Much has been said in Spain since 2019 about the possibility that persons related to the entity owning the yacht could use it, albeit under the same conditions as a third-party client, that is with the corresponding contract, payment of market fees and the corresponding VAT. This was based on a binding consultation of the Spanish Directorate General of Taxes (DGT), dated February 2019, which qualified the yacht itself as a so-called ‘establishment’ and, consequently, the potential related users, as taxable persons in their capacity of non-residents holding an ‘establishment’ in Spain.

This binding ruling was followed by other similar rulings in the same sense in February 2021, October 2022 and January 2023, so the uncertainty meant that, in most cases, caution prevailed in the possibility that the tax administration would consider that the use of the yacht, generally by the UBO, resulted in the accrual of matriculation (mat) tax, which amounts to no less than 12 per cent of the value of the vessel.

Recently, in December 2024, our firm has obtained two binding rulings which clarifies the above-mentioned matter as follows:

1) Pleasure boats and vessels that are effectively and exclusively used in Spain for charter may be exempt from mat tax. This exemption must be applied for and obtained prior to the commencement of charter operations.

2) Although the UBO is a related person, in the event of being a non-resident in Spain and not having a direct ‘establishment’ in Spain (defined as a place where an economic activity is carried out, totally or partially), he/she may use the yacht in the terms mentioned above, without losing the recognition of the exemption from Spanish mat tax.

The reasoning for reaching the above conclusion is as follows:

a) The ‘use or utilisation’ of the vessel in Spanish waters constitutes one of the taxable events for mat tax purposes.

b) The law establishes that the use of the vessel by related persons is not considered a rental activity, losing the benefit of the exemption if they use it (with or without a contract and/or paying market fees). Since this non-consideration as a charter activity is established ex lege, the use of the yacht by related persons would imply the lack of exclusive dedication to the charter, a sine qua non condition to access and maintain the matriculation tax exemption.

c) Notwithstanding the above, the only persons who can be taxable persons of the Spanish mat tax are those residents in Spain and non-residents who have an ‘establishment’ in Spain, an issue that has already been settled in two binding consultations issued by the DGT in 2014.

d) Thus, if the UBO or related person using the vessel is neither resident in Spain nor directly has a so-called ‘establishment’ in Spain, he or she may use the yacht on the same terms as a non-related third party, without thereby losing recognition of the exemption from mat tax.

This again highlights the anachronism of the Spanish mat tax, as the conclusion is positive, as long as the yacht is operated through an owning entity (which happens in most of the cases) that has the human and material resources to dedicate the yacht to charter in Spain, but not in the case of direct ownership of the yacht without the yacht-owning company.

Finally, it should also be considered that the use by the UBO under market conditions should not be repeated or abusive, as this could be interpreted as an indication that the company acts as a ‘screen’ to avoid the accrual of the Spanish mat tax, especially for those vessels that usually spend a good part of the year in Spain. In short, it is important to be able to prove that there is a real business structure (for example employees, significant economic activity, etc.) and not a mere holding of the boat, which could be an indication that the owner is in fact a purely instrumental entity.

The Balearic Superyacht Forum 2025 will take place on 29 and 30 April in Palma, Mallorca. Hosted by the Balearic Marine Cluster, it will bring together regional investors, stakeholders, developers and partners for two days on serious discussion on future-proofing the Mediterranean. To secure your place at the second edition of this strategic think tank, visit: www.thebalearicsuperyachtforum.com

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