Yacht Registration
We are in a position to offer our services in one of the most favourable jurisdictions for yacht registration in the world for yacht owners who are looking for the most favorable flag from the reduced tax implications point of view. This has been made possible by the latest circular issued by the VAT authorities in Cyprus thus creating a new scheme which allows for reduction in the VAT payable provided the yacht fulfills some requirements.
Some of the main requirements are the following:
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The yacht needs to be owned by a Cyprus company and be leased to either a legal or physical entity;
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The yacht needs to depart to Cyprus within a month from the date of the lease and remain in Cyprus for a specific period of time;
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The initial payment under the lease should be at least equal to 40% of the total value of the yacht;
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The maximum lease period should not exceed 48 months and the lease payments should be payable on a monthly basis.
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The lessor is expected to make not less than 10% of the total value of the yacht as profit.
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Please be adviced that for each specific case a ruling from the VAT Authority is required.
