Everything you need to know before chartering in Italy

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Welcome to Yacht Charter Market, the weekly newsletter dedicated to the world of yacht charter.

In today’s newsletter:

• Top story: Everything you need to know before chartering in Italy

• Your most clicked yachts from our May newsletters; King Benji for charter with Cecil Wright, 49.9m Thanuja newly refitted with Ocean Independence,  Alfa Nero available to charter with Northrop & Johnson, Mar for charter with BehneMar Yachting

• Zairos: FX & Cross-Currency Solutions for Charter & Asset Payments

• Charter photo: Sunday Exuma dreaming with @myhome

TOP STORY

Everything you need to know before chartering in Italy

From VAT rules, UBO use and compliance essentials, we take a look at the most important things to consider before chartering in the Med's hottest destination.

With its strategic position at the centre of the Mediterranean Sea, idyllic coastline and strong maritime industry, Italy enjoys a high reputation as a yachting hub. However, its customs and legal frameworks may be more complex to navigate than its clear waters. While a complete exposition of Italian charter requirements warrants a deeper analysis than may be offered here there are a number of essential elements that yacht charterers should keep in mind before commencing a charter in Italy. Rachele Bertuccioli, Operations Manager at SOS Yachting Italy, lists the key requirements when chartering in the region.

Firstly, it should be noted that all commercial yachts are allowed to charter in Italy - regardless of their flag or size – without the need of a charter license. However:

• EU-flagged commercial yachts must prove their VAT-paid status or their accountability through adequate documentation

• Non-EU-flagged commercial yachts – if not VAT-paid – must be in free circulation within the EU, meaning that they must have undergone importation.

Owning Companies’ Compliance Duties

Moreover, non-European companies intending to charter in Italy must appoint a VAT representative to act on their behalf. In turn, VAT representatives operating in Italy must comply with the specific subjective and financial requirements set out at article 17 of Italian Presidential Decree (”D.P.R.”) Most notably, from 2025 onwards an Italian VAT representative must obtain a guarantee bond for an amount ranging between 30.000 and 2 million Euro, depending on the number of companies it represents. In the absence of this requirement, an individual or entity may not operate as a fiscal representative in Italy.

European owning companies, on the other hand, may choose to register directly for VAT. In this case, the appointed entity, if any, will act as an agent and not a representative of the owning company. Consequentially, legal liability before the Italian tax authorities for VAT obligations will rest solely on the owning company.

VAT on Charter Activity in Italy

Generally, Italy applies a 22% VAT on the entire charter contract fee, including delivery/re-delivery fee (if any) and operating costs/fuel consumption if not already VAT inclusive.

UBO Use of the Vessel in Italy

Italian law does not acknowledge the commercial activity of an owning company when the majority of its charter contracts as based on the total number of charter days and the total number of charter fees worldwide within a calendar year involve the Ultimate Beneficial Owner (“UBO”) or his/her family members or connected entities.

Nevertheless, the UBO may use his/her yacht in Italy provided that:

• a valid charter contract is executed, and VAT is applied in accordance with the official market price list.

• the charter rate may be discounted, as long as the cost reduction does not exceed the standard commission charged by brokers.

• There is documentary evidence of sufficient funds to cover the charter fee.

Find out more here.

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TOP CHARTER YACHTS FROM MAY

All of your favourite yachts featured in the Yacht Charter Market newsletter last month;

47m King Benji available for charter with Cecil Wright

• 10 guests 5 staterooms

• Rates from €250,000 per week

• Find out more here.

49.9m Thanuja newly refitted and for charter with Ocean Independence

• 10 guests in 5 cabins with 6 crew

• Rates from EUR 210,000

• Regions: Mediterranean France and Italy

• Find out more here.

82m Alfa Nero available to charter with Northrop & Johnson

• 12 guests in 6 staterooms with 26 crew

• Rates from €812,500 per week

• Cruising region: Mediterranean

• Read the full onboard here.

🚀 Y.CO announced 49.9m Fifty has joined the charter fleet

• 10 guests in 5 staterooms

• €270,000 p/w

• Read the full onboard article here and reach out to the Y.CO team now.

🌟 107m Benetti superyacht Mar for charter with BehneMar Yachting

• 12 guests in 8 staterooms

• From €1,800,000 per week + expenses

• Find out more here.

POST OF THE WEEK

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