Superyachts Archives

A way forward for Malta’s maritime industry – William Vella

November 21, 2022 Leave a Comment

The government’s mission is to further support the yachting industry in Malta

The maritime industry has historically been a long-standing pillar of the Maltese economy. Admittedly, it became more so once Malta joined the EU. The challenge remains in keeping abreast of regulatory and legislative developments while remaining competitive with other jurisdictions.

The exponential growth experienced by the Malta flag over the last 32 years is a feather in the cap of successive government administrations that have always recognised the importance of this economic activity, which generates over €24 million annually. This does not include the total amount generated by private stakeholders involved directly and indirectly in ship registration services, which amounts to circa €200.27 million. The new Merchant Shipping Act came into force on April 6, 1973. Early 1977 saw further changes to the legal and administrative side of shipping. The collective effort of the various stakeholders in the sector, including Transport Malta, has put Malta on the map as the leading jurisdiction in shipping and yachting, with the biggest register in Europe and a leading register globally.

Along the years, there have been amendments to the original legislation to render it more receptive to operational adjustments and circumstances, including the payment of fees; provisional registration; priority of mortgages; ranking of credits; and bareboat charter registration among others. Such resilience has encouraged and supported the recent impressive expansion in the superyacht registration context.

Notwithstanding these achievements, this success should not serve as an alienation from the necessity to continuously review and adjust to ensure that the level of service being provided by both the private sector and the authorities is maintained and improved.

Earlier this year, the Ministry for Transport, Infrastructure and Capital Projects, headed by Minister Aaron Farrugia, launched the idea of a first National Policy for Superyachts during the Malta Superyacht Symposium jointly organised by the Malta Chamber and the Malta Maritime Law Association. The policy is expected to be released in the coming months. A steering committee, comprising prominent industry experts, among which the Malta Chamber and the MMLA, has been set up to evaluate several proposals by key industry players to identify how this industry can be further developed. These same key industry players, together with the steering committee, tackled several areas within the yachting sector. The policy is expected to be released in the coming months

The prime focus was that of achieving a more robust and clearer regulatory framework. Another area that was discussed was how to better equip and maintain the current infrastructure and cost structure. Additionally, the matter of how government departments and the private sector can work in tandem in an efficient manner was explored.

Government support was another topic of discussion and was considered at length. The discussion evolved on how the government can be of support to its agencies and authorities and to the private sector. Ultimately, green investment was also on the agenda of the steering committee where several proposals taking in consideration the environmental aspect in yachting were put forward and discussed.

It was made clear that the government’s mission is to further support the yachting industry in Malta and to consolidate Malta’s position as a leading yachting jurisdiction and as an international centre of maritime excellence in the Mediterranean. This will eventually lead to the contribution and creation of quality jobs in Malta. The need for such a policy is key for achieving and retaining excellence in the making is the outcome of consistent determination over the years, together with the outstanding quality and competence emanating from both the public and private sectors.

However, given the cutthroat competition, there’s no resting on one’s laurels. The National Yachting Policy is the way forward for Malta to achieve its objectives and remain the relevant go-to jurisdiction.

William Vella is a legal and compliance manager at Dixcart Management Malta Ltd and a member of the Malta Chamber of Commerce, the European Maritime Law Organisation and Malta Maritime Law Association.

Source: Times of Malta

Commercial Yacht – Pleasure Yacht Changeover Guidelines – 2 September 2021

September 6, 2021 Leave a Comment

On the 2nd of September 2021 the Merchant Shipping Directorate of Transport Malta issued the “Commercial Yacht – Pleasure Yacht Changeover Guidelines” (the Guidelines). The Guidelines serve both to lay down certain important considerations with respect to the change of registration of a Malta flag yacht from pleasure to a commercial (and vice versa) and to set out the procedural steps to be followed when yacht owners intend to carry out this change.

While the change in status of Malta flagged yachts has to date been readily accepted and processed by the Malta Ship Registry, the Guidelines now provide clear guidance on the steps to be followed in achieving the changes, in line with the Malta Commercial Yacht Code. The Guidelines clarify that the Merchant Shipping Directorate at Transport Malta imposes no limits on the number of changes made to the registration status of a Malta flagged yacht. The Guidelines further confirm that there is no limit on the duration of the change of registration, thereby offering yacht owners a considerable degree of flexibility with respect to changing their yacht’s registration.

Whilst this degree of flexibility is offered to the yacht owners, the Guidelines recommend that the same survey and certification regime as required for commercial yachts is retained when changing from a commercial to a pleasure registration. This is intended to facilitate a change back to commercial status. Additionally, the Guidelines specify that an undertaking to be signed by the owner or the manager of the yacht attesting that they will return the current certificate of registry of the yacht is to be filed immediately together with the request to change registration of the yacht.

The Guidelines set out that in the event of multiple changeovers during a single year the fees due to Transport Malta for a change from a pleasure to a commercial registration of the yacht shall be paid only once during the said year and not with each changeover.

The Guidelines are a welcome development since they provide yacht owners, managers and representatives clarity on the salient considerations for yacht registration changeovers and the procedural aspects linked to changeovers under the Maltese flag.

The Guidelines including the procedural steps for the changeover process may be found here.

by Matthew Cassar, Fenech & Fenech Advocates

Source: Lexology

Malta Yachting Industry challenges Notice by EU Commissioner

March 20, 2018 Leave a Comment

The Malta Maritime Law Association, the Malta Maritime Forum, the Yachting Services Trade Section within the Malta Chamber of Commerce, Enterprise and Industry, the Institute of Financial Services Practitioners and the Super Yacht Industry Network Malta denounce the recent Notice sent to Malta by the EU Commissioner in connection with the Maltese VAT rules for pleasure yachts.

In light of the fact that the Maltese system is fully in line with EU law and no similar notice was sent to Member States which apply the same principle under the EU’s VAT Directive the Maltese yachting industry questions why such a notice has been sent at all and why this discriminatory approach is being adopted by the Commissioner.

It is noted that the manner in which Malta has applied the option granted by Article 59a of the European Union’s VAT Directive is exactly the same as that adopted by Italy. Indeed, Malta’s rules on effective use and enjoyment of pleasure yachts within and outside EU territorial waters mirror those adopted by Italy through Circular No 49 of 7 June, 2002 issued by the Agenzia delle Entrate (Italian Revenue authorities).

The actual percentages of deemed use of yachts within EU territorial waters adopted by Malta are identical to those which Italy had drafted in the said Circular. Malta has certainly not re-invented the wheel, but has rather based itself on a similar interpretation given by Italy which the Italian tax authorities confirmed most recently in October 2010 through a “Vademecum del Leasing Nautico” issued with the collaboration of the Italian tax authorities.

Furthermore it is highlighted that France has been recognising since 2005 that it is difficult for lessors of yachts to establish how much a leased yacht is used within EU waters. Article 13 of the Administrative Instruction 3 A-1-05 published by the French tax authorities in Bulletin Officiel des Imports on 24 January, 2005 recognises such difficulty, and then allows yacht lessors to apply a 50% reduction on the total lease amount, irrespective of the category of the yacht. In practice, this means that only 50% of French VAT would be payable as a result of this French rule.

Malta’s system does not exempt yachts from payment of VAT but rather provides guidelines (as allowed for by the EU Directive) regarding deemed use outside and within EU territorial waters such that yachts using such guidelines will always pay VAT at varying degrees.

We believe that both the Italian and French systems do not infringe the EU vat laws. Therefore we cannot understand why Malta’s system should be singled out.

We appeal to the President of the European Commission, Mr Jean Claude Juncker, to intervene in this matter so as to ensure that there is no discrimination against smaller EU States like Malta.

It is also the belief of the local Yachting Industry that it is in the European Union’s collective interest that the Commission protects the European yachting sector in line with the EU’s Integrated Maritime Policy thereby ensuring that Europe does not lose out to competition in the maritime sector by non-EU countries.

Finally, we appeal to all political parties and stakeholders in Malta in a situation where the Maltese system reflects a legitimate application of a principle of EU law which is supported by other EU Member States, to act as a united front in protecting Malta’s yachting industry.

Joint Communiqué

November 20, 2017 Leave a Comment

The Malta Maritime Law Association, Malta Maritime Forum, The Yachting Trade Section within the Malta Chamber of Commerce and Super Yacht Industry Network Malta have issued a communiqué in reaction to the articles reported in the press on a communication sent by the French Commissioner Pierre Mascovici to Minister Scicluna regarding the application of rules on VAT relative to yachts.

Read the full text

New Guidelines on Private yacht carriage capacity

April 12, 2017 Leave a Comment

At the start of 2017 Transport Malta, the authority responsible for the administration of the Malta flag, introduced new guidelines that allow more than 12 persons on board privately registered yachts.

Since their launch, these guidelines have been welcomed by the industry, not least since they represent the consolidation of a flexible approach towards authorisation for the carriage of additional guests on board and a departure from the previously strict requirement for yachts to be built in accordance with the International Convention for the Safety of Life at Sea or the Passenger Yacht Code and registered with a red ensign flag.

These guidelines apply to yachts both above and below 500 gross tonnes and will be applied on a case-by-case basis at the discretion of the authority. Further, pleasure yachts falling within the ambit of the guidelines will be prohibited from navigating more than 150 miles from a safe haven while carrying more than 12 persons.

Requirements

Yachts falling under the guidelines must:

hold a valid class certificate (a requirement applicable for yachts over 500 gross tonnes);
comply with the requirements of the Commercial Yacht Code;
possess an approved stability booklet, which covers the loading conditions relative to the total number of persons being requested on board;
install and carry the appropriate safety equipment, depending on the expected number of persons on board;
have a 100% life raft capacity;
carry a compliment crew in line with the Commercial Yacht Code;
have been issued a safety radio statement of compliance (applicable to yachts over 300 gross tonnes) or a safety radio certificate (for yachts over 500 gross tonnes); and
comply with the International Convention for the Prevention of Pollution from Ships requirements, as detailed in the Commercial Yacht Code.

The guidelines also require an intermediate survey to be effected every two-and-a-half-years, starting from the date on which the vessel is allowed to carry more than 12 persons. The aim of this survey is to verify the continued compliance with the minimum requirements.

Comment

The Malta flag has increasingly garnered a solid reputation as being one of the leading European flags and is favoured by owners, financiers and operators of private and commercial yachts. Speaking at the Fifth Opportunities in Superyachts Conference organised in Malta on the February 23 2017, Minister for Transport and Infrastructure Joe Mizzi noted a record increase of over 14% in the registration of superyachts over 24 metres under the Malta flag over the past year. He attributed this success to the high level of service offered by both the public and private sectors and the “various initiatives and strategies in favour of the industry offering a holistic package”.

The new guidelines stem both from a recognition by the Maltese administration that there is a gap in the superyacht market and the administration’s continued effort to remain at the forefront as a leading yachting flag, which is conscious of the need to meet the industry’s frequently changing requirements while maintaining the highest possible technical standards.

Contributed by Alison Vassallo, Fenech & Fenech Advocates

Source: ILO 12 April 2017

Member of the Comité Maritime International

A way forward for Malta’s maritime industry – William Vella

Commercial Yacht – Pleasure Yacht Changeover Guidelines – 2 September 2021

Malta Yachting Industry challenges Notice by EU Commissioner

Joint Communiqué

New Guidelines on Private yacht carriage capacity

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