Charter a yacht in Spain

Information on

Chartering a yacht in Spain

Information on

Chartering a yacht in Spain

CHARTERING A YACHT IN SPAIN

The yacht charter market on the Balearic Islands has grown continuously over the past ten years. As a result, there is a demand for attractive charter yachts in almost all sizes and price categories. Chartering is the cheapest way to enjoy yachting and also offers particular flexibility in the choice of yacht and sailing area.

Nevertheless, sooner or later most of our guests will want to own their own yacht. Currently, the decision is made easier by the favorable interest rate situation. The possibility of chartering out the yacht during periods unused by the owner is a further commercial incentive. It offers an attractive opportunity to cover running costs and partially compensate for the loss in value of the yacht.

The exact framework conditions should be considered in advance. A relevant cost factor when chartering a yacht in Spain is the matriculation tax.

MATRICULATION TAX

FOR PRIVATELY USED YACHTS:

Yachts in Spain are subject to 12 percent matriculation tax on the current value of the yacht upon registration. This applies to Spaniards as well as foreigners who are resident in Spain or are otherwise registered for tax purposes. If the privately used yacht is not registered in Spain or is less than 8 meters in length, the matriculation tax is not yet payable.

FOR COMMERCIALLY USED YACHTS:

All yachts that are used commercially, for example through chartering, are subject to the 12% registration tax. This also includes yachts that are 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 relatives, it is possible to apply for the matriculation tax to be suspended.

EXEMPTION FROM MATRICULATION TAX FOR PARTIAL PRIVATE USE

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

The yacht owner must be an EU citizen or a registered company based in the EU
The owner must not be resident or otherwise registered for tax purposes in Spain
There must be a transfer contract with a Spanish charter company

If these conditions are met, the yacht may be rented to the owner by the charter company. It is important to have a proper charter contract with the usual terms and conditions as well as demonstrable payment of the charter with payment of the applicable VAT (IVA). The charter fee may then be refunded to the owner against invoice - after deduction of the customary brokerage commission.

This is the only way to avoid the matriculation tax for partially private use. In all other constellations, there is a risk of back payments and high penalties.

CHARTER APPROVAL

The registration process for charter yachts can take several months, depending on various factors. New yachts and yachts already flagged in Spain are usually registered within a few weeks. For yachts under the flags of other EU countries, depending on the season, around two to four months must be allowed for registration.

REGISTRATION UNDER THE SPANISH FLAG:

For this purpose, acceptance is carried out by a Spanish expert. The necessary equipment and its service status as well as the correct programming of the radio with the MMI identification are checked. Used yachts must be lifted out of the water in order to document the condition of the hull photographically.

Under the Spanish flag, the charter yacht may be registered with crew or bareboat, i.e. without crew. When renting with a crew, the skipper must have a valid commercial license.

CHARTER LICENSE UNDER GERMAN FLAG:

In principle, two inspections are required here: by a German expert and an inspection in accordance with the Spanish specifications.

A so-called "safety certificate" is required for the charter approval with crew of pleasure boats and yachts from 8 to 24 meters in length. This is carried out by the BG Verkehr. Recently, it can also be approved directly on site in Mallorca.

However, if the German-flagged yacht is also to be rented bareboat - i.e. without a crew - a so-called "boat certificate" is required. This is issued by the "Wasserstraßen und Schifffahrtsamt". This certificate can also be obtained in Mallorca.

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

PREPARATION OF THE BOAT CERTIFICATE

The following devices are checked for presence, current validity date and function:

Mandatory equipment
Life rafts
Fully automatic lifejackets/150 N (if no solid vests / 150 N)
Fire extinguishers and fire extinguishing systems
Distress signals

In addition, the MMSI number must be entered in the VHF with GMDSS. Installed sound signal systems must be recognized by the Federal Maritime and Hydrographic Agency. The case number, CE sticker and the yacht name with home port are recorded photographically.

CHECKLIST: DOCUMENTS FOR THE CHARTER LICENSE

Purchase contract or invoice
Spanish approval (Certificado de Navegabilidad) / boat certificate or safety certificate under German flag
Proof of technical acceptance (ITB)
CE certificate in the original
Proof of paid matriculation tax or application for exemption
Proof of insurance incl. passenger insurance in accordance with legal requirements (ask your insurance broker)
If applicable, transfer contract (Contrato de Cesion) with a Spanish charter company
MMSI certificate
Certificates for the validity of the safety equipment

POSSIBILITIES AND OPPORTUNITIES

Various factors influence the financial and qualitative success of a charter yacht. They form the basis for a good long-term position on the charter market and satisfactory capacity utilization.

YACHT

New yachts are in demand on the market and are therefore easier to broker than older models. Yachts that are several years old can also be rented out well if they are in good technical and visual condition. Experience has shown that customers are more price-sensitive here; however, with day trips and a coherent price-performance ratio, top results can still be achieved.

PRICE

Attractive framework conditions are necessary in every price segment in order to achieve ideal capacity utilization. In addition to the charter price, other ancillary costs such as crew or cleaning can be shown. Pricing should be carefully considered in advance, as subsequent increases are difficult to enforce.

SERVICE AND SUPPORT

Guests who feel well looked after are likely to book the yacht again and recommend it to others. Professional customer care on site is crucial to the success of a yacht and ensures a consistently high occupancy rate. With bareboat charters, this includes a detailed briefing by the responsible skipper and his crew.

MARKETING AND BOOKING PROCESSING

Marketing a charter yacht via various sales channels is essential in order to generate inquiries. Fast processing of inquiries and comprehensive advice for customers create trust and increase the chance of a booking.

We have many years of experience in the yacht charter sector. If you are interested in purchasing or chartering a yacht, we are always at your disposal. We will explain upcoming processes and possible constellations and help you to save time and money. We will be happy to discuss the best pricing strategy and support you in the approval process. Give us a call or send us your inquiry using our contact form.

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This page is for information purposes only. There is no claim to completeness, correctness and topicality.