Spanish Matriculation Tax

[thefatlady]

If you become tax-resident in Spain, by virtue of living there (ashore or afloat) for more than 182 days, your boat is liable to Spanish matriculation along with the associated 12% Matriculation Tax and both you and the boat having to pass the Spanish exams (possibly plus Wealth Tax). In the past, the tax has not been enforced, but times they are a-changing.

There are suggestions that, if the powers-that-be wish to be bloody-minded, they can base the tax on the residency of the boat alone. Think what that would do to Spanish marinas!

These two sites contain some information: web page and web page

Spainvia says:

"First and most importantly, a person staying in Spain for less than 6 months is not liable for wealth tax or re-registration of his boat and, as far as is known, they can leave their boat in a Spanish port, over the winter say, with no such liability. Whilst there is some doubt about this, all experience and evidence indicates that it is the individual's residency status which influences the tax situation - not the geographical location of the yacht."

They go on to say:

"When leaving a boat in a marina, say for the winter, it is probably sensible to leave it as very obviously de-commissioned. As a matter of good practice the log should show movements clearly and the time spent in Spanish waters. In the event of being challenged, the onus of proof is on the boat owner who is advised to keep marina receipts, proof of air travel etc out of Spain. It is possible to have the boat precintado or sealed by the Customs as proof that it is not being used to follow the less than 182 day rule."

Anyone have any solid information?

 

[Hurricane]

John and I have been discussing this privately via email.

I would like to know if there are any cases of a boat having to "be matriculated" into Spain with the owner registered outside Spain or more specifically if the boat is British registered and the owner has a British tax status.

As John says if this were to happen it would have major consequences for cruising in the Med. We would all have to have Spanish qualifications and speak fluent Spanish to begin with.

 

[Dave_Snelson]

...and more stupid things than that have been known to happen. Try their property laws out for size and maybe have a word with Magnum about Spanish authorities.

Spain...good for holidays but little else, when it comes to your money.

 

[Lozzer]

Spain is Spain... But still thousands flock here to live every year. OK some of them return to where they came from.

I understand that the Balearics have been hit with this matriculation but I thought it was just for the charter yachts!

Ask Clive at Suncoast he has been here for years runnning a sea school (plug for you clive save you doing it). He also charters (theres another) so he should know all about tax situation.

My view would be to keep your head down, make sure you have paid VAT somewhere or have it justifiably VAT not paid and you should be ok.

With regard to run ins with the law as with anywhere courtesy will go a long way. be rude or refuse anything and suffer teh consequences. The police here do not suffer anyone who does not cooperate.

 

[thefatlady]

This has nothing whatsoever to do with VAT. It is a separate and additional tax. If you buy a new boat in Spain, you can be hit with 16% VAT plus 12% MT.

[ QUOTE ]
I understand that the Balearics have been hit with this matriculation but I thought it was just for the charter yachts!

[/ QUOTE ] I know of a British owner of a British registered boat in Mallorca who is tax-resident in Spain, does not charter, and has been hit. He has to pay Matriculation Tax and is no longer allowed to take the boat out. They are apparently now enforcing a rule which was previously ignored.

The question now is not whether it applies solely to charter boats (it doesn't), but whether it could be applied to all boats kept in Spain, unless the owner can categorically prove that he is non-resident.

 

[Deleted User YDKXO]

As I understand it, the matriculation tax has been levied on charter boats, even if registered outside Spain, but only in excess of 15m LOA as stated on the registration document

 

[Steve Clayton]

[ QUOTE ]
If you buy a new boat in Spain, you can be hit with 16% VAT plus 12% MT.

[/ QUOTE ]
I would suggest not. Buy a new boat in Spain as Spanish flagged and I don't see how MT figures in the equation.
As this is in the mobo forum and I'm a raggie I'll just sit back and continue watching the discussion /forums/images/graemlins/grin.gif
Didn't know that if you pay the G5 by DD then a 20% discount can be applied - must check on that.
www.seraph-sailing.com

 

[Hurricane]

I understand the tax for a Spanish tax resident and for a boat that is being used for charter in Spain but I've yet to hear of a British resident tax payer (non Spanish tax resident to be precise) with a British registered boat get caught for the tax.

Does anyone know of a British tax resident with a British registered boat having to pay the matriculation taxes.

Remember, it goes deeper than just the tax - you cant use your boat until you're qualified.

 

[thefatlady]

I stand to be corrected, but read this:
From http://ec.europa.eu/taxation_customs/resources/documents/tax_inventory_17_en.pdf
It's 480 pages long!

"Chargeable Event
The first definitive entry of new or used vessels and boats for pleasure and water sports, with an overall length of more than seven and a half metres, in the register of vessels."

From Spainvia:
"It is important to understand that, in Spain, apart from the VAT to be paid on a means of transport (which includes a boat) there is an additional "matriculation tax" of 12% to be paid on re-registration. In other words, if a boat does not have proof of having paid VAT or proof of exemption it could be charged 28% tax on it's value and the owner could also be charged wealth tax. Do not confuse liability for VAT with matriculation tax or with wealth tax. These are three separate matters."

 

[thefatlady]

As Mike asks, [ QUOTE ]
Does anyone know of a British tax resident with a British registered boat having to pay the matriculation taxes

[/ QUOTE ]
That is indeed the question.
The information in my original post implies that this is possible if the Spanish want to be bloody-minded enough.

 

[Hurricane]

What surprises me is the scale of this.

There seem to be other questions here as well.
Why are there so many boats for sale as ex vat? Surely, they cant all on some sort of deferment scheme?

I suggest that most are owned by people who are being caught for local Spanish taxes - probably working locally or just staying over the 183 days. The boats seem to be British registered - I suppose so that they dont have to pay the matriculation tax etc. If this IS the case they are breaking the rules and deserve to get caught by the authorities.

The other alternative would seem to be that they are doing some form of commercial work (chartering perhaps) but I cant see how they would be allowed a licence. What I've read, the Spanish will only issue a charter licence to a British registered boat for 5 months. Everything implies that full chartering requires the boat to be Spanish registered - in which case it will have to pay MT anyway.

I suspect that the whole thing is a complete mess and thet mostly boats and people get away without paying either the MT or the VAT

Come on - there must be some experience out there.

 

[puskin]

Another source of information would be
THE ISLANDER a Balearic monthly newsletter their are on the web

 

[Steve Clayton]

[ QUOTE ]
What I've read, the Spanish will only issue a charter licence to a British registered boat for 5 months. Everything implies that full chartering requires the boat to be Spanish registered

[/ QUOTE ]

My Spanish licence to charter a UK flagged boat is 2 years. Issued by the Captain of Alicante port. Can't say what it might be in another Province.

I maintain UK registration. Only query I've had in last 18 months is if am I allowed to carry Spanish residents. Checked with my Historia and she confirmed I can take out anyone.