31 Jan What you should know about Brexit in the nautical sector:
INTRODUCTION – NOTICE TO NAVIGATORS
During the transitional period (until 31/12/2020):
– The tax situation of the vessels.
– The employment situation of the British in Spain and the Spaniards in the United Kingdom.
– Social security contributions.
– The rental of boats with British flag.
– Nautical qualifications.
– Etc., etc. ,…
“THEY WILL NOT BE AFFECTED IN ANY ASPECT – NOTHING WILL CHANGE”
– MAIN EFFECT OF THE BREXIT THAT THE UNITED KINGDOM NO LONGER IS A MEMBER COUNTRY OF THE EUROPEAN UNION AND
CONSEQUENCE FOR EMBARCATIONS AND PLEASURE YACHTS:
“THIRD COUNTRY FLAGS”
– The importance of the transitional period is that finally between the United Kingdom and the EUROPEAN UNION a
satisfactory agreement is reached for both parties to avoid a tough BREXIT.
– The effects of an undealt-out exit are unpredictable, although Royal Decree Law 5/2019 of 1 March was adopted by
contingency measures in the face of the withdrawal of the United Kingdom from Great Britain and Northern Ireland
from the European Union without the agreement provided for in Article 50 of the Treaty on European Union.
– Flagged yachts in the United Kingdom (whether British or not owned) on Spanish territory:
• With VAT paid: ……… community merchandise
• Exit from Community waters and stay longer than 3 years, loses the status of Community goods, like any other
– UK-flagged yachts (whether British or not owned) entering Spanish waters:
• Prior to BREXIT: If they have the VAT paid they can enter Community waters as if it were a Community vessel.
• New after BREXIT: Non-Community goods will be considered and when entering European Union waters they will do so
under temporary import.
What does the temporary import regime mean?
That the yacht can remain in EU waters without paying VAT and tariff for a limited period of time (18 months).
What requirements must be met?
That the yacht is flagged in a third country, that the holder is established outside the EU and that the use of
the yacht is by persons established outside the EU, except for special cases.
– Purchase of second-hand yacht registered in the UK:
• With VAT paid and in Community waters: its acquisition will be subject to the Property Transfer Tax (ITP).
• No VAT paid: free import (VAT payment and tariff).
– Buying a new yacht made in the UK
• When introducing it into the territory of the European Union, VAT must be paid, and tariff if applicable, as non-
Community goods are considered.
• Spanish Dealers . . . importers.
• Intra-Community VAT on imports.
– Sale of yachts in Spain to a British citizen
• If the acquirer leaves the yacht in Spanish waters: VAT if it is new or the ITP if it is second-hand.
• If the acquirer takes the yacht out of Community waters: it will be necessary to process the corresponding export
DUA and the physical departure of the yacht and accreditation of that departure to the Customs of origin in order
to improve this export.
– Boat construction
• Serially constructed vessels: CE marking.
• EC certificates from notified bodies of the United Kingdom shall not be valid in the European Union, unless
– Repair of flagship yachts in the United Kingdom
• Repair & Refit: exempt from VAT – Active Processing Traffic regime (TPA).
– British-flagged yachts and pleasure boats
• British-flagged boats may be rented in Spain if they obtain the waiver or flag waiver and for this they need to
prove that, given their special characteristics, there are no European Union-flagged yachts that meet these
– British recreational nautical qualifications
• Valid for British flag: private use or rental (if they can be rented).
– To rent a boat from another flag.
– To apply for authorization on the basis of foreign capacity.
– “Qualifications covered by the STCW Convention will remain valid.”
“FINAL REMEMBER: UNTIL 31/12/2020 NOTHING WILL CHANGE”
Information provided courtesy of:
Bufete Albors, Galiano & Portales
Bufete Leon Von Ordanza abogados
Cambra de Comerç Mallorca