Malta Desk · Yacht Charter
Yacht Charter Malta — Operations Support
CYC 2025 charter licence support, 12% VAT structuring under LN 231/2023, crew documentation, customs clearance, provisioning and bunkering for charter operators based in or chartering from Malta. Not a brokerage — the operations partner that sits behind one.
Charter VAT Edge
12% reduced VAT on short-term charters commencing in Malta — the lowest rate in the EU. Compare with France 20%, Spain 21%, Italy 22%, Greece 24%. On a €100k charter week, ~€8k saved vs France.
Charter Licence Path
- CYC 2025 (≥24m) — in force 1 Jul 2025
- sCYC 2024 (12–24m) — in force 1 Apr 2024
- 3-month provisional COC for REG / French / Italian-coded yachts
- Charter ops can begin during provisional
Malta Charter Base
- 400+ commercial yachts >24m on Malta flag
- Grand Harbour Marina: 26 berths up to 135m
- Customs at Grand Harbour: 24/7
- Central-Med position — Riviera, Greece, Turkey reachable
What We Do
The Charter Operator's Operational Stack
Charter operations live or die on operational discipline — booking confirmation through guest disembarkation, with VAT, customs, crew, and provisioning all coordinated. Mercer's scope across the charter cycle:
Pre-charter
- Charter contract review for 12% VAT eligibility (place-of-supply, written agreement, 35-day aggregation check against prior charters)
- Berth coordination at Grand Harbour, Marina di Valletta, Manoel Island or Mgarr
- Provisioning brief — guest preferences, dietary, bonded vs taxable splits
- Bunkering quote and slot booking ahead of arrival
- Charter guest customs/immigration pre-notification (Schengen, ESTA, visa-exempt, third-country crew briefing)
Charter window
- Charter guest meet-&-greet at Malta International Airport (with VistaJet and Comlux Malta operating private aviation from MLA)
- Customs clearance of guests and luggage at the marina
- Daily provisioning runs and last-minute special requests (note: bespoke goods at standard 18% VAT, not 12%)
- Real-time bunkering, water, garbage, laundry coordination
- Helicopter / yacht tender / shore-excursion concierge
Post-charter
- Charter guest departure clearance — Grand Harbour Customs operates 24/7 to handle non-business-hour movements
- Crew sign-off paperwork where rotating between back-to-back charters
- Consolidated disbursement account itemising standard-rate vs 12%-rate supplies
- VAT invoice handling (operator's Malta VAT registration required to apply the 12% rate)
- Inter-charter turnaround prep for the next booking
12% Charter VAT
The Operator's Guide to LN 231/2023
Effective 1 January 2024, Legal Notice 231 of 2023 amended the Eighth Schedule of the Maltese VAT Act to introduce a 12% reduced rate on short-term yacht charters commencing in Malta. Standard Malta VAT remains 18%. The reduced rate applies only when all three conditions are met:
- Place of supply must be Malta — the yacht is physically placed at the charterer's disposal in Malta. Charters nominally booked from Malta but with handover elsewhere don't qualify.
- Written charter party for a specified term.
- 35-day aggregation rule per lessee — the current charter, plus all prior charters of the same yacht to the same lessee in the previous 12 months, must total 35 days or fewer. Beyond 35 days, the first 35 days stay at 12% and the remainder reverts to standard 18%.
EU charter VAT comparison
| Country | Standard VAT | Charter VAT (commencing) |
|---|---|---|
| Malta | 18% | 12% reduced on short-term ≤35 days |
| France | 20% | 20% |
| Spain | 21% | 21% |
| Italy | 22% | 22% |
| Greece | 24% | 24% standard / 13% reduced for licensed professional charters >48h |
| Cyprus | 19% | 19% (leasing scheme available) |
Worked example
A €100,000 / week charter of a Malta-flagged commercial yacht starting in Mgarr Harbour under a 7-day written agreement:
- Standard Malta VAT (18%): €18,000 VAT liability
- Reduced rate (12%): €12,000 VAT liability
- vs France (20% headline): €20,000 — Malta saves €8,000 / week
- vs Italy (22% headline): €22,000 — Malta saves €10,000 / week
- vs Greece (24% standard / 13% for licensed pro charters >48h): €24,000 or €13,000 — Malta saves €12,000 vs standard rate, or ~€1,000 vs the licensed reduced rate
France, Italy and Spain headline rates shown above. Effective VAT can be lower where documented time outside EU 12nm waters reduces the taxable base (AIS evidence required). Malta's 12% applies to the full charter consideration regardless of cruising pattern.
Two operational catches worth flagging early. First: composite supply. Standard charter inclusions (typical onboard provisioning, fuel within the contracted scope) ride the 12% rate; goods supplied at the charterer's specific request and non-consumables fall outside the protection and are taxed separately at 18%. Provisioning splits matter for VAT, not just for budget control. Second: non-Maltese operators using the regime must register for Maltese VAT — the 12% rate is open to them, but it isn't automatic.
For the wider tax picture beyond charter VAT — including tonnage tax replacing the 35% corporate rate, capital gains exemption, and the 2027 EU state-aid renewal cliff — see our Malta Yacht Tax Guide 2026.
Charter Licence Path
CYC 2025 & sCYC 2024 — The Two Codes
A Maltese commercial yacht needs a Certificate of Compliance to Trade before carrying paying charter guests. Two codes apply, depending on size:
CYC 2025 — for yachts ≥24m
In force from 1 July 2025, the fifth edition of the Commercial Yacht Code applies to yachts 24m and above carrying up to 12 passengers. The code formalises three navigation notations: Short Range (60nm), the new Extended Short Range (150nm), and Unrestricted Navigation. The new ESR notation opens charter zones from a Malta base that didn't formally exist under previous codes. Yachts certified under the previous CYC 2020 must comply with CYC 2025 by their first renewal survey after 31 December 2025.
sCYC 2024 — for yachts 12–24m
In force from 1 April 2024, the Small Commercial Yacht Code brought 12-to-24m commercial yachts under Maltese flag eligibility for the first time, with a 5-year Certificate of Compliance to Trade survey cycle. Operational areas: Coastal (20nm), Short Range (60nm), Extended Short Range (150nm), Unrestricted.
The 3-month provisional COC — charter operations can start immediately
Yachts already certified under MCA LY3 / REG Yacht Code, the French commercial code, or the Italian Regolamento di Sicurezza DM n.95 are issued a 3-month provisional Certificate of Compliance at the same navigation range, pending the full Initial Surveys for Maltese certification. This means charter operations can begin during the provisional window — operators don't lose a season waiting for the full Maltese certificate to issue.
For a deeper read on the CYC 2025 changes themselves, see our CYC 2025 dispatch and the Mercer-handled flag registration path. Mercer coordinates the COC application, surveyor liaison, and document compilation — the work that bridges your existing certification with Maltese requirements.
Malta as a Charter Base
Why Operators Run from Grand Harbour
Lowest EU charter VAT
12% short-term — measurably below France, Italy, Spain headline rates. The single biggest commercial argument for a Med charter base.
Native EU flag
No Yacht Engaged in Trade (YET) charter-day cap as imposed by some non-EU flags. Native EU charter operations across the entire bloc.
Central-Med geography
French Riviera, Italian Riviera, Greek Islands and Turkish coast all reachable in standard inter-port repositioning.
24/7 customs at Grand Harbour
Charter guest movements don't have to fit a 9–5 window. Material when guests arrive at midnight or depart at dawn.
Refit + charter in one harbour
Grand Harbour Marina (26 superyacht berths up to 135m) sits adjacent to Palumbo Shipyard — refit between charters without relocating.
CYC Extended Short Range
CYC 2025's new ESR (150nm) notation unlocks itineraries from Malta that the 60nm Short Range couldn't support.
Where the Operations Get Done
The Malta Desk Spokes
The yacht charter page is the umbrella; the detailed work happens across the existing Malta Desk service pages.
The end-to-end yacht agency hub for arrival, in-port, and departure operations.
CYC 2025 / sCYC 2024 certification, 3-month provisional COC for foreign-coded yachts.
Charter guest arrivals/departures, 24/7 Grand Harbour Customs window.
CoC endorsements, MLC SEA contracts, sign-on/off paperwork between back-to-back charters.
Guest provisioning, special-request VAT splits, cold chain, bonded stores.
12% charter VAT mechanics under LN 231/2023; importation deferment.
Grand Harbour, Marina di Valletta, Manoel Island, Mgarr — placement up to 135m.
Charter guest tours, transfers, helicopter, VIP arrival sequencing.
FAQ
Frequently Asked Questions
Is Mercer Yachting a charter broker?
No. Mercer is a Malta-based operations partner for charter operators, management companies, and owner-operators. We don't book retail charters — we provide the operational wraparound that makes a chartered yacht compliant, fueled, provisioned and cleared from a Malta base. Charter brokerage sits with firms like Fraser, Northrop & Johnson, Burgess and Camper & Nicholsons; we work alongside them, not against them.
How do I get a charter licence for a Malta-flagged yacht?
Commercial yachts ≥24m operate under the Commercial Yacht Code 2025 (in force 1 July 2025); yachts 12–24m operate under the Small Commercial Yacht Code 2024 (in force 1 April 2024). Both regimes require a Certificate of Compliance to Trade. Yachts already certified under MCA LY3, REG Yacht Code, French or Italian commercial codes can receive a 3-month provisional Certificate of Compliance at the same navigation range — charter operations may begin during that window while the full Maltese certification completes.
How does Malta's 12% charter VAT actually work?
Legal Notice 231 of 2023 introduced a reduced 12% VAT on short-term yacht charters, effective 1 January 2024. Three conditions: place of supply must be Malta (yacht physically placed at the charterer's disposal in Malta); written charter agreement for a specified term; and the charter cannot exceed 35 days when aggregated with all prior charters of the same yacht to the same lessee in the previous 12 months. Beyond the 35-day cap, the first 35 days stay at 12% and the remainder reverts to standard 18%. Goods supplied at the charterer's specific request fall outside the composite-supply protection and are taxed separately.
What's the VAT saving for a charter starting in Malta vs France or Italy?
On charter VAT specifically, Malta is the lowest EU starting point. A €100,000 / week charter starting in Malta carries €12,000 VAT under the 12% rate; the same week starting in France attracts €20,000 (20% standard); starting in Italy €22,000 (22% standard); starting in Spain €21,000 (21%); starting in Greece €24,000 (24% standard, or 13% for licensed professional charters >48h). Roughly €8,000 saved per week vs France on a €100k charter — over a 12-week season, materially compounding.
Does Mercer handle charter guest customs clearance?
Yes. Charter guest arrivals and departures are part of the Malta Desk customs and immigration scope. Grand Harbour Customs operates 24/7, which materially helps with non-business-hour guest movements. We coordinate the clearance window with the captain and the marina, and produce consolidated paperwork for each charter.
Can a non-Maltese charter operator use the 12% VAT rate?
Yes — but the operator must register for Maltese VAT to apply the 12% rate to the Malta-side leg. The regime is open to non-Maltese operators; it isn't automatic. We handle the structuring and registration as part of the operations onboarding.