Buying yacht in Spain Vat Fiscal value.etc.

[pandos]

I am in the process of buying a yacht in Spain. The boat was outside the EU for more than three years and is now deemed to have vat due. I have agreed that the seller will pay this vat before I buy it with a contribution from myself. Now I am hearing about Fiscal vaues and other fees and charges. The boat is on the Finnish registry and will eventually be under the Irish Flag. Does anybody have any experience in this area.

 

[Steve Clayton]

Where do you intend to base the boat?

 

[pandos]

Ireland.

 

[smee]

Spain has a system of Fiscal values on which taxes are charged. Unlike most countries who charge VAT and taxes on the actual value of item, the Spanish charge taxes on the Declared Value. This is extremely beneficial as it is fairly automatic that Values are a lot less than actual price, while I doubt is this is actually legal, it is general practice particularly with regard to property, but it certains seems to be the case with everything else too, and Spanish lawyers are more often than not party to it.
Of course the fiscal value placed on an item varies from item to item and whom is doing the transaction and what they think they can get away with, as very obvious discrepancies will no doubt bring the taxman along to check up on things!
In the case of boats, it may have its value already known and published by the customs in something which I believe is called the Bulletin (or equivalent in Spanish). If the boat is not in that it may be that a similar boat is used as a benchmark for value. The value put on it will then be taxable at 16%. As such it is likely to cost far less than the same boat would do in UK, or France.

 

[Paulka]

The above is correct as far as I know, ..... but paying IVA (VAT) induce the payment of the "Registration Tax" which amount 12% on a value assessed by the Department of Transport (some sort of road tax!).
The catch is that the value on which this tax is calculated can be widely different from the value on which the IVA is calculated.
And of course, the total amount of taxes is then nearer 30% than 16%.

Why not sail the yacht back to Ireland via Azores, and clear the VAT there?

Good luck.

Paul