Cyprus has a very attractive yacht leasing scheme that significantly reduces the level of VAT payable on a yacht purchase. Cyprus offers the most effective and low cost scheme available within the EU.
Our team is renowned for its expertise in this area and we have handled a variety of transactions involving high value vessels. The scheme offers certainty regarding your tax liabilities and is relatively simple to administer. We will take care of all ongoing administration needs over the life of the scheme.
The scheme utilizes a four-year leaseback system. The scheme effectively means that VAT will be payable at rates as low as 3.4% depending upon yacht length.
The VAT is payable in Cyprus and 40% must be paid at the outset of the scheme with the remainder being paid over the subsequent three-year term. At the end of the lease term the Yacht can be purchased by the Lessee at a VAT rate of 5% of the estimated market value. An EU VAT-paid certificate is then issued for the yacht by the VAT Commissioner.
Please contact us if you would like further information on the scheme and how you can benefit.