– Business – Tax relief for non-EU yachts

Evolution Yacht Agents explains how non-EU yachts can benefit from a 21% TPA tax break when moored in Spain…

The lure of the Mediterranean and the beauty of Spanish marinas have long drawn travelers from all over, positioning themselves as a popular yachting destination. A mild climate offering sunny days all year round makes Spain a strategic location for visiting superyachts. However, even after savoring the richness of a Gran Reserva Rioja or trying a bite of the typical Valencian paella, Spanish VAT taxes can leave a sour taste.

TPAs (aka Inward Processing) are a tax treatment that allows non-EU (and other) yachts to undergo refits and repairs while moored in Spanish shipyards. Yachts under TPA enjoy tax relief of 21% on VAT charges on all repair and maintenance work, including spare parts and birth occupancy, which extends to utility bills. registered countries outside of Spain. Evolution Yacht Agents act as a customs agent to ensure compliance with Spanish tax and customs requirements. Drawing on its extensive experience in successfully managing over 400 TPAs, Evolution ensures that all legal requirements of customs and port authorities are met. Additionally, an in-house registered customs broker is available as part of Evolution’s commitment to help without intermediaries.

During the refit of a yacht, Evolution’s dedicated team will assist in the entire clearance and customs procedure with reference to management and liability. Temporary import for non-EU registered yachts opens when the vessel is in port. Evolution ensures that the deposits required for the refit will be exempt from VAT (21%) by preparing the refit in advance. TPA-linked spare parts can also become exempt from import customs duty and VAT by linking them to the scheme. In addition, Evolution boasts of having the first bonded warehouse (2500m²) in the Balearic Islands as well as a 1500m² warehouse in Palma De Mallorca. The warehouses are free zones and can therefore store goods from outside the EU without paying import taxes. Customs must be notified if the owner wishes to change berths, conduct sea trials or declare parts for relocation, disposal or sale.

The TPAs ​​are giving non-EU yachts a temporary 18-month import period before they are due to close. Fortunately, yachts under TPA no longer need to leave the EU to close a TPA. A year has passed since a change to the EU’s ‘Customs Union Code’ (UCC) allowed non-EU vessels to close the TPA, restarting the applied 18 months without the hassle (or expenses) of having to leave and re-enter the EU. Today, yachts under TPA can simply visit any other transit port or sail offshore beyond the 12 nautical mile distance to renew their TPA. In case of opening and closing of a TPA in a transit port, this must be done inside the customs area. Evolution Yacht Agents can open and manage inward processing in any of the qualified Spanish ports, among which those of Palma, Barcelona, ​​Tarragona, Valencia, Vilanova, to name but a few.

Evolution Yachting agents have created an informative video that explains how to access the benefits offered by the TPA and the services they offer to ensure that it complies with Spanish customs regulations.

The evolution of the TPA regulations for yachts moored in Spanish shipyards

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