We are pleased to report that the Spanish Congreso de los Diputados have today formally adopted Bill 121/000054 which contains legislation ending the imposition of matriculación tax currently payable on the hull value of yachts over 15 metres in length that charter in Spanish waters.
The bill has to be published in the official government gazette to become effective which should hopefully now take only a matter of days.
Spain has historically levied an additional tax on certain means of transport in addition to VAT known as Impuesto Especial sobre Determinados Medios de Transport which is more commonly known as ‘matriculación tax’.
The tax consists of a one-off payment of 12% on a yacht’s total value which represents a considerable burden on acquisition particularly when added to the Spanish VAT which is also payable at the prevailing rate (currently 21%).
The tax has resulted in yacht charter activity in mainland Spain and the Balearics remaining subdued in comparison to the activity taking place in the rest of the Mediterranean with the majority of charter yachts avoiding Spanish waters for fear of the imposition of the tax.
It should be noted that whilst the removal of matriculación tax currently payable on the hull value of yachts over 15 metres in length that charter in Spanish waters is welcomed it is still necessary for the owners of yachts chartering in Spanish waters to hold a Spanish fiscal/VAT registration, Charter Licence and the relevant Tax Exemption Certificate in order to charter legally.