Edition 2013/02

JAZZ

18 October 2013

CHARTER CHANGES IN SPAIN

THE SPANISH LAW REGARDING CHARTERING WILL BE IN FORCE ON MONDAY 21ST OCTOBER 2013 WHICH WILL HAVE AN IMPACT ON THE MATRICULATION ISSUE.
To clarify, the Matriculation Tax has not been eliminated the law is only modified. The existing law says: Commercial vessels (yachts for charter) up to 15 metres are exempt from the Matriculation Tax. The government has now decided that this law will be modified to: ALL commercial vessels are exempt from the Matriculation Tax. The removal of the 15 metre limit for the granting of exemption to the tax for commercially used yachts means that all EU charter vessels operating in Spain may therefore apply for this exemption. The Exemption has to be formally applied for and is granted providing all the conditions are complied with commercial use only. The Spanish Charter License still remains. The bill that Commercial yachts are exempt from the matriculation tax went through the Senate and will be published in the State Official Gazette (BOE) this week and, the Law will enter into force from the following day of its publication in the BOE. Consequently, the Law will come into force this week. This has been achieved thanks to a group of dedicated industry professionals and, of course, thanks to the recognition and willingness to help demonstrated by the Spanish Administration on all levels. The exemption of the matriculation tax for commercial yachts was the first step. We will keep on fighting so that chartering in the beautiful Spanish waters will be as easy as anywhere else in Europe. What do these changes mean in practice: Commercial vessels do not have to pay the 12 % matriculation tax in order charter in Spain, but they do need to apply for the exemption and have a Spanish Charter License in order to legally charter in Spain. Applying for a Spanish Charter License: Any vessel that wishes to charter in Spain needs to obtain a Charter License, this is not a problem for European flagged vessels. There is paperwork involved and there are several agencies that can assist with this. For Non-EU flagged vessels,

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EDitiON 2013/02
it remains not 100 % clear - there are some hindrances which we are currently checking. in the Balearic islands, two different charter Permits are required: The Balearic Government Department of Transport Authorisation to Charter (Annual) The Spanish Maritime Authorities Charter Permit (Renewable when Major Certificates Expire or Quarterly when full time crew on board.) compliance with two separate pieces of legislation is required: Fiscal Legislation requiring: Obtaining a Spanish Tax I.D. number Registration with the Spanish Tax Authorities Exemption from Matriculation Tax Certificate On-going quarterly VAT/Tax returns Maritime Legislation requiring: The vessel is EU Flag Registered for Commercial Use Relevant Commercial Seaworthiness Certificate issued by the Flag State Compulsory Third Party Insurance and Passenger Liability Insurance

18 OctOBEr 2013
Required Radio and Safety Equipment MARPOL Certification for vessels up to 24 metres Minimum Manning Certificate when required by Flag State, and Crew Qualifications/Certification, validated by Flag State After all the paperwork is complete, it can take 4 weeks or longer to obtain the license from the Governments Department of Transport. The license is usually valid for as long as the commercial seaworthiness certificate is valid. In order to have all the documents and the charter license ready for the next summer season, it would be recommendable to start the process in December or January. After that, the process would take longer than usual. vAt on charter rate: 21 % VAT applies to the charter rate. We are looking into if a reduction can be applied.
Further Information:

Should you have any questions or any interest in applying for a Spanish Charter License, please feel free to contact your Charter Manager and OCEAN Independence will be happy to assist with the whole process.

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