SHIPPING

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Malta company incorporation timelines are subject to applicable AML/CFT due diligence and regulatory checks.

Ideal for businesses in sectors such as trading, holding, investment, fintech, remote gaming, shipping, and aviation, Malta company setup is a popular choice for international entrepreneurs and investors seeking a tax-efficient corporate structure.

At Promethean, we provide a full suite of services for Malta company setup, corporate maintenance, and trustee services. We guide you through the process and help ensure your business benefits from Malta’s advantageous tax regime and business-friendly policies

Promethean offers the following services

Merchant Shipping

All types of vessels, from pleasure yachts to oil rigs, may be registered in the name of legally constituted corporate bodies or entities, irrespective of nationality, or by European Union citizens. A Maltese ship may also be bareboat charter registered under another flag. Malta ship registration is available for a wide range of vessel types.

 

Malta shipping legislation does not generally impose trading or age restrictions. However, vessels of ten (10) years and over may be subject to flag state inspection requirements, with stricter conditions applying to vessels aged fifteen (15) years and over.

 

Maltese vessels registered under Malta shipping legislation are entitled to fly the Maltese Flag and enjoy the advantages provided by law, including international recognition and protection. The Malta Flag formally came into existence in 1973 following the promulgation of the relevant legislation. Malta shipping legislation also provides important safeguards for financiers, making vessel financing and bareboat charter registration more attractive. Malta ship registration is supported by the largest merchant fleet in Europe. In addition, Malta is a party to most major maritime conventions, including those of the International Labour Organization (ILO). Malta-flagged vessels are required to comply strictly with the provisions of these international conventions

To qualify as a shipping organisation, the organisation must obtain and maintain a licence from the Registrar-General. Its principal objects must include one or more of the specific qualifying activities outlined below. Malta ship registration is available to organisations that meet these licensing and operational requirements.

Qualifying activities include the ownership, operation, administration or management of ships, the holding of equity interests in shipping entities, and the raising of finance in support of shipping operations within the same group.

  • The ownership, operation (under charter or otherwise), administration and management of a ship or ships registered as a Maltese ship and the carrying on of all ancillary financial, security and commercial activities in connection therewith;

  • The ownership, operation (under charter or otherwise), administration and management of a ship or ships registered under the flag of another state and the carrying on of all ancillary financial, security and commercial activities in connection therewith;

  • The holding of shares or other equity interests in entities, whether Maltese or otherwise, established for any of the purposes stated in this section and the carrying on of all ancillary financial, security and commercial activities in connection therewith;

  • The raising of capital through loans, the issue of guarantees or the issue of securities by the company when the purpose of such activity is to achieve the objects stated in this section for the shipping organisation itself or for other shipping organisations within the same group;

  • For the carrying on of such other activities within the maritime sector which the Minister may, on the advice of the authorities, from time to time prescribe by regulations as qualifying for the above purpose.

Malta shipping legislation does not impose general trading or age restrictions. However, the following conditions apply:

  • Ships of ten (10) years and over, but under fifteen (15) years, must pass an inspection by an authorised flag state inspector before or within one month of provisional registration; and

  • Ships of fifteen (15) years and over must pass an inspection by an authorised flag state inspector before provisional registration. As a general rule, trading ships aged twenty-five (25) years and over are not registered.

The procedure for Malta ship registration is relatively straightforward. Provisional registration has the same legal effect as permanent registration and can be completed quickly. A vessel is initially registered provisionally under the Malta flag for six (6) months, which may be extended for one or more periods not exceeding an aggregate of six (6) additional months. During this time, all documentation required for permanent registration, including evidence of ownership and deletion from the former registry, must be finalised. Authority to operate remains subject to compliance with applicable international standards on manning, safety, and pollution prevention

Provisional registration is valid for six (6) months and has the same legal effect as permanent registration. This period may be extended within the statutory limits where satisfactory progress has been made towards completing the requirements for permanent Malta ship registration.

  • An application for registration by the owner or an authorised representative, accompanied where required by an application for a change of name;

  • Proof of qualification to own a Maltese ship; in the case of corporate bodies, the memorandum of association;

  • A copy of the ship’s International Tonnage Certificate, where applicable;

  • A declaration of ownership made before the Registrar by the owner or an authorized representative;

  • Evidence of seaworthiness; in the case of trading vessels, confirmation from class;

  • Where applicable, request for the Administration to authorise the appropriate recognised classification society to issue the ship’s certification;

  • Where applicable, application for Minimum Safe Manning Certificate;

  • Application for Ship Radio Station Licence;

  • Payment of initial and annual registration fees and annual tonnage tax.

Benefits of Malta Ship Registration

The Malta Tonnage Tax System

The Merchant Shipping (Taxation and Other Matters relating to Shipping Organisations) Regulations (“Regulations”) exempt from income tax in Malta any income derived from shipping activities. Eligibility is subject to EU State Aid rules, substance requirements, and formal declaration to the Registrar of Ships.

 

For the exemption from Malta income tax to apply, the vessel has to be operated through a genuine shipping organisation which has assumed risks and responsibilities related to the operation of a tonnage tax ship or to carrying out of shipping activities. The vessel must also declare a tonnage tax ship. A ‘tonnage tax ship’ is a ship of any net tonnage, which is engaged in shipping activities.

 

‘Shipping activities’ are defined in the Regulations as the international carriage of goods or passengers by sea in terms of the EU Maritime State Aid Guidelines and such other activities that have been approved or considered as eligible for tonnage tax purposes by the European Commission and activities as are integral or directly linked to the business of operating tonnage tax ships, when carried out in conjunction with activities of international carriage of good or passengers, including commercial yachts, as well as ancillary activities qualifying in terms of the Regulations.

 

The regulations include the following eligible vessels: cable laying, pipe laying, research vessels and multi-purpose, break-bulk and other types of support vessels. Specifically excluded vessels are: fishing and fish factory ships, private yachts and ships used primarily for sport or recreation; fixed offshore installations and floating storage units; non-ocean going tug boats and dredgers, ships whose main purpose is to provide goods or services normally provided on land, stationary ships employed for hotel and or catering operations (floating hotels or restaurants), ships employed mainly as gambling and/or casinos (floating or cruising casinos), non-propelled barges.

 

A shipping organisation must own, operate, administer or manage at least 60% of its total tonnage under the flag of an EU/EEA state. The Regulation allows ships registered in any EU/EEA state other than Malta to qualify for the regime if an amount equivalent to the Malta tonnage tax is paid to the Malta ship registry. Non-EEA ships will be able to benefit from the Malta tonnage tax when their commercial and strategic management takes place from an EU/EEA country.

 

Separate accounting must be kept for receipts and payments relating to shipping activities and activities relating to any other business. Tax returns and other documentation should also distinguish clearly eligible and non-eligible income; and Respective ship registration fees and tonnage tax should be paid.

  • ships may be registered in the name of legally constituted corporate bodies or entities irrespective of nationality, or by EU citizens;

  • twenty-four (24) hours, seven (7) days a week service in respect of urgent matters;

  • low company formation, ship registration and tonnage tax costs;

  • Maltese law provides for registration of yachts that are being built or equipped;

  • attractive tax incentives to yachts and superyachts owners encouraging commercial operation;

  • no restrictions on the sale or mortgaging of Maltese registered yachts and superyachts;

  • a dynamic registration with one of the largest ship registers in the world and very active in EU fora and international organisations such as the International Maritime Organization (“IMO”);

  • a sovereign state, member of the EU with political, fiscal and social stability;

  • progressive reduction in registration and tonnage tax costs for younger ships;

  • incentives may also be extended to smaller ships;

  • no restrictions on the nationality of the master, officers and crew;

  • no trading restrictions, with preferential treatment for Maltese ships in certain ports.

 

Malta is an international maritime centre providing a full range of maritime services to support Malta ship registration.

 

Attractive incentives for owners, registered charterers, and financiers of Maltese ships of over 1,000 net tonnage.

  • Serious and proficient maritime administration supporting Malta ship registration;

  • Adherence to international standards through the flag state inspectorate;

  • Sound multilateral and bilateral relations;

  • Active participation in international shipping fora, strengthening the reputation of Malta ship registration.

Malta shipping law provides for Malta ship registration of vessels that are under construction or being equipped.


Requirements relating, among other matters, to the survey and safety of completed ships, as well as the declaration of ownership where the builder has not yet delivered the vessel to the owner, are suspended until construction is completed or delivery has taken place.


Vessels classified as trading ships must be built under the supervision of a recognised organisation before completing Malta ship registration.

Malta bareboat charter registration allows ship owners to maximise the use of their vessels by providing greater operational flexibility. Maltese law permits two forms of Malta bareboat charter registration: the bareboat charter registration of foreign ships under the Malta flag and the bareboat charter registration of Maltese ships under a foreign flag.

 

The main legal principles are the compatibility of the two registries and that matters relating to title, mortgages, and encumbrances are governed by the underlying registry. The operation of the vessel falls under the jurisdiction of the bareboat charter registry. Foreign ship registries declared compatible by the Minister responsible for shipping are listed in the List of Compatible Ship Registries.

 

Within these parameters, vessels registered under a Malta bareboat charter enjoy the same rights, privileges, and obligations as any other ship registered in Malta.

 

 

A bareboat charter registration remains valid for the duration of the bareboat charter or until the expiry of the underlying registration, whichever is shorter, but in no case for more than two (2) years. The registration may also be extended.

 

The requirements and registration procedure for Malta bareboat charter registration are similar to those for standard vessel registration, subject to the following exceptions:

  • The yacht is bareboat chartered to a body corporate, entity, or other person qualified to own a Malta vessel;

  • The yacht is not a Maltese yacht and is registered in a compatible registry;

  • The yacht is not registered in another bareboat registry;

The maximum period for such registration is two (2) years, which period may be further extended for additional periods of two (2) years each should the parties involved agree to do so. The registration procedure does not differ much from normal registration of a vessel and the documents to be filed comprise a declaration of bareboat charter accompanied by the charter agreement together with consent letters from the underlying registry, owners and mortgagees.

Vessel registered as bareboat charter need to conform to the same obligations and also benefit from the same rights and privileges accorded to vessels registered under the Malta flag.

Bareboat Charter Registration of Maltese ships under a foreign flag.

The first step to carry out this type of registration involves the issue of consent by the Maltese maritime authority to that effect. Such consent will only be issued upon filing and review of the pertinent documentation such as:

  • the application for registration by the charterer or an authorised representative;

  • a declaration of bareboat charter accompanied by the charter agreement;

  • a transcript or an extract of the underlying registration;

  • a copy of the yacht’s International Tonnage Certificate; and

  • the consent in writing of the underlying registry, owner and mortgagees.

Any yacht may be registered under the Malta flag. Malta yacht registration is available for both pleasure and commercial use. A pleasure yacht, as defined by the Maltese Merchant Shipping Directorate, is a yacht of six (6) metres or more in length that does not carry passengers for reward and is not engaged in trade.

A commercial yacht is a yacht of not less than fifteen (15) metres in length that does not carry cargo, carries no more than twelve (12) passengers, and is operated by the owner or the body corporate owning the yacht for commercial purposes.

The following classes of yachts qualify for commercial registration:

  • Yachts in commercial use of not less than fifteen (15) metres in length and not more than twenty-four (24) metres.

  • Superyachts in commercial use of more than twenty-four (24) metres in length and less than five hundred (500) gross tonnes.

  • Superyachts in commercial use of more than twenty-four (24) metres in length and five hundred (500) gross tonnes and over.

Under Malta shipping legislation, Malta yacht registration is normally completed in two stages: Provisional Registration followed by Permanent Registration. To obtain Provisional Registration, the required documentation must be submitted to the Merchant Shipping Directorate, after which a provisional certificate of registration is issued.

Provisional Registration is valid for six months, during which the remaining documents required for Permanent Registration must be submitted. The six-month provisional registration period may be extended where necessary.

The Malta Commercial Yacht Code (“Malta Code”) was introduced in 2006 and was developed largely in line with established industry standards. Unlike other codes, it combines the requirements for yachts below twenty-four (24) metres and yachts above twenty-four (24) metres into a single framework. Malta commercial yacht registration under the Malta Code has gained widespread acceptance and recognition within the yachting industry.

Maltese law offers significant advantages for the operation of commercial yachts. Malta commercial yacht registration allows yacht owners to register their vessels under the Malta flag as commercial yachts, enabling them to pay annual tonnage tax based on the yacht’s tonnage instead of income tax on earnings, while also benefiting from savings on construction and operational costs.

The following classes of yachts qualify for commercial registration:

  • Yachts in commercial use of not less than fifteen (15) metres in length and not more than twenty-four (24) metres.

  • Superyachts in commercial use of more than twenty-four (24) metres in length and less than five hundred (500) gross tonnes.

  • Superyachts in commercial use of more than twenty-four (24) metres in length and five hundred (500) gross tonnes and over.

  • Shipping organisations are exempt from paying tax on income derived from shipping activities under the Income Tax Act. No minimum tonnage requirement applies.

  • Qualifying shipping organisations may also file a simplified tax declaration instead of a regular income tax return.

  • The regulations also provide that the profits derived from shipping activities are exempt from tax in the hands of the shareholders following a distribution thereto.

  • The transfer of shares in a shipping organisation is subject to capital gains and stamp duty exemptions.

  • Commercial shipping activities are generally subject to extensive VAT exemptions.

  • Ship management activities (technical management and crew management activities) will continue to benefit from the exemption under the Income Tax Act.

  • The Regulations also grant an exemption from tax under the Income Tax Act on any income, profits or gains derived from the sale or other transfer of ship tonnage tax ship which had been acquired or sold whilst under the tonnage tax system or from the disposal of any rights to acquire a ship which when delivered would qualify as a tonnage tax ship.

If the conditions for the Malta tonnage tax regime are not met, or a shipping company or ship manager chooses to opt out of the benefits and concessions available under the regime, profits from shipping activities will be subject to Malta’s standard corporate income tax rate of 35%.

However, upon the distribution of those taxed shipping profits, the shareholders may be entitled to claim a 6/7ths refund of the Malta tax paid by the shipping company. As a result, where the Malta tonnage tax regime does not apply, the effective tax rate on distributed profits may be reduced to 5%.

The Malta VAT Yacht Leasing Scheme

In March 2020, Malta published guidelines under Item 12 of Part Two of the Third Schedule to the Value Added Tax Act regarding VAT treatment options for leased pleasure yachts. The guidelines set out how Malta yacht VAT applies to yacht leasing arrangements, with particular emphasis on the use and enjoyment provisions. They also reflect current EU developments and practices.

 

With respect to operating leases, a yacht owner or lessor may lease a yacht to a lessee for an agreed consideration over a specified period, whether under a short-term or long-term lease. Under this structure, VAT is payable by the lessee on the lease instalments and is accounted for on a quarterly basis according to the yacht’s actual use and enjoyment within EU territorial waters.

 

To benefit from this Malta yacht VAT treatment, the following conditions must be satisfied:

  • The lessor must be a Maltese entity and possess a valid Maltese VAT identification number to be eligible for the Yacht Leasing Scheme;

  • There must be a yacht leasing agreement in place between the lessor and lessee setting out the conditions of the lease;

  • The lessee must be a non-taxable person, i.e. not using the yacht for commercial business purposes;

  • The yacht must be placed at the disposal of the lessee in Malta;

  • The lessor must maintain documentary and/or technological data to determine the actual use and enjoyment of the pleasure boat within and outside EU territorial waters;

  • An annual declaration must be filed by the lessor with the Commissioner for Revenue within the prescribed timeframe.

The scheme operates according to the proportion of the yacht’s use and enjoyment within and outside EU territorial waters. As a general rule, VAT at the standard rate of 18% applies where the place of supply is Malta. However, where the yacht is effectively used and enjoyed outside EU territorial waters, an adjustment method applies. As a result, Malta yacht VAT is charged only on the portion of the lease relating to the yacht’s actual use and enjoyment within EU territorial waters, while no VAT is due on the portion used outside EU territorial waters.

 

Accordingly, Malta VAT applies only to the yacht’s use within EU territorial waters. Depending on the yacht’s effective use and enjoyment, the applicable VAT rate may be significantly reduced, making it one of the most competitive VAT treatments available within the EU.

 

The VAT treatment also provides flexibility when ending a lease. If, at the end of the lease, the lessor sells the yacht in Malta, VAT at the standard rate of 18% is charged on the yacht’s value upon sale.

 

Where the Maltese VAT authorities are satisfied that all applicable rules and requirements have been met, a VAT Paid Certificate will be issued.

Yachts intended for commercial use may opt for VAT deferment on the importation as follows:

  • Obtaining a VAT deferment on the importation of the commercial yacht by a Maltese owning entity having a Maltese VAT registration; without needing to set up a bank guarantee (as previously required);

  • Obtaining a VAT deferment on the importation of the commercial yacht by an EU owning entity having a Maltese VAT registration, provided that the company duly appoints a VAT representative in Malta, without needing to set up a bank guarantee (as previously required); or

  • Obtaining a VAT deferment on the importation of the commercial yacht by a non-EU owning entity on provision by the importing entity of a bank guarantee amounting to the VAT payable on 0.75% of the value of the yacht, capped at one million euro;

To benefit from the first Malta yacht VAT deferment option, the owner must incorporate a shipping company in Malta and obtain a valid Maltese VAT identification number. In each case, the commercial yacht must physically arrive in Malta to complete the required VAT and Customs procedures. Once these formalities are completed, the yacht is imported into the European Union with the VAT payment deferred rather than paid at the time of importation, allowing the yacht to circulate freely within EU waters.

There are no restrictions on the nationality of the master, officers, or crew engaged on Maltese yachts and superyachts under Malta yacht registration.

A commercially registered superyacht exceeding twenty-four (24) metres in length will be issued with a Minimum Safe Manning Certificate following the submission and approval of an application for a safe manning document. Commercial yachts of not more than twenty-four (24) metres in length are not issued with a Minimum Safe Manning Certificate but must comply with the minimum manning requirements set out in the Commercial Yacht Code.

Foreign certificates issued under the International Convention on Standards of Training, Certification and Watchkeeping for Seafarers (STCW) require an endorsement from the Maltese Administration confirming their recognition. Other yacht certifications may also be accepted on a case-by-case basis as part of the Malta yacht registration process.

An initial survey is required to establish compliance with the Commercial Yacht Code (“Code”) as part of Malta commercial yacht registration. Alternative arrangements may be agreed between the surveyor and the Administration through a transparent and documented procedure. Once compliance with the Code is confirmed, the Administration issues a Certificate of Compliance to Trade as a Commercial Yacht, enabling operational registration under Malta commercial yacht registration.

Compliance surveys may be carried out by appointed ship surveyors or by a recognised organisation.

All yachts below twenty-four (24) metres in length must undergo an intermediate survey, while yachts of twenty-four (24) metres or more are subject to annual surveys under Malta commercial yacht registration requirements.

The Certificate of Compliance is renewable every five (5) years. Surveys may be conducted by Appointed Ship Surveyors or by a Recognised Organisation. During renewal, a survey equivalent in scope to the initial survey must be completed.

Malta yachts operated under enhanced cleanliness and safety standards may be awarded a Malta yacht certification known as the Green Yacht Notation. By recognising higher safety and environmental performance, this certification makes above-standard yacht operations more attractive.

Yachts holding this Malta yacht certification benefit from several advantages, including charter preference, continuous operational improvement, an enhanced industry image, and increased motivation and pride among crew members.

A yacht is first registered provisionally under the Malta flag for six (6) months as part of Malta yacht registration. This period may be extended for one or more additional periods, provided that the total extension does not exceed an aggregate of six (6) months, during which all required documentation must be finalised.

The following are the requirements for provisional Malta yacht registration:

  • application for registration by owner or an authorized representative;

  • proof of qualification to own a Maltese ship (in the case of a body corporate, the memorandum and articles of association and in the case of non-Maltese owners, appointment of a resident agent);

  • declaration of ownership made in front of the authorities by the owner or an authorized representative;

  • where applicable, copy of the current yacht’s International Tonnage Certificate;

  • where applicable, application for Ship Radio Station Licence;

  • payment of initial registration fees and annual tonnage tax.

The following documents must also be submitted during provisional Malta yacht registration:

  • a builder’s certificate, if the vessel has not been registered elsewhere; otherwise a bill of sale or any other document for registry;

  • a cancellation of registry certificate from the last country of registry, showing vessel to be free from encumbrances or otherwise;

  • in the cases of SOLAS (International Convention for the Safety of Life at Sea) ships, copy of the last updated Continuous Synopsis Record issued by the Administration where the ship was last documented;

  • Certificate of Survey and a copy of the International Tonnage Certificate issued by an approved surveyor of ships;

  • evidence that the yacht has been marked in accordance with law.

Advantages of registering a ship under the Malta flag include:

  • ships may be registered in the name of legally constituted corporate bodies or entities irrespective of nationality, or by European Union citizens.

  • low company formation, ship registration and tonnage tax costs;

  • progressive reduction in registration and tonnage tax costs for younger ships;

  • these incentives may also be extended to smaller ships;

  • no restrictions on the nationality of the master, officers and crew;

  • no restrictions on the sale or transfer of shares of a company owning Maltese ships;

  • no restrictions on the sale and mortgaging of Maltese ships;

  • no trading restrictions and, preferential treatment to Maltese ships in certain ports;

  • twenty four (24) hour, seven (7) days a week service in respect of urgent matters;

  • Malta is an international maritime centre providing the whole range of maritime services;

  • attractive incentives to owners, registered charterers and financiers of Maltese ships of over 1,000 net tonnage.

Premium Ancillary Services

In addition to the regulatory, structuring and maritime advisory services described above, Promethean provides a number of premium ancillary services supporting yacht owners, operators and private clients active within the yachting sector, including Malta yacht charter services.


Through our established industry network, we assist individuals and family offices seeking yacht charter opportunities in Malta and across Europe. Acting on an introduction and facilitation basis, we connect clients with reputable charter brokers and operators specialising in luxury yacht charter arrangements, ensuring access to trusted providers and professionally managed charter experiences.


We also assist yacht owners who wish to place their vessels into charter operations. Owners may approach us to be introduced to recognised yacht charter management companies and charter brokers operating in Malta and other key Mediterranean yachting jurisdictions. Through these introductions, owners may explore opportunities to generate charter income while ensuring their vessels are managed by experienced and reputable industry participants.


These Malta yacht charter services complement our core shipping and maritime advisory offering and provide clients with practical access to trusted professionals within Malta’s established yachting ecosystem.

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