By Lucy Chabot Reed

Italian and Spanish authorities will seek extra taxes from visiting foreign yachts this summer.

In Italy, the tax affects anyone not born on Sardinia or who has been resident for tax purposes for less than two years, and who owns or sells villas and apartments located less than three miles from the sea, owns vessels more than 14m or lands on Sardinia in a private aircraft.

It is a new law introduced last year and thought to have been squashed. It passed on May 5 by a vote of 42-12 as part of the Sardinian regional council’s budget.

In Spain, the tax has been in effect since 1985, but is expected to be enforced more stringently on yachts this summer. See following story, “Spain’s matriculation tax excludes Valencia.”

According to reports in Italian newspapers, the Sardinian tax is being seen as a political move to bring more revenue to the regional territory, and as a sock at former Prime Minister Silvio Berlusconi, who owns seven villas on the island.

Here are the amounts, due once a year, to be charged to “pleasure yachts” visiting Sardinia, according to an English translation of the legislation. It was unclear if these amounts also apply to “commercial yachts.”

1,000 euros for boats 14-15.99m;

2,000 euros for boats 16-19.99m;

3,000 euros for boats 20-23.99m;

5,000 euros for boats 24-29.99m;

10,000 euros for boats 30-60m;

15,000 euros for boats larger than 60m.

The tax is due any time a boat reaches any port, landing pier or berth located in the regional territory between June 1 and Sept. 30.

For sailing yachts with auxiliary engine, the tax is reduced 50 percent. Boats coming to Sardinia to participate in regattas and pleasure yachts that stay the whole year in the regional port structures are exempt.

The tax also applies to aircrafts landing in the regional territory. For aircraft, the amounts are: 150 euros for aircraft that can carry up to four passengers; 400 euros for aircraft that can carry between five and 12 passengers; and 1,000 euros for aircraft that can carry more than 12 passengers.

The tax drew much debate in the regional council, including adjournments and last-minute attempts at filibustering. Regional Council Chairman Renato Soru, a supporter of the tax, called it “an act of justice and readjustment,” according to a report in Corriere Della Sera.  

“That’s how to kill off tourism,” replied Giorgio La Spisa, leader of the regional council’s Forza Italia group. “Thousands of people will be leaving Sardinia.”

Other press reports call the annual tax a direct hit on Berlusconi, who owns seven villas including Certosa, an 8,250-square-foot property and the largest villa in northern Sardinia. Its owner will now have to pay about 37,000 euros plus 7,500 euros in surtax for buildings less than 300m from the sea, the newspaper Corriere Della Sera reported.

Soru has said he expects the tax will raise more than 800 million euros, part of which he would use to preserve the environment, according to a report in The Sunday Times of London.

“Let’s tax the rich,” the newspaper quoted Soru as saying in January. “In most cases they are tourists who don’t spend even one euro in Sardinia and yet are heavy users of the services provided by the regional authority.” He estimated about 150,000 villas will be affected by the new tax.

According to The Sunday Times, the Italian government is considering an appeal to Italy’s constitutional court to have the new taxes thrown out.

Contact Editor Lucy Chabot Reed at lucy@the-triton.com. Special thanks to Alessandra Delbuono of Rossmare International for translating the Italian legislation.

Spain’s matriculation tax excludes Valencia

The following is a presentation made by Anne Sterringa, a charter broker with Camper & Nicholsons International in Palma de Mallorca, Spain, during a seminar at the Genoa yacht show in May. It has been edited for space.

By Anne Sterringa

 

If a yacht wants to charter in Spain, it needs a charter license and to pay the matriculation tax. These are actually two separate issues.

Every yacht that wants to charter in Spain needs a charter license, both Spanish yachts and yachts registered in other EU countries.

An owner or operator needs to comply with a series of requirements to get a charter license, the most important ones are:

 Tax registration in Spain

 Third-party liability insurance

 Official translation of the yacht’s registration

 Certificate of inspection to make sure the yacht complies with laws for prevention of contamination

 A Commercial Seaworthiness Certificate from flag state, with an official translation. For example, MCA certificate.

 There are also some duties.

All non-Spanish documents must be presented with an official translation. Once all the paperwork is complete, it can take between 10 days and four weeks to get the license from the Government Department of Transport. The license is usually valid for as long as the commercial seaworthiness certificate is valid.

Although this is a tedious procedure it is perfectly feasible for a yacht to get a charter license.

Matriculation tax

In Spain, there is a double taxation on cars, planes and yachts. Not only the VAT has to be paid, but on top of that a 12 percent matriculation tax.

According to Spanish law, the tax is due on every yacht, commercial or private, that is registered in Spain, used in Spain by a Spanish resident or used in Spain by an owner that has an establishment in Spain. 

If a yacht has a charter license, it will have always have a Spanish tax registration. That means that the owner/operator is established in Spain, and so the matriculation tax is due.

What happens if a yacht comes from another country to do a charter in Spain with embarkation or disembarkation in Spanish waters? Spanish customs interpret that if a charter starts or finishes in Spain, the owner or operator at that moment has an establishment in Spain and therefore the matriculation tax is due.

Commercially registered yachts under 15m are exempt.

Is this situation going to change? I personally have the impression that yes, the situation will change within the next one or two years.

For the first time, there are indications that various sectors of the Spanish society, public and private, are becoming aware of the potential of the yachting industry. This fall, there were various seminars about nautical tourism in the Balearics. During the last year, every boat show in Spain has organized round tables and seminars about yacht charter. The Spanish Institute for Tourism, Turespaña, wants to concentrate the coming five years specifically on attracting golf and nautical tourism. In the Balearics as well, the local government wants to attract high-quality tourism as an alternative to the all-inclusive package-tour tourism.

Recently, leaders of the Spanish megayacht industry have founded a Spanish Association for Super Yachts. This association can approach the government in Spain and lobby for the interests of the yachting industry as ECPY does in France.

Last but not least, the celebration of the America’s Cup in Spain is boosting the interest in yachting and at the same time makes it urgent for both the industry and politicians to find a solution as quickly as possible.

The 32nd Americas Cup

The America’s Cup is a high-profile event where both the private and the public sector make huge investments. The whole city of Valencia is being turned around: new marinas are being built, the airport is extended, the whole lay-out of the port has changed and highways are being improved.

I don’t think America’s Cup management or politicians have ever realized that the existing regulations regarding yachting and yacht charter would prove to be such an obstacle in finding spectator yachts. As we all know, many yacht owners are hesitant about sending their yachts to Spain.

AC management has been negotiating with government officials on all levels during the last year, and just last Friday (April 28) had a decisive meeting with head of customs in Valencia.

It has been officially decided that from now on, in Valencia, charter yachts berthed in one of the AC ports will be exempt of the obligation to register in Spain and will be exempt from the matriculation tax.

This rule is valid from now until the end of the Acts in July 2007. Not only during the races, but also during training, which means every day from now until July 2007. There is no distinction between EU and non-EU yachts. The one condition is that the yacht has secured a berth in either the VSM or the North or South marinas, which are the America’s Cup marinas.

Customs in Valencia will sign an official document for each yacht stating that the yacht is exempt of the matriculation tax. Customs will give a list of all the exempt yachts to the Spanish coast guard so that they will know who is allowed to charter.

The other big issue in Valencia is the number of guests yachts can take out. I think we have all received inquiries for AC charters and the majority of these inquiries are for corporate clients who want to take out more than 12 passengers.

A new official instruction is in place, as of April 7. It says that any spectator vessel that wishes to sail in the restricted area of the America’s Cup in Valencia must obtain an express authorization directly from the Valencia harbor master’s office.

Passenger ships with SOLAS International Certificates will be authorized to take out the maximum number of passengers that appear in their safety certificates. Recreational vessels – yachts – can get an exemption to take out more than 12 passengers, subject to having an exemption of their own flag state.

To get the exemption, it is necessary to present an original certificate from the yacht’s own flag state authority with an official translation.

The certificate should mention: construction date of the vessel, expiration date of the certificate, maximum number of passengers on deck, minimum crew that must hold STCW78/95 certificates, sailing limits if applicable, and minimum safety, fire safety and rescue equipment.

You also need a certificate from the insurance company to cover the excess passengers. This means that if the flag state issues an official exemption, the Valencia harbor master will accept this.

All exemptions are limited to the dates of the AC regattas, restricted to daylight hours and to the regatta perimeter. Cabins cannot be used during the trip, weather conditions must be favorable and the exact number of passengers will be registered with the maritime rescue service.

Yachts up to 500 GT will only get an exemption for a maximum of 35 passengers and yachts over 500 GT up to 50 passengers. Yachts under 24m will not get permission to take out more guests than normal.

Various flag states will issue the exemption, again, only for the dates and location of the America’s Cup regattas: Luxembourg, Malta, Madeira, St. Vincent and Grenadines, Marshall Islands and Isle of Man.

The Cayman Islands has said it will follow precedent set by Isle of Man but has not yet been asked to issue one, as far as I know.

Contact Anne Sterringa at +34-971-40-33-11 or asterringa@cnipalma.com.

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