CPS-Croatia-Yacht-Charter-Model®
We have a presence in SPLIT since 2013
Croatia is our favourite destination in the Mediterranean!
Following Croatia’s accession to the EU in 2013, we assisted with the tax-efficient transfer of numerous yachts. Since then, we have been continuously expanding our operations in Croatia, supporting private owners and charter companies on the ground and developing innovative maritime concepts.
With lawyer Vedran Anic and tax adviser Ivica Baban, we have gained two highly distinguished partners in Split.
In 2019, the team was expanded to include registration specialist Mate Petrina, as well as the yacht charter and maintenance team led by Ante Vujcic and Tea Novakovic.
Together, we are now able to offer our clients even more comprehensive support in Croatia across our specialist areas:
Private and commercial yacht operations in Croatia: holding company structures, company formations, flags and registrations, ongoing administrative, legal and tax support, tax agency services, the development and implementation of bespoke charter concepts, and representation before all relevant authorities.
In addition, we offer services relating to: yacht charter, maintenance and moorings
⚓ CPS-Croatia-Yacht-Charter-Model® – An innovative solution for yacht operations in the EU
Yachts in Croatia are subject to specific legal and tax regulations. This applies in particular to their use, registration, taxation and integration into international structures.
A particular focus is placed on a specially developed model for the tax-optimised structuring of the purchase and operation of yachts within the Croatian context. The CPS Croatia Yacht Charter Model® offers yacht owners a legally sound and economically attractive alternative to the traditional purchase and operation of yachts within the European Union. Particularly following the phasing out of the well-known leasing models for VAT optimisation, this model represents a modern solution.
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Tax-optimised structure for yachts in Croatia – for use worldwide
A bespoke model for tax structuring has been developed for the purchase and operation of yachts in Croatia. This model takes particular account of requirements relating to usage, VAT and international integration, and enables a legally compliant structure to be tailored to the specific circumstances of each owner.
Bespoke model ✔ – legally compliant ✔
Yacht tax optimisation in Croatia – Yacht VAT model in Croatia – Yacht structuring in Croatia
*** Translated with www.DeepL.com/Translator (free version) ***
Key elements of the model
- Establishment of a specialised Croatian shipping company structure: The yacht is acquired as a commercial asset, VAT-neutral, by a shipping company structure incorporated under Croatian law.
- Charter operations without a minimum charter quota: The yacht must be officially offered for charter on the market. However, there is no mandatory minimum charter quota, which allows for flexibility in its use.
- Own-use and third-party charters: The beneficial owner (UBO) and their family may use the yacht for their own purposes on arm’s-length terms, provided that exclusive use for the entire tax year is avoided. A minimum of 10% must be allocated to third-party charters.
- Tax advantages: Income from chartering from Croatia is subject to the reduced Croatian VAT rate of 13 %, which can be claimed as a business expense. Charters from other EU countries are subject to the VAT authorities in those countries.
- Depreciation options: The yacht can be depreciated via the Croatian structure, which offers additional tax advantages.
This structured assessment helps you to determine whether a yacht ownership and charter model is generally suited to your financial profile and objectives. The assessment covers your place of residence, investment parameters, business intentions and structural requirements.
Please note: Tax and regulatory frameworks in the yachting sector change regularly. The following information is intended as a general guide only and is no substitute for an assessment of your specific circumstances.
Advantages over traditional models
- Avoiding VAT losses: If the yacht is sold to a third country or is absent from the EU for an extended period, the ‘VAT PAID’ status may be lost. The CPS model minimises this risk.
- Legal certainty: Compliance with the Croatian legal framework and the official registration of the yacht ensure a high degree of legal certainty.
- Flexibility: The model allows for both private use and commercial chartering, without any rigid requirements.
Our services
We offer comprehensive support in implementing the CPS Croatia Yacht Charter Model®:
Ensuring project compliance in the preparation of our model
Establishment, domiciliation and management of a specialised Croatian shipping company structure based in Split, which also complies with VGA and non-tax requirements
Structuring the purchase or construction of the yacht in line with legal and tax objectives
Registration and flagging of the yacht in line with the project
Drafting and review of charter agreements
Ongoing tax advice and representation before the authorities, accounting and audits
Ongoing administrative and legal support
Support with chartering to third parties and chartering through partners
📞 Contact us
We would be happy to provide you with personalised advice:
- Telefon: +49 – 69 / 663 779 0
- E-Mail: mail@der-yacht-anwalt.de
We look forward to providing you with legal support for your yacht project in Croatia.
read more: STREIFZUG YACHTING 2021: Rechtliche und steuerliche Superyachtoptimierung