November 1st 2013

Remove of the Spanish registration tax for charter yachts

Remove of the Spanish registration tax for charter yachts

On October 17th of 2013 the Spanish Congress of Deputies approved the bill 121/000054 which decreed the elimination of the 12% tax for the first registration of pleasure vessels or nautical sports.

An unfair and discriminatory tax for a business activity that takes place in many parts of the world but it only applied in our country. Now with this new decree, vessels which are intended exclusively for charter activities and with more than 15 meters length, they will be able to practice this activity without having to pay this high tax.

This initiative sees the light after many years of struggle by the nautical professionals from the Spanish Marine National Association (ANEN) that has defended its status as an industry and business sector in front of government and business organizations.

Long time ago a resolution of the European Commission highlighted the difference in registration tax applied in Spain to recreational craft since it violated the free movement of goods and services provision.

Although the registration fee will be retained for pleasure yachts intended for private use (over 8 meters), the results of tax elimination in charter activity will certainly be a reference to continue adapting our taxation sector according to our neighbouring countries.

The sector of recreational boating is considered one of the fastest growing and competitive sectors, both for its ability to develop marine tourism as well as its own activity. That is why this new resolution has been so well received as it will allow Spain to participate in this market on the same terms as the rest of Europe and in that way expand and improve charter activity in Spain.

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