PURCHASE OF PLEASURE YACHTS BY VIRTUE OF A CYPRUS LEASING SCHEME
Recently, there was established by the Ministry of Finance of Cyprus a new scheme for the purchase of pleasure yachts through leasing system, which is a method not only for the acquisition of yachts with partial payment of the purchase price but also an alternative way for payment of VAT in the European Union, such as older European schemes (Malta recently, Italy, France in the past) with clearly improved terms.
The main features are:
- The Lessee must pay to the Leasing Company a minimum of 40% of the value of the yacht.
- The yacht must visit Cyprus within one month from the date of signing of the leasing contract.
- The duration of such contract can be one to four years and the installments are paid on a monthly basis.
- Upon completion of the leasing scheme, the Lessee receives a VAT PAID Certificate by the competent authorities and has the right to purchase the Yacht by payment of 5% of the value of same to the Lessor.
- Finally the yachts are separated in accordance with the method of propulsion in two (2) general categories, motor yachts and sailing yachts and five (5) different categories, depending on their length, in accordance of which the VAT imposed is as follows:
MOTOR YACHTS
|
Total Length |
VAT |
|
Οver 24 m. |
3.4% |
|
14,01m. - 24 m. |
5.1% |
|
8,01m. – 14 m. |
8.5% |
|
0- 8 m. |
10.2% |
SAILING YACHTS
|
Total Length |
VAT |
|
Over 24m. |
3.4% |
|
20,01m. – 24m. |
5.1% |
|
10,01m. – 20m. |
8.5% |
|
0-10 m. |
10.2% |