06 June 2018
Earlier this year, the Yachting team and I arranged the importation and definitive payment of Value Added Tax (“VAT”) in Spain for a yacht registered in the Isle of Man. Below is a brief case study of the work we delivered.
The client
We began working with this client a number of years previously when we established an Isle of Man structure for the purchase of a yacht to be operated on a commercial charter basis. As the client entered retirement, he decided he no longer wanted to conduct commercial charters but rather use the asset to enjoy long vacations with family and friends. He wished to purchase the yacht from the Isle of Man company to be used for private purposes while located in Spain.
The objective
The client wanted to be able to use the yacht privately in free circulation in Spanish waters, with importation status and with VAT liabilities paid. The overarching objective for the client was to have a smooth and easy transfer of ownership from the holding company to himself personally.
Our role
We arranged for the relevant documentation to be submitted to the VAT authorities in Spain to enable the owning entity to be VAT registered. Upon receiving a full valuation of the yacht, the VAT amount due (21% of the value) was paid to the Spanish authorities and the VAT Paid documentation was issued. We then successfully restructured the yacht ownership into the client’s personal name.
Blánaid Higgins is a Manager for First Names Group in the Isle of Man and part of our specialist Private Client Yachting and Aviation team. Blánaid is responsible for delivering exceptional client service with regard to the management of commercial and pleasure superyachts and private aircraft.
This article has been issued by First Names Management Limited on behalf of certain companies that form part of First Names Group. The article has been prepared for general circulation to clients and intermediaries, and does not have regard to the particular circumstances or needs of any specific person who may read it. Nothing in this article constitutes legal, accounting, tax or investment advice.
The information contained in this article has been compiled by First Names Management Limited and/or its affiliates from sources believed to be reliable, but no representation or warranty, express or implied is made to its accuracy, completeness or correctness. All opinions and estimates contained in this report are judgements as of the date of publication, and are provided in good faith but without legal responsibility.
