Is the end finally in sight for Spanish matriculation tax?

Perhaps it is a reaction to the loss of the competitive advantage that the French charter market enjoyed through the Exemption or perhaps it is just a realization by the Spanish Government that their Matriculation Tax on charters was driving more potential revenue away than it was generating, but there are changes taking place which we believe will lead to the total abolition of the Spanish Matriculation Tax. This tax was ruled illegal by the EU commission but has for many years enforced despite the EU Commission and industry’s protests.

Under12m matriculation tax abolished

From January 1, 2011, yachts under 12m (39ft) in length are exempt from the need to be matriculated. As long as the boat carries the CE mark, completing a simple form and producing the purchase invoice will suffice to obtain a registration certificate. Obtaining the three legal documents on sea-worthiness and radio communications that have so far been required will no longer be necessary. This applies to both charter boats and those for private use.

Exemption for Canary Islands registered Superyachts

Announced on 25th February was the news that the Spanish government has confirmed the matriculation tax exemption for superyachts listed with the Canary Islands Special Registry and used for commercial purposes. What was not clear from this announcement was, whether or not this exemption applies only to these yachts whilst operating in the local waters of the Canary Islands or throughout all Spanish waters.

These changes to Matriculation Tax implementation are a welcome first step toward what may eventually become a total abolition?