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Dual Use for Private Yachts in Italy

Italy has introduced in 2014 the option to charter a "private yacht" on an occasional basis avoiding the commercial registration.

Owners no willing to operate their yachts on a fully commercial basis can adopt this solution, which permits them to use the yacht on a private basis, whilst offering the possibility to charter the yacht out to third parties for a maximum period of 42 days a year to minimise annual running costs without complying with the mandatory (and expensive) standards for "yachts in commercial use".

The requirements to be observed

  • The yacht must be registered in Italy for "private use".
  • The yacht must have a length greater than 10 meters.
  • Each "time charter agreement" must be evidenced in writing, using a standard form officially recognized (e.g. ISYBA-YOCC).
  • The Owner, before the start of each charter period, must send via mail to the Italian Authorities a notice that lists the details of each contract (eg: Charterer's details, charter period, port of delivery / redelivery, charter fees, crew list and so on)
  • The "port of delivery" must be in Italian territory (the cruising area may extend beyond the territorial waters Italian).
  • The payment of the Charter Fees must be made by bank transfer or by check.
  • At the end of the calendar year the Owner must pay a "Flat Tax" of 20% calculated on the total Charter Fees earned.
  • During the charter period the Owner may be on board as "Captain" (provided they possess a "boat license").
  • The Captain (if this function is not performed by the Owner) and the other crew members (e.g.: deck-hand, hostess and so on) are enrolled by the Owner and are paid by the Italian system of "Vouchers".

Additional notes

For VAT purposes, a taxable person is any individual, partnership, company or whatever which supplies taxable goods and services in the course of business.

  • It is not allowed the use of "Detaxed Fuel".
  • It is not allowed to use the system "VAT Exempt" on repairs, purchase of equipment and spare parts, supplies in generals.
  • The Owner can not advertise directly its proposals, but have to entrust that task to a Licensed Broker in Italy (say "Mediatore Marittimo"), not to a simple "Foreign Agent".
  • And much more ....

To learn more and to fully assess whether that possibility may be interesting you or not, contact us here:

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