Sail yacht PHILANDERER is the largest sailing vessel licensed to legally charter in Spanish waters. She wants bookings in the Spanish Balearic Islands this summer!
Philanderer is currently booked from 28th July to 04th August (Palma/Palma). The sailboat is offering special rates for reservations secured before 31st May 2012.
€ 51,000 per week for charters in July and August. (Regular rate is € 56,000 per week)
€ 45,000 per week in June and September. (Regular rate is€ 49,000 per week)
Philanderer comes from Thailand, built by Concorde Yachts. This sailboat is well-known in the luxury yacht charter market. She boasts multiple features. For instance, large interior volume, a great layout for entertainment, and 5 guest cabins. Her onboard amenities include a sauna and a well-furnished gym.
Philanderer completely refit from 2009 through 2011. She is in bristol condition, from top to bottom.
There are an estimated 300 days of sunshine per year. The Balearic Islands offer wonderful beaches and rich culture. They are a preferred holiday destination in Spain. More passengers pass through the Palma de Mallorca airport than any other in Spain.
Her cruising ground is off the eastern side of Spain in the Mediterranean Sea. It is a beautiful group of islands that is is divided into 2 territories. The first is Gimnesias. For instance, Mallorca, Menorca and Cabrera in the North. Second is Pitiusas. For instance, Ibiza and Formentera in the Southwest. Numerous coves and protected anchorages make the Balearics an ideal yachting destination. She is especially desirable during warm summer months.
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.
Bon appetit! Motoryacht TAKARA will begin the 2017 Balearic Island yacht charter season with a new chef in the galley.
“Available in the Balearic Islands, M/Y TAKARA begins (the) 2017 season with a new super experienced Chef in her crew,” reports the yacht’s manager. “Chef Daniel Wilbor begins a new professional venture on board…With over 10 years of experience in the yachting industry he has already worked as a chef in 11 different yachts and has sailed all across the Atlantic Ocean! Born in Great Britain, he describes himself as a creative, competent and talented cooker with an special interest in Thai cuisine.”
She then gave us more information about him: “He also has a wide repertoire and can produce excellent meals from Mediterranean to Japanese, Indian and Asian Fusion, or North American and English dishes, all to a very high standard. His style is fresh and innovative combining a respect for quality products and a good arsenal of both classical and modernist cooking techniques.”
Delicious, well-plated meals are integral to the overall Superyacht Experience, and it’s always good news when a chef like Daniel joins a professional superyacht team.
THE YACHT
The San Lorenzo 126 yacht TAKARA is one of our newest additions to the Ibiza yacht charter fleet. This is a brand new, 2016 model, 38 meters in length, with comfortable accommodations for 12 guests in 5 staterooms (1 Master, 1 VIP, 1 Double and 2 Twins – with a Pullman berth in each)
Chef Wilbor is part of a 6 person crew.
IMPORTANT YACHTING INFORMATION TO KNOW
Motoryacht TAKARA is fully licensed to charter in Spain. This is extremely important and often overlooked by charter brokers and charterers. Without this special registration, a yacht cannot begin and end a charter in Spanish waters; furthermore, local Spanish workers like massage therapists, are precluded from coming aboard and providing services for the charter guests. Without having a Spanish yacht charter license, a superyacht needs to begin and end the charter in a remote location, like France, which adds wasted time and increased fuel costs to the overall charter. That is not The Superyacht Experience™ we envision for our clients!
July and August = 24.000€ per day — 145.000€ per week + 21% VAT
Rest of the year = 21.500€ per day — 130.000€ per week + 21% VAT
(The price includes a berth in Palma Mallorca in the summer season)
CURRENT BOOKINGS
21-28 July
07-14 Aug
In conclusion, come experience the talented menus of newly-welcomed Chef Daniel Wilbor onboard yacht TAKARA this summer. Plan a private luxury yacht charter in the Balearic Islands of Spain. Text “TAKARA” to 305-720-7245 for more information or complete our online inquiry form at https://www.1800yachtcharters.com/book-now-contact-us/ , and we will contact you right away!
Sardinia has been on everyone’s radar for the past few weeks. First, we heard how Steven Spielberg, with Gwyneth Paltrow in tow, ran afoul of the local authorities as the tender to his superyacht, motoryacht SEVEN SEAS cruised too close to island beachgoers.
PERINI NAVI YACHT CHARTER FLEET
Then, we reported on the Perini Navi yacht charter fleet preparing for early September’s sailing regatta against the beautiful backdrop of Porto Cervo, Sardinia.
WANT TO SEE IT ON A MAP?
So exactly where is Sardinia and what is the allure that draws so many sailors and visitors?
Sardinia is Italy’s second-largest island as well as the second-largest island in the Mediterranean Sea. It is famous for its beautiful beaches and fascinating history. The nearest land masses are (clockwise from north) the French island of Corsica, the Spanish Balearic Islands, and the Italian Peninsula, Sicily, and Tunisia.
For Atlas lovers, the island of Sardinia is situated between 38° 51′ and 41° 15′ latitude north and 8° 8′ and 9° 50′ east longitude. To the west of Sardinia is the Balearic Sea; to Sardinia’s east is the Tyrrhenian Sea.
Over many centuries the island has survived countless invasions by the Phoenicians, Carthaginians, Romans, and Arabs. Local festivals on the island still reflect the long-lasting impact of those cultures.
Numerous castles, villages, temples and tombs cover the countryside, and with its perfect summer weather, tourists arrive in droves, some via Mediterranean yacht charter vessels, but many more via ferry service from the Italian mainland. In conclusion, where is Sardinia? It is a beautiful superyacht charter destination in the Mediterranean. It is perfect for The Superyacht Experience(tm) by 1800yachtcharters.
Freelance chef Jason Carruthers has joined the crew onboard the 37 meter Formula 1 inspired motor yacht AURELIA for the upcoming Balearic Island yacht charter season. Jason has spent the last 15 years traveling and honing his culinary skills, both on land an onboard private yacht charter vessels. His travels have helped him develop an extensive knowledge of international cuisine. Now living in Palma Mallorca, Carruthers joins the 6-person yacht charter crew on board the sleek superyacht, whose home port is also Palma.
Carruthers explains how he developed his talents for cooking:
“As a private chef I have worked on land and water and cooked in some incredibly remote places where sourcing ingredients can be a daily challenge. With extensive catering and consulting throughout Europe and working with chefs of all origins, I have been able to absorb a great knowledge of international cuisine.”
Aside from his culinary talents, Carruthers also holds an endorsement in Standards of Training, Certification, and Watchkeeping (SCTW Maritme), as well as certificates in hygiene, and firefighting, and sea survival.
YACHT CHARTER COMPANY PRESIDENT COMMENTS
As he has previously worked on yachts, Jana Sheeder, President of 1-800 Yacht Charters sees Carruthers as a natural fit to serving onboard motor yacht Aurelia – one of her most popular Balearic Island yacht charter vessels.
“Sometimes, chefs with limited experience on a yacht have difficulty with the transition from working in a restaurant or private home to serving onboard a superyacht,” says Sheeder. “Jason has a solid boating background, having served as both a chef and deckhand on motor yacht HUSH [38m] and motor yacht Osiana [25m]. He can drive a tender, take a turn on watch, and assist with safety issues.”
THE YACHT
Jason’s new home at sea, Heesen yacht Aurelia (priced from €105,000 per week), is well-known in the Balearics.
SPAIN YACHT CHARTER LICENSE
Yacht charters in Spain require the vessel secure a Spanish charter license in order to begin an conclude charters within Spanish waters. Possessing this license gives Aurelia a distinct advantage over other charter vessels. Without this license, a yacht can either start or end a charter in Spain – but it cannot do both. This forces unlicensed yachts to spend part of the charter period in far-away France – adding additional fuel costs to the charter customer’s tab (not to mention the loss of precious charter time in Spain).
YACHT ACCOMMODATIONS AND DETAILS
Aurelia offers accommodations for eight guests in four staterooms. With her non-traditional paint scheme inspired by Formula 1 racing team colors, the yacht is instantly recognizable. And just like a F-1 race car, this yacht is fast – hitting speeds of over 30 knots, while similar-sized motoryachts cruise at no more than 12-15 knots. Charting a yacht with such impressive speed capabilities means Balearic island yacht charter clients can explore the entire chain of islands – from Ibiza to Mallorca, within a week-long getaway.
SAMPLE MEALS PREPARED BY YACHT CHARTER CHEF CARRUTHERS
-ASPARAGUS PUREE WITH SEA BASS AND COURGETTE GARNISH
-SEA BASS WITH POMEGRANATE, RED ONION, AND MANGO SALSA
Spain wants more private luxury yacht charter business in the Balearic Islands. However, they have a funny way of showing it.
Regular readers of our blog might recall the controversy. Previously blogged, it surrounds Spain’s 13.7% yacht charter Matriculation Tax (blog September 14, 2013). Heavy lobbying by the Spanish yachting and marina industries saw that tax removed. Unfortunately, Spain is still imposing far greater taxes on charters. This is as compared to fellow European Union countries like France, Italy and Malta.
Case in point. Picture a specific yacht that is legal for charter in both Spain and France. It incurs TWICE as much VAT liability in Spain. This is even though the tax percentages are nearly identical!
VAT EXAMPLE
A yacht charter example.
Formula 1’s Eddie Jordan has a Sunseeker 155 motor yacht BLUSH for charter. He often keeps her in the Balearic Islands for the summer charter season. When there is demand, the yacht can easily reposition. She moves to the South of France for clients who prefer a French yacht charter vacation. Additionally, she can go to the coastal areas of Italy and nearby islands of Sardinia and Corsica. Her weekly charter rate remains the same between both destinations. The rate is €220,000 per week in high season. VAT rates are almost identical: 20% in France and 21% in Spain.
A client who charters Sunseeker 155 yacht BLUSH in Ibiza, however, will see a tax of €46,200 on his charter agreement, while a client chartering the yacht in Cannes, will incur a charge of just €22,000.
HOW DOES THIS AFFECT CLIENTS?
If you’re the client taking the yacht in Spain, one word comes to mind (well, maybe a few words…), most notably, “OUCH!”
So what is the explanation? Why the drastic difference if the tax rates are nearly identical? The answer can be found in Article 58 of European Union Council Directive 2006/112/EC.
“The European Union directive on VAT, as it relates to private yacht charter revenue, has a clause entitled, ‘criterion of effective use and enjoyment.’ This clause allows member states to implement a VAT reduction scheme. However, it is not compulsory. Popular cruising destinations like France, Italy, and Malta all take advantage of this opportunity to reduce VAT. Unfortunately, Spain does not.”
HOW IS VAT CALCULATED?
In our example above, the client who charters motor yacht BLUSH in France, ends up with an effective tax rate of 10%. The client who charters this yacht in Spain pays the full rate of 21%.
Note – the tax savings only kicks in when the chartered yacht cruises beyond 12 nautical miles – in essence, into international waters and out of the borders of the European Union. This is a simple task and almost all charter yacht captains will implement this strategy in order to save the charter customer 50% of the VAT rate. However, even if a yacht in Spain sails beyond the 12 nautical mile boundary, the Spanish government still insists on collecting the full VAT fee.
MEMBER STATES OF EUROPEAN UNION
The Member States of the European Union include:
Austria
Belgium
Bulgaria
Croatia
Cyprus
Czech Republic
Denmark
Estonia
Finland
France
Germany
Greece
Hungary
Ireland
Italy
Latvia
Lithuania
Luxembourg
Malta
Netherlands
Poland
Portugal
Romania
Slovakia
Slovenia
Spain
Sweden
United Kingdom
VERBIAGE OF THE DIRECTIVE
For those readers who enjoy the technical details, here is the verbiage of the directive:
In order to avoid double taxation, non-taxation or distortion of competition, Member States may, with regard to the supply of the services referred to in Article 56(1) and with regard to the hiring out of means of transport:
(a) consider the place of supply of any or all of those services, if situated within their territory, as being situated outside the Community, if the effective use and enjoyment of the services takes place outside the Community:
(b) consider the place of supply of any of all of those services, if situated outside the Community, as being situated within their territory, if the effective use and enjoyment of the services takes placing within their territory.
TAX MARINE COMMENTS
Alex Chumillas, the director of Tax Marine explains the directive and the result of Spain’s decision: “As is clearly defined in paragraph (a), the provision seeks to minimise VAT taxation applicable to certain services, among them the hiring out of means of transport (for instance charter),” “However, the provision has not been implemented in Spain. Therefore, chartering in Spain is subject to a flat VAT rate which does not benefit from any reduction, even when sailing beyond 12 nautical miles.”
Paragraph (b) allows Spain to levy VAT charges on certain services that have been provided outside of Spain – if the services are enjoyed inside of Spain. Let’s say a charter starts in Gibraltar. The yacht will need to register for VAT and pay VAT on the length of the charter in Spain (and of course, pass then expense on to the charter customer).
By choosing to implement paragraph (b) only, the Spanish government has chosen to only apply the more burdensome element of the directive. Is this the right thing to do to people wanting to experience travel in your country?
OUR HOPES
Like they did with the repeal of the oppressive matriculation tax in 2013, let’s hope the legislators in Spain come to realize a reduction in VAT will make the Ibiza yacht charter market competitive with neighboring France and the rest of the European Union states that derive strong financial benefits from the private luxury yacht charter industry.
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