Italian yacht tax changes approved by Senate
The news has been confirmed by Federagenti Yacht, the lobbyist group which has put pressure on the Italian government to remodel unpopular tax laws introduced at the end of last year.…
The Italian Senate has approved amendments to the government's widely criticised yacht tax, proposed in December 2011, to be applied to all yachts in Italian waters, and due to come into effect on 1 May. A new dimension of the law has also been introduced, which will alleviate costs for superyacht owners, both Italian and foreign.
The first central change is that tax will be applied to Italian owned yachts only, regardless of whether the yacht is kept in Italy, or overseas, exempting all foreign owned yachts. The second will make tax chargeable on a simpler annual rather than daily rate. Both changes are expected to gain Parliament’s approval in the next few days.
Fulvio Luise, President of Federagenti Yacht, the lobbyist group of maritime industries in Italy which has been instrumental in achieving the amendment, said in a statement today:
“The passing of this amendment is an important recognition of the economic impact that the yachting industry has in Italy and we look forward to welcoming new and returning superyacht clients to Italian waters this summer.”
Whilst the legislation has not finally concluded yet, Luise said he "sincerely (hoped) that it will be officially confirmed shortly...It will be necessary to wait for clarification on a few aspects of the law, in particular how this tax will be applied to leasing and the charter market and for foreign flagged vessels who have Italian citizens on board.”
Foreign owned yachts cruising to destinations like Porto Venere, Italy (pictured) will not pay the new tax
The amendments' two aspects – the new annual rate as well as the fact only Italian owners will be charged – once ratified by Parliament will have positive and immediate implications for marine businesses and marinas in Italy.
Roberto Sponza, General Manager at CNM operated Porto San Rocco marina, near Trieste in Italy, said:
“In comparison to the [scale of the tax] detailed in the previous law - where yachts were charged at a daily rate - it's 50-90 per cent less.
“Before, as an example, if you had a 60m yacht it cost 190,000 euros for one year in taxes based on the daily rate of keeping it in Italy the whole year. With the new laws it will be 21,000 euros for a 60m yacht.”
Porto San Rocco,Italy
Sponza said the new Italian ownership-based tax will also prevent the feared exodus of yachts to nearby Croatia. Whilst Porto San Rocco had not seen this adverse effect, Sponza had already witnessed the trend elsewhere:
“[Following] the first edition of the tax some yacht owners took the decision to move their yacht to Croatia. Damage was done to our marinas in Italy.”
Renato Azara, Director at Sardinia Yacht Services also welcomed the tax changes:
"We are very relieved that this tax has been amended, otherwise we risked a drastic reduction of tourism in the future…I believe that it was amended due to the fact that such a law would have ultimately created an economic crisis throughout Italy; many yacht owners would have chosen other destinations to sail to."
Renato Azara - 'very relieved this tax has been amended'
The twofold tax amendment on the near horizon is therefore positive news and should encourage the return of foreign-owned yachts to Italian waters, as well as inducing relief on the part of Italian yacht owners with the prospect of a tax reduction. It is also set to instil confidence at a crucial time in the calendar when captains and owners are making decisions on where to sail or charter their yacht in the summer season. Owing to the new changes, Italy can stay on the itinerary.
Tax issues will be discussed at the Superyacht Fiscal Summit on 29 March in London, the full programme is available to download.
Related Links
Federagenti Yacht Website
Camper & Nicholson's Marinas Profile | Porto San Rocco Website
Sardinia Yacht Services Profile | Sardinia Yacht Services Website
The first central change is that tax will be applied to Italian owned yachts only, regardless of whether the yacht is kept in Italy, or overseas, exempting all foreign owned yachts. The second will make tax chargeable on a simpler annual rather than daily rate. Both changes are expected to gain Parliament’s approval in the next few days.
Fulvio Luise, President of Federagenti Yacht, the lobbyist group of maritime industries in Italy which has been instrumental in achieving the amendment, said in a statement today:
“The passing of this amendment is an important recognition of the economic impact that the yachting industry has in Italy and we look forward to welcoming new and returning superyacht clients to Italian waters this summer.”
Whilst the legislation has not finally concluded yet, Luise said he "sincerely (hoped) that it will be officially confirmed shortly...It will be necessary to wait for clarification on a few aspects of the law, in particular how this tax will be applied to leasing and the charter market and for foreign flagged vessels who have Italian citizens on board.”
Foreign owned yachts cruising to destinations like Porto Venere, Italy (pictured) will not pay the new tax
The amendments' two aspects – the new annual rate as well as the fact only Italian owners will be charged – once ratified by Parliament will have positive and immediate implications for marine businesses and marinas in Italy.
Roberto Sponza, General Manager at CNM operated Porto San Rocco marina, near Trieste in Italy, said:
“In comparison to the [scale of the tax] detailed in the previous law - where yachts were charged at a daily rate - it's 50-90 per cent less.
“Before, as an example, if you had a 60m yacht it cost 190,000 euros for one year in taxes based on the daily rate of keeping it in Italy the whole year. With the new laws it will be 21,000 euros for a 60m yacht.”
Porto San Rocco,Italy
Sponza said the new Italian ownership-based tax will also prevent the feared exodus of yachts to nearby Croatia. Whilst Porto San Rocco had not seen this adverse effect, Sponza had already witnessed the trend elsewhere:
“[Following] the first edition of the tax some yacht owners took the decision to move their yacht to Croatia. Damage was done to our marinas in Italy.”
Renato Azara, Director at Sardinia Yacht Services also welcomed the tax changes:
"We are very relieved that this tax has been amended, otherwise we risked a drastic reduction of tourism in the future…I believe that it was amended due to the fact that such a law would have ultimately created an economic crisis throughout Italy; many yacht owners would have chosen other destinations to sail to."
Renato Azara - 'very relieved this tax has been amended'
The twofold tax amendment on the near horizon is therefore positive news and should encourage the return of foreign-owned yachts to Italian waters, as well as inducing relief on the part of Italian yacht owners with the prospect of a tax reduction. It is also set to instil confidence at a crucial time in the calendar when captains and owners are making decisions on where to sail or charter their yacht in the summer season. Owing to the new changes, Italy can stay on the itinerary.
Tax issues will be discussed at the Superyacht Fiscal Summit on 29 March in London, the full programme is available to download.
Related Links
Federagenti Yacht Website
Camper & Nicholson's Marinas Profile | Porto San Rocco Website
Sardinia Yacht Services Profile | Sardinia Yacht Services Website
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