Superyacht ownership restructured before an EU season
A 42-metre yacht bought through the wrong company, on advice that quoted VAT tables scrapped five years earlier.
The situation
An owner had bought a 42-metre yacht through a company that also held unrelated investments, on advice that relied on Malta's old percentage tables from before 2020. Charter income had come in without proper paperwork, and the crew were being paid by yet another company.
- Everything had to be fixed before the Mediterranean season started.
- There was a mortgage on the yacht, so changing the owner needed the lender's agreement.
- Past charter income had to be put right, not ignored.
- The owner wanted to keep chartering, so the duties that come with commercial registration had to be met properly.
One yacht, one company, one clean arrangement for how it's used — with tracking evidence replacing the scrapped percentage tables.
- Charter income
- Paid to the owning company under written agreements, with VAT handled correctly.
- Owner's use
- Charged at the market rate under a written charter, not taken for free.
- VAT position
- Backed by continuous tracking of actual use in EU waters, rather than an assumed percentage.
What we did, step by step
- 01Position assessed honestly
Worked out the past exposure first, including charter income received without paperwork, so the owner knew the number before deciding anything.
- 02Unrelated assets removed
Moved the investments out of the company, leaving one company that owns only the yacht.
- 03Lender consent obtained
Spoke to the lender and got its agreement before changing anything, so the loan was never in breach.
- 04Use arrangement rebuilt
Put the charter paperwork, hire rates and owner-use terms on a fair-market footing with written agreements.
- 05Tracking implemented
Installed continuous tracking of where the yacht is used and agreed how long records are kept, instead of relying on the scrapped tables.
- 06Crew regularised
Moved crew contracts, payroll and social security into the owning company, with the right certificates.
- The yacht went into the season with a VAT position backed by evidence, not by a concession that no longer exists.
- Past charter income put right before the tax office came asking.
- The loan kept in place, with the lender's agreement obtained before every step.
- Crew contracts and certificates brought into line with the commercial registration.
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