Tax on yacht purchase ( round 2)

[pcatterall]

Thanks all for the advice on buying a yacht in UK to use in Spain
We were looking at a yacht in Spain and I specifically asked about VAT below is the vendors reply

"The EU tax is not paid, although it’s easily registered to a Polish flag, then you don’t have to pay the EU tax. Which can be done from here, otherwise the boat has to be moved every 18 months to a non EU country, ie Gibraltar."

I do see lots of adverts for yachts where the vendors say registered in Poland I don't understand the issue of Polish registration and EU VAT ?! The yacht is a 2005 Legend 306. I will value your advice on this!

 

[Tranona]

A non EU VAT paid boat owned by a non EU resident and registered outside the EU can gain Temporary Admission for 18 months. It then has to leave the EU and re-enter for a further 18 months. You can do this with a boat you nuy in the UK or you can buy one that is already in Spain under TAQ, although you (or the broker) will have to ensure that local customs will issue the boat with 18 months under TA if you buy it. You can register it on the SSR if you are UK resident. Suggest you don't get involved with Polish registration, not least because it is considered EU and therefore not acceptable for TA. Many boats are kept in Spain (and elsewhere in the eU by non residents under TA. Whether you want to do this depends on finding a way of complying with the 18 months renewal. EU law does not determine how the leaving/re-entry process is managed as it is left to each state to manage, which can also mean local variations as local customs often have autonomy.

For hassle free ownership of a boat in Spain, best to buy a Spanish VAT paid and registered boat as you will have clear documents and no restrictions. You can register it on the SSR. Most important is that there is no barrier to selling in the EU when the time comes.

 

[pcatterall]

A non EU VAT paid boat owned by a non EU resident and registered outside the EU can gain Temporary Admission for 18 months. It then has to leave the EU and re-enter for a further 18 months. You can do this with a boat you nuy in the UK or you can buy one that is already in Spain under TAQ, although you (or the broker) will have to ensure that local customs will issue the boat with 18 months under TA if you buy it. You can register it on the SSR if you are UK resident. Suggest you don't get involved with Polish registration, not least because it is considered EU and therefore not acceptable for TA. Many boats are kept in Spain (and elsewhere in the eU by non residents under TA. Whether you want to do this depends on finding a way of complying with the 18 months renewal. EU law does not determine how the leaving/re-entry process is managed as it is left to each state to manage, which can also mean local variations as local customs often have autonomy.

For hassle free ownership of a boat in Spain, best to buy a Spanish VAT paid and registered boat as you will have clear documents and no restrictions. You can register it on the SSR. Most important is that there is no barrier to selling in the EU when the time comes.

Many thanks again! Your advice is the way we will go! .................no messing without clear Spanish papers!!

 

[Irish Rover]

The EU tax is not paid, although it’s easily registered to a Polish flag, then you don’t have to pay the EU tax. Which can be done from here, otherwise the boat has to be moved every 18 months to a non EU country, ie Gibraltar."

I think what the vendor is implying is that you're unlikely to be caught if you have an EU flag. Bullcrap. Buying a VAT paid boat is the clean way to go as recommended by the expert @Tranona . On the other hand, if you find a good vat unpaid boat at a favourable discount, taking it to North Africa once every 18 months shouldn't be an inconvenience depending in which part of Spain you're going to base it.

 

[seeSimon]

Many thanks again! Your advice is the way we will go! .................no messing without clear Spanish papers!!

A non EU VAT paid boat owned by a non EU resident and registered outside the EU can gain Temporary Admission for 18 months. It then has to leave the EU and re-enter for a further 18 months. You can do this with a boat you nuy in the UK or you can buy one that is already in Spain under TAQ, although you (or the broker) will have to ensure that local customs will issue the boat with 18 months under TA if you buy it. You can register it on the SSR if you are UK resident. Suggest you don't get involved with Polish registration, not least because it is considered EU and therefore not acceptable for TA. Many boats are kept in Spain (and elsewhere in the eU by non residents under TA. Whether you want to do this depends on finding a way of complying with the 18 months renewal. EU law does not determine how the leaving/re-entry process is managed as it is left to each state to manage, which can also mean local variations as local customs often have autonomy.

For hassle free ownership of a boat in Spain, best to buy a Spanish VAT paid and registered boat as you will have clear documents and no restrictions. You can register it on the SSR. Most important is that there is no barrier to selling in the EU when the time comes.

Q. If you base a Spanish registered boat in Spain, do you not then have to comply with all Spanish regulations, including safety equipment and operator qualifications?
Do you need a Spanish flag operators qualification, or are RYA qualifications acceptable to Spanish authorities?

 

[Tranona]

Q. If you base a Spanish registered boat in Spain, do you not then have to comply with all Spanish regulations, including safety equipment and operator qualifications?
Do you need a Spanish flag operators qualification, or are RYA qualifications acceptable to Spanish authorities?

If the boat is UK registered then no, although it is helpful to have an ICC

 

[billskip]

. If you base a Spanish registered boat in Spain, do you not then have to comply with all Spanish regulations, including safety equipment and operator qualifications?

I belive you do yes.

Do you need a Spanish flag operators qualification, or are RYA qualifications acceptable to Spanish authorities?

I belive you need Spanish ticket.
RYA ICC is only for non resident bareboat charter ..or non resident with non Spanish registered boat....I think..

Also the OP should be aware that they maybe liable for a 4% tax if buying a Spanish flagged boat or a boat that has an owner that is a Spanish resident.

 

[seeSimon]

If the boat is UK registered then no, although it is helpful to have an ICC

With all due respect...this is irrelevant.

 

[Irish Rover]

With all due respect...this is irrelevant.

With further respect, how is it irrelevant. You quoted thus referenced #2 in which @Tranona advised buying s Spanish VAT paid and registered boat and then reregistering it on the SSR.

 

[riverliver]

If it helps a friend bought new in Europe and keeps the boat in majorca on TA basis. Just renewed it and was v simple. Use an agent to take it out into international waters to record "export" and then bring it back. seemed very hassle free and apparently worth the palaver for the money saving. Apparently a well established process on the island

 

[seeSimon]

With further respect, how is it irrelevant. You quoted thus referenced #2 in which @Tranona advised buying s Spanish VAT paid and registered boat and then reregistering it on the SSR.

In the related post we were postulating a Spanish boat, in Spain, I believe? Possibly to be owned/ operated by a UK national?

 

[Irish Rover]

In the related post we were postulating a Spanish boat, in Spain, I believe? Possibly to be owned/ operated by a UK national?

What related post?

 

[Tranona]

In the related post we were postulating a Spanish boat, in Spain, I believe? Possibly to be owned/ operated by a UK national?

That is irrelevant unless it is kept on the Spanish register. If it is removed and put on the SSR (the OP is UK resident) then he can use it without any Spanish qualifications. Many UK owned boats in Spain on this basis. It may well be different if he is a Spanish resident, but he is not. He previously owned a UK registered boat which was originally from the UK but is now an "EU VAT status" boat and had no difficulty using it.

There is nothing to stop him buying an EU VAT status boat (does not have to be Spanish owned), registering it in the UK and using it in Spain

 

[billskip]

In the related post we were postulating a Spanish boat, in Spain, I believe? Possibly to be owned/ operated by a UK national?

If it's Spanish registered, or the frequent user( not necessarily the owner)is a Spanish resident (even if he is a UK national) the boat falls under Spanish regulations in Spanish waters.
If it's not Spanish registered and the frequent user is resident in Spain then it falls under Spanish regulation in Spanish waters.