Maritime Law | The Maltese Flag, Yacht and Ship Registration in Malta
Malta currently ranks as the second largest shipping register in Europe and amongst the top ten in the world. This comes as no surprise as Malta is located in an almost ideal geographical location, positioned at the centre of the Mediterranean. As of 2006, Malta has been recognized as one of the high ranking flag States on the Paris MoU ‘White List’. The Maltese flag allows for the registration of any vessel, including those under construction, provided it is owned by a Maltese registered company or is owned by a person who habitually resides in Malta. This includes all types of vessels, from yachts to passenger cruise ships and tankers as well as other marine structures, such as oil rigs, cranes and pontoons. Not surprisingly, registration under the Maltese flag offers numerous benefits, including:
- Low company formation costs, straightforward and quick;
- Low costs in operating from Malta;
- No restriction imposed on the nationality of shareholders and directors of Maltese Companies;
- No restriction on the nationality of crew working on board of Maltese vessels, in turn allowing foreign companies to own or operate Maltese registered vessels;
- No restriction, limitation or tax on the Sale or Mortgaging of Maltese registered ships;
- Beneficial tax regime, providing for a competitive tax rate of 5% as well as VAT exemptions on the chartering of commercial yachts;
- Total and absolute tax exemptions for ships and private yachts over 1,000 Gross Tons;