Yacht Registration: Private and Commercial

Yachts can be registered for private use, or commercially for charter purposes.

Private yachts are registered with fewer formalities, being destined for personal use. Any vessel larger than 6m can be registered under the Malta flag. These yachts cannot be chartered or hired out to third parties.

The Commercial Yacht Code applies to vessels over 15m that are used for charter purposes and places certain technical requirements on the vessel. Commercial registration entails fiscal advantages in terms of the ability to set off VAT incurred in expenses against the VAT applicable on charters, assisting cash flow.

For smaller yachts wishing to operate commercially, the Small Commercial Yacht Code applies to yachts that are between 12-24 metres in length. These yachts may not carry more than 12 passengers.

The Passenger Yacht Code applies to yachts that meet the following criteria:

  • Operate commercially
  • Intend to carry more than 12 but less than 36 passengers
  • May not carry more than 200 persons
  • Do not carry cargo
  • Are engaged on international voyages

Such yachts are required to meet the applicable safety conventions, with a number of dedicated equivalencies, which take into account the size of the vessel and its operations (when compared to merchant ships, to which international conventions apply in full).

Yacht management

A yacht is a valuable asset that may be part of a company’s portfolio, or the single operating asset of that company.

The management of the yacht as an asset entails a dedicated service that ensures timely management of its requirements that are essential to ensure its smooth operation.

Yacht management services include the following:

  • Flagging and flag state regulation
  • Budgeting, accounting and expenses management
  • Provision of payroll software for crew management
  • 24/7 helpline for captains and clients
  • Sale/purchase assistance
  • Corporate administration services
  • Crew structures and payroll administration
  • Sourcing finance
  • Obtaining insurance quotes