The cost to enjoy a Balearic Island yacht charter vacation should soon be going down. The Spanish government announced that they have ceased implementation of the IEDMT (Impuesto Especial sobre Determinados Medios de Transporte). In other words, better known in the yachting industry as the Matriculation Tax.
COST OF TAX
First introduced in 1992, the tax equaled up to 13.7% of a vessel’s value. It applied to all yachts over 15 meters used commercially. For instance, charter vessels.
In addition to the standard VAT imposed on charters, the cost to own a superyacht or rent a yacht in Spanish waters became prohibitive. This is when compared to other European Union countries.
PROTESTS BY THE MARITIME INDUSTRY
Protests by the Spanish and Mediterranean maritime industry have been ongoing ever since. Numerous reports outlined how the tax was causing economic harm, not benefit, to employment and economic activity in Spain. Some studies showed losses to the economy of 10 million euro per weekend alone, in high season.
RESCINDING THE TAX
For years, Spain ignored the calls to rescind the matriculation tax . In 2011, the European Union Court of Justice declared the Spanish Boat Tax an “unlawful practice,” yet Spanish authorities ignored the guidance laid down by the EU.
Fortunately, the Spanish government finally listened.
THE MINISTRY COMMENTS
According to a statement released by the Spanish Ministry of Finance and Public Administrations in July, the Ministry will, “…cease the application of Matriculation Tax to vessels of 15m+ engaged in commercial activity.”
While the news is widely heralded as positive, many hurdles remain before chartering in Spanish waters becomes competitive with other regions in the European Union.
“Spanish IVA (VAT) remains at 21% – nearly double the typical fees found in other EU countries,” states Jana Sheeder, President of SailAway Yacht Charters and 1-800 Yacht Charters. Sheeder adds, “A myriad of permits and registration requirements makes it difficult for charter vessels to commit to cruising in Spain.Without Spanish registration, these yachts cannot begin and end a charter within Spanish waters. So the combination of administrative burdens and high IVA keeps most charter yachts out of Spain.”
THE TAX REMAINS
It should also be noted the matriculation tax has not been eliminated.
Sheeder explains,
“The tax has not been eliminated. The Ministry was careful to use the words, ‘Ceased to be applied.’ While we expect the Spanish Parliament to vote in favor of the Ministry’s position on the matriculation tax, there is no guarantee that a future administration won’t vote to reinstate it.”
STEP IN THE RIGHT DIRECTION
Still, the abolishment of the matriculation tax is a step in the right direction. Parliament’s approval is expected within the next few months and the new exemption should be in place in time for the summer 2014 charter season.
Today we shine the spotlight on the Abeking & Rasmussen yacht EXCELLENCE V. She is the 5th vessel in an eponymous line of highly successful superyachts.
THE SUPERYACHT EXPERIENCE™
German-built, this 60 meter lady combines elegant design with a sense of space. She stretches far beyond her physical dimensions. Indeed, the interior volumes of motoryacht EXCELLENCE Vare far more common on Mediterranean yacht charter vessels in the 70 to 75 meter range. She is a beautiful yacht who delivers The Superyacht Experience™ by 1-800 Yacht Charters to discerning clients.
HER DESIGN
The owner turns to London based Reymond Langton Design to develop a special design approach. For instance, where space is optimally utilized to meet charter guests’ needs. This approach is most evident within the guest staterooms. The master is located on the upper deck. In addition, more staterooms are situated on the main fore deck. These sleeping quarters offer interesting concepts. For example, large windows, spaciousness, and easy accessibility.
THE YACHT EXTERIOR
The exterior of the yacht embodies the sense of space provided in the interior. Her sleek lines, navy blue hull, and white superstructure portray a classic style with a contemporary feel.
Architecturally, major design amenities include:
Beach club to starboard
Port-side gym and massage room
Onboard Cinema
Aft swimming and dive platform
FLEXIBILITY AND COMFORT
A further example of the yacht’s reverence to flexibility and comfort is the tender launching area, which can be directly accessed from the double suite aft of the master stateroom [perfect for discreet getaways, without disturbing other onboard guests].
INTERIOR STYLE
Overall, her interior style is sophisticated and grand. A central elevator connects all five decks, while a spiral staircase provides access to each interior level. Glossy dark wooden wall panels frame the staircase, and natural stone floors complete the elegant feel.
Throughout the saloon and living spaces, soft upholstery and cushions, and curvy furniture are blended together in colors of grays, light beige and hints of red.
HER WARMTH
The same colors, warmth, and intimate feel of the interior flow outward to the exterior lounge areas. Here L-shaped couches actually face outward, allowing guests to enjoy the sweeping panorama from the uncluttered deck areas.
FAVORITE DECK
A favorite deck area is the privacy deck directly outside the master stateroom. Here, the guests can enjoy impressive views from either the large cockpit or the private Jacuzzi tub. Adjacent lounge pads turn this oasis into a private sun deck for the lead charter guests.
For social gatherings, the yacht offers a wonderfully-appointed sun deck featuring a Jacuzzi tub, wet bar, sun pads, and intimate cockpit area.
WATERSPORTS TOYS
For active charterers, the yacht holds 4 sets of SCUBA gear (for rendezvous diving), waverunners, SUPs (Stand Up Paddleboards), kayaks, SeaBob, a water trampoline, and many other water sports toys.
Possibilities are endless onboard Abeking & Rasmussen superyacht, EXCELLENCE V. Charterers will simply be amazed by the space, elegant design, and the variety of options for fun and relaxation.
LUXURY TAX ABOLISHED The recent Mediterranean Yacht Charter show in Genoa, Italy, learned that the 3 year old Sardinia Luxury Tax is no more. ABOUT THE TAX The repeal of the Sardinia Luxury Tax is especially good news to charter enthusiasts. Anyone considering a yachting vacation in the Mediterranean is fortunate. The law […] read more
The world of luxury yacht charter has finally arrived in the Seychelles. Motor yacht SEA STREAM, a 76 foot Ferretti with room for 8 guests, is now available for Caribbean yacht charter enthusiasts looking for a new destination. Ferretti yacht SEA STREAM is now available as the only high quality, luxury crewed motor yacht available […] read more
PLAN AND PACK Yikes! What to pack? In just over three weeks, you leave on a week-long Bahama yacht charter vacation. You choose a sleek, performance, basic sailing yacht with crew. Your menu provided to your yacht through your charter broker, and your crew is ready to welcome you aboard. Seriously, what do you pack? […] read more
Recent Comments