{"id":4974,"date":"2021-05-25T00:24:51","date_gmt":"2021-05-25T00:24:51","guid":{"rendered":"https:\/\/emprendix.com\/?p=4974"},"modified":"2025-02-18T16:42:20","modified_gmt":"2025-02-18T16:42:20","slug":"purchase-a-yacht-in-palma-de-mallorca","status":"publish","type":"post","link":"https:\/\/emprendix.com\/en\/purchase-a-yacht-in-palma-de-mallorca\/","title":{"rendered":"Purchase a yacht in Palma de Mallorca – Tax and Law"},"content":{"rendered":"

Are you considering buying a yacht in Palma de Mallorca<\/strong>? Owning a boat in Palma is a dream for many, but it comes with certain challenges. One of the most important aspects is understanding Spain\u2019s complex tax regulations on pleasure boats to avoid unexpected surprises.<\/p>\n

At Emprendix, we specialize in the yachting sector. As an accounting, legal, and labor advisory firm in Mallorca, we can assist you in every step of the purchasing process. But before diving into the details, let\u2019s look at some key legal considerations when buying a new or second-hand yacht in Mallorca<\/strong>.<\/p>\n

If you need further information, please visit our website: www.emprendix.com<\/a>.<\/p>\n

Buying a Boat in Palma de Mallorca: What You Should Know<\/strong><\/h2>\n

Yachts in Palma de Mallorca and throughout Spain are considered luxury assets and are taxed accordingly. With its favorable climate, stunning beaches, and well-protected harbors, Mallorca is a true paradise for boat lovers. However, before making your purchase, you should be aware of some critical considerations.<\/p>\n

What are the main aspects to keep in mind when buying a boat?<\/strong><\/p>\n

When purchasing a yacht in Palma de Mallorca\u2014or anywhere in Spain\u2014you must distinguish between acquiring a new or second-hand vessel. Additionally, it is crucial to determine the place of registration and the ship\u2019s flag, as these factors will influence taxes, legal obligations, and future costs.<\/p>\n

\"\"<\/a>Yacht purchase in Palma de Mallorca.<\/strong><\/h2>\n

Spanish Law establishes that all vessels from\u00a02.5 meters long<\/strong>\u00a0must be registered in the Register of Ships of the Directorate General of Merchant Navy, which is the official body for yacht registration in Palma de Mallorca. This national Registry has local branches in coastal cities as Palma de Mallorca and, upon request, it can provide information about vessels and owners.<\/p>\n

A boat cannot wave two different flags. Then,\u00a0if your boat is flagged in another country<\/strong>, and you want to transfer that registration to Spain, you will be required to first flag down your boat at the Register of Ships of the country of the current flag. This is procedure is mandatory in order to properly register the boat in Spain and must be performed once the sale is finalized.<\/p>\n

Under Spanish law, it is not required to enter into a sales contract in order to purchase a\u00a0second-hand yacht in Mallorca<\/strong>, but it is, nevertheless, highly advisable. A contract allows you to create a record of all sale details: boat and owner identification, price, form of payment, boat items and equipment inventory, etc. and it is certainly the best possible evidence of your ownership over the boat.<\/p>\n

If the seller is a corporation<\/strong>\u00a0and VAT applies to this purchase, an invoice is then necessary for the transaction. This same invoice and\/or contract can also be used in the administrative procedure for the change of yacht ownership. Equally important, this invoice also works as a guarantee for buyer and seller in the event of damage and\/or failure, or in the application for flag removal.<\/p>\n

Yacht warranty in Palma de Mallorca.<\/strong><\/h2>\n

Under Spanish law, the purchase of a boat is a guaranteed transaction that allocates rights and obligations to buyer and seller. If the boat is new,\u00a0a 2 year warranty applies;<\/strong>\u00a0if the boat is second-hand, and the seller a company, the same 2 year warranty period is prescribed by law. Finally, if the transaction involves a large boat, contracts are also commonly subjected to English law.<\/p>\n

For second-hand boats the applicable warranty period is dependent on the nature of the contracting parties, particularly where the seller is an entrepreneur.\u00a0If both parties are private individuals, and not companies, the seller must provide, by law, a 6 month warranty<\/strong>\u00a0to the buyer as reassurance against potential latent defects in the vessel, i.e., pre- existing defects and\/or failures that are previous to the sale and were not detected at the time of the transaction.<\/p>\n

These potentially hidden defects are important to the transaction as they may affect the terms and conditions of the contract and the actual sale itself.\u00a0If latent defects arise, during the 6 month yacht warranty<\/strong>, the buyer is then entitled to withdraw from the contract or to renegotiate the price with the seller.<\/p>\n

If you hire a\u00a0yacht broker in Palma de Mallorca<\/strong>, you should know that the vessel warranty usually applies for the seller, not the broker, unless this professional acts as the vessel seller.<\/p>\n

Yacht taxes in Palma de Mallorca: VAT and ITP (Property Transfer Tax).<\/h2>\n

If you buy a\u00a0new yacht in Palma de Mallorca<\/strong>, it will be necessary that the seller issues VAT invoice, currently at 21% rate but expected to peak 23% shortly; if it is a\u00a0second-hand yacht in Palma, and the seller a company<\/strong>, a VAT invoice also applies. On the other hand,\u00a0If the buyer is foreign company<\/strong>, VAT is payable in the country of boat registration; but if that vessel is for\u00a0private use of residents in the European Union, VAT is payable in Spain<\/strong>.<\/p>\n

A boat transaction also pays Property\u00a0Transfer Tax (ITP)<\/strong>, due to the change of ownership in the Spanish Register of Ships. Therefore, once VAT is paid, if the ship remains registered in Spain, this tax duty, amounting to 4% of boat value, will apply.<\/p>\n

You should be aware that Property Transfer Tax always applies to any yacht purchase where\u00a0no VAT is applicable<\/strong>. Thus,\u00a0any acquisition of foreign vessels in Palma de Mallorca<\/strong>\u00a0and, anywhere in Spain, as well as\u00a0vessel transactions between foreign parties<\/strong>\u00a0must always meet this tax liability.<\/p>\n

Yacht registration tax.<\/strong><\/h2>\n

There is also a special tax on some transports applicable for yachts in Palma de Mallorca:\u00a0the registration tax<\/strong>. This Spanish tax applies\u00a0to vessels from 8 meters long, registered in Spain<\/strong>.<\/p>\n

If the boat is to be registered in another country<\/strong>, it then will be necessary to first apply for flag deregistration in Palma de Mallorca. This procedure has to be performed in any of the country\u00b4s\u00a0capitanias maritimas<\/strong>\u00a0which are the local sailing authorities.<\/p>\n

Ways to avoid yacht taxes in Mallorca.<\/strong><\/h2>\n

Non-tax residents in Spain<\/strong>\u00a0can easily avoid the payment of ITP and VAT depending on the residency status of the buyer and whether he\/ she is EU resident or not.<\/p>\n

\u201cMatricula tur\u00edstica\u201d<\/em>\u00a0is a tax option which allows an\u00a0EU resident, a national from any EU country residing in Spain,<\/strong>\u00a0to benefit from exemption on registration tax, but not from VAT, which applies to all EU residents.\u00a0If the yacht buyer in Palma de Mallorca is a non-EU citizen<\/strong>, he\/she will be exempted from the payment of both registration tax and VAT, as long as the boat does not sail Spanish waters for any period of 6 months or longer during any complete year.<\/p>\n

Yacht insurance in Palma de Mallorca.<\/strong><\/p>\n

Under Spanish applicable law for yacht insurance, RD 607\/1999,\u00a0any boat over 6 meter long, boat in water,<\/strong>\u00a0shall hold a\u00a0third party liability insurance for yachts in Mallorca<\/strong>. Failure to comply with this obligation can be heavily fined.<\/p>\n

For more information, please contact us in\u00a0www.emprendix.com<\/a>.<\/p>\n<\/div><\/div><\/div><\/div><\/div>\n","protected":false},"excerpt":{"rendered":"

Legal and tax considerations need to be considered by anyone buying a yacht.<\/p>\n","protected":false},"author":1,"featured_media":4976,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[54],"tags":[],"class_list":["post-4974","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-set-up"],"yoast_head":"\nPurchase a yacht in Palma de Mallorca - Law and tax<\/title>\n<meta name=\"description\" content=\"Legal and tax considerations that need to be considered by anyone buying a yacht in Mallorca. 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