Shipping and Yachting FAQs

Who is eligible to own a Maltese registered yacht?

Yachts may be registered under the Maltese flag by:

• Maltese individuals and Maltese registered companies; 
• EU citizens and EU registered companies; and
• Non-EU residents and entities.

In the case of a non-EU residents, a Resident Agent shall need to be appointed to act as the main point of contact between the international owner and the Maltese authorities. The resident agent shall be responsible to sign and file all declarations and forms with the Maltese authorities and departments on behalf of the international owner and to act as the judicial representative of the international owner for judicial proceedings in Malta.  

The resident agent shall also have the following powers:

• Sign and file, on behalf of the international owner, applications, declarations, notices, returns and any other document required in terms of Maltese law;
• Apply, on behalf of the international owner, for the registration of a ship or the closure of register of a ship, and to perform any ancillary act in relation thereto;
• Pay all relative fees and taxes payable in terms of Maltese law;
• Do, on behalf of the international owner, all other things as may be considered conducive or ancillary for the registration of a ship under the Merchant Shipping Act or for the maintenance of such registration;
• Do, on behalf of the international owner, all other things as may be considered conducive or ancillary for the cancellation of the registration of a ship under the provisions of the Merchant Shipping Act;
• Authenticate documents issued by the international owner.

What is the procedure for registering a vessel?

Vessel and Yacht registration in Malta is completed in two stages: Provisional Registration (valid for six months) and Permanent Registration. 

Provisional registration requires submission of an application, supporting documentation, and payment of registration fees and annual tonnage tax. Additional documents (such as deletion certificates from previous registries) must be provided during this period. Extensions may be granted if required. 

Permanent registration follows verification of all documentation and may require vessel inspection. Annual renewal applies once permanent registration is issued. 

For more information you can visit our pages Ship Registration process and Yachting Registration process. You can all contact us for more information. 

Bareboat Charter Registration 

Maltese law permits bareboat charter registration both into and out of Malta, provided the foreign registry is compatible. Under a bareboat charter, the charterer assumes operational responsibility for the vessel but cannot sell or mortgage it. 

During the charter period, the vessel operates under the temporary registry, while ownership and mortgage rights remain with the underlying registry. Registration procedures and fees are equivalent to standard vessel registration. 

Is it possible to convert a commercial yacht to a pleasure yacht, or vice versa?

Maltese guidelines allow yachts to convert between commercial and pleasure status. Conversion requires surrender of the existing Certificate of Registry and issuance of a new one reflecting the updated status. 

Where a yacht previously maintained commercial certification, simplified declarations may apply. Otherwise, full surveys and compliance with the Commercial Yacht Code are required. Authorities recommend maintaining commercial standards to facilitate future status changes.

Can a non-EU, non-VAT-paid yacht be used in the EU for private (pleasure) purposes?

A non-EU, non-VAT-paid yacht may, in certain circumstances, be used within EU waters for private purposes without immediate payment of EU import VAT. This is typically subject to specific customs regimes and strict conditions, including use and duration of stay in EU waters.   

How does the importation of a yacht into the EU work, and is this the same as paying VAT? 

The importation of a yacht into the EU is a customs procedure that allows the yacht to enter free circulation within the EU. While import VAT is generally payable at the point of importation, importation and VAT payment are distinct concepts and may be subject to different treatments or reliefs, depending on the circumstances. 

The correct approach depends on the yacht’s intended use and ownership structure. 

Can a privately owned yacht registered under the Maltese flag benefit from import VAT deferment?

Import VAT deferment mechanisms are generally linked to the commercial use of yachts and specific VAT registrations. Private yachts may not automatically qualify for such arrangements, even if registered under the Maltese flag.  

Therefore, the applicability of any deferment should be assessed on a case-by-case basis. 

Why does a vessel need to be registered for bare-boat chartering? 

A charterer may be required to temporarily register the ship in a foreign registry other than the one in which it is currently registered. Upon this registration, the vessel shall temporarily fly and operate under the supervision of the foreign registry and the original register (also referred to as the ‘underlying registry’) shall only regain jurisdiction and control over the vessel upon the termination of the bareboat charter registration. Notwithstanding this shift in control, the underlying register shall still retain control over matters regarding title over the ship and mortgages.  

Maltese law permits for bareboat chartering registration both into and out of Malta. Therefore, it is possible for a foreign vessel to be bareboat charter registered under the Malta flag and also for a Maltese vessel to be bareboat charter registered under a foreign flag. What is important is that the Maltese and the foreign register are compatible registers. The process for bareboat charter registration in Malta is similar to the normal registration procedure, while fees for registration are the same as those applicable for normal registration.  

Is it possible to convert a commercial yacht to a pleasure yacht, or vice versa?

Although Maltese law is rather silent on changing the status of a yacht in this manner, Transport Malta (‘TM’) issued guidelines regarding changing the status of a yacht from a commercial to a pleasure yacht in the Commercial Yacht Code (‘CYC’). To change a yacht’s status from commercial to pleasure, the applicant, whether the owner or manager of the ship, must supply their confirmation that they will withdraw the Certificate of Registry issued in favour of a commercial yacht upon receipt of the certificate evidencing the status of the vessel as a pleasure yacht. The owner (or manager) will then have to return the previous Certificate of Registry indicating a commercial status to the administration. The documentation necessary for a yacht to maintain its commercial status shall continue to be held by the Master of the vessel. 

The application process to change from a pleasure to commercial yacht is similar to the above process and while the owners or managers must confirm that they will surrender the certificate to the registry upon receipt of the updated one, further processes have to be followed, this depending on whether the yacht was previously registered as a commercial vessel or not. If a vessel was previously registered as a commercial yacht and it has continued to maintain its surveys and certificates, it shall only require declarations by an appointed surveyor or classification society to this effect, and a declaration by the Master confirming that as from the last periodical survey, there were no damages sustained by the vessel which would result in the Certificate of Compliance to Trade as a Commercial Yacht, the Class Certificate and any other applicable certificates being rendered invalid. 

On the other hand, if the vessel that did not maintain its certificates, it shall require completion of the surveys and reports until it is confirmed by an appointed surveyor or classification society that it conforms with the requirements set out in the CYC. Upon completion of the above, TM shall then confirm whether these requirements have been met and issue a Certificate of Compliance to Trade as a Commercial Yacht. It is noteworthy that TM’s guidelines recommend that yachts which have changed their status from commercial to pleasure yachts maintain the requirements for commercial yachts (as stipulated in the CYC) so as to facilitate any future changes in status.

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