to Zimbabwe — and over time. Singapore ranked number 1 among the 189 countries analyzed by Doing Business 2015, boasting the best business environment in the world, followed by New Zealand, Hong Kong (China), Denmark, Korea, USA, and the United Kingdom. Portugal ranked ahead of European countries such as the Netherlands, Belgium and Luxembourg.
Doing Business 2015 used 10 indicators to assess obligatory administrative processes and procedures for each country, including the time entrepreneurs take to developing projects and their respective costs, how quick it is to start a business, to build a warehouse or get an electricity supply and how easy it is to get credit.