ECS Marine Services - Yacht Registration and Administration

ECS Marine Services specialise in registration and administration of vessels in both the Isle of Man and Gibraltar.

Yacht Registration in Gibraltar and the Isle of Man

Gibraltar is excellently equipped to service the yachting industry, whether small crafts or super yachts. Should you decide to avail yourself of the Yacht berthing at Gibraltar's three private marinas; Queensway Quay, Marina Bay and Sheppard's Marina are all capable of accepting vessels with drafts of up to 4.5 metres and can boast an extensive variety of bars and restaurants. However, Gibraltar has more to offer the yacht owner than just its berthing facilities. The Rock of Gibraltar is also a British Port of Registry which means that all vessels registered in Gibraltar fly the Red Ensign. Aided by a favourable tax regime and the lack of VAT, Gibraltar is one of the most attractive locations to register pleasure craft intended for use in European Union and world-wide waters.

Owners should be aware of the VAT consequences of owning and sailing a yacht in EU waters. Any pleasure yacht owned by an individual or company, which is resident in the European Union (EU) Customs Union, will have paid VAT on the purchase of the yacht. It will have to account to the VAT authorities of the Member State for VAT on any charters whether inside or outside EU waters. A VAT paid yacht will encounter no difficulties in sailing in EU waters, provided that the vessel is not chartered. NB. Pleasure yachts built prior to 1985 and in EU waters on 31 December 1992 are treated as having paid VAT.

Pleasure yachts in EU waters are subject to VAT on the cost of the vessel and any charters commencing and finishing in EU waters. However those pleasure yachts whose owner is non-EU resident or whose charter company is non-EU resident will be free from VAT on entering EU waters in the following cases:

• As long as the yacht is not in EU waters for more than six months in total in any twelve month period, it can apply for a Temporary Importation Certificate which gives it relief from VAT
• Any charter commences and finishes outside of EU waters.

There are therefore advantages of owning and chartering a pleasure yacht in Gibraltar

• Gibraltar is an EU territory but is outside of the Customs Union and therefore does not levy VAT.
• Gibraltar is a British port of registry.
• Gibraltar does not tax companies who trade outside Gibraltar (e.g. Charter companies).
• Gibraltar allows a wide range of qualified individuals or corporate bodies to own a registerable vessel including EU nationals, Gibraltar companies, or companies registered under the laws of other EU countries (as long as they have either a place of business or have appointed a representative person in Gibraltar).

Thought will need to be given as to whether a yacht should be registered in the name of an individual or through a tax efficient vehicle such as a Gibraltar company or trust. ECS International have developed a high level of sophistication in providing high quality service to those people wishing to use offshore jurisdictions for proper personal or corporate planning and business activities. Over the years we have gained substantial expertise in the use of many offshore jurisdictions around the world and have established very good working relationships with the authorities in these areas.

The Isle of Man Ship Registry

The Isle of Man has been involved in shipping for many years, with the first ship being registered in 1786.  The modern day Ship Registry was established in 1984 and in 2003 the “Megayacht Code” was released which has allowed the Isle of Man to become a centre of excellence for the registration and management of commercial and private yachts.  Superyachts (over 24 metres) must be for commercial use.

The high quality of the Ship Registry and its progressive outlook, new regulations, combined with the significant advantages of using the offshore environment make registration of superyachts or megayachts in the Isle of Man a natural choice.

The Gibraltar Register of Shipping

Gibraltar also has a highly successful Ship Registry which allows registration of both commercial and private vessels.  Private vessels over 24 metres in length may only be used for non-commercial use.

Benefits of offshore registration

Vessels registered in Gibraltar are held on the British Ship Register, whereas vessels registered in the Isle of Man are registered on the Isle of Man Register.  However the latter is a component part of the British Ship Register.  Vessels registered on either are entitled to fly the Red Ensign and have access to all British Consulates throughout the World.

Other benefits available include:

• Internationally accepted and well respected status of both Registries;
• Beneficial taxation treatment, including zero rated corporate tax and various VAT mitigation schemes available;
• Flexibility in requirements for Registered Owners including acceptance of Limited Partnerships;
• Availability of shipping mortgages under established law;
• No Annual Tonnage Tax charges;
• No Insurance Premium Taxes;
• Availability of experienced professionals and tailored financial products;
• 24-hour availability of senior staff available at the Registries;
• Highly competitive scheme of charges.

ECS Marine Services

Before registering a commercial or private yacht there are many important things to consider including:

• Ownership structure;
• Financing arrangements (if any) and the ability to obtain a marine mortgage in the planned port of registration;
• Cruising locations of the yacht and in particular will she visit or be based in European Union.  This matter has vital implications regarding VAT;
• If VAT is to be paid within the EU, the most efficient method and where the vessel owner is to be registered for VAT if appropriate;
• The various matters to be addressed to obtain a VAT registration and ultimately obtain a VAT Paid Certificate;
• The ongoing administration of the vessel including the appointment of a Representative Agent ashore;
• The basis upon which the management of the vessel is to be conducted including payment of supplier accounts, crew payroll, insurance, yacht accounting and liaison with regulatory authorities in the Port of Registration;
• Taking advantage of the beneficial taxation regulations within the Isle of Man and/or Gibraltar.
• The various locations available and the level of bureaucracy that may be encountered.   The authorities in both the Isle of Man and Gibraltar offer an efficient and friendly service.

If appropriate consideration is not given to all of the above there can be significant additional costs or legal consequences. 

ECS Marine Services work closely with the owner and his advisers to implement their plans and structures and to ensure the yacht is operated in an efficient manner and also complies with the requirements of the regulatory authorities.

Using our breadth of experience in this area and our extensive network of contacts, including direct access to the Ship Registries, we are able to ensure that both registration and the ongoing administrative requirements of yacht ownership run smoothly and without unwanted surprises.

Further details on the registration process and our other services can be provided on request.

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