Since 2013 we are represented in Split

Croatia is our favorite MED destination!

As part of Croatia’s accession to the EU in 2013, we have been providing tax transfer services to many yachts. Since then, we have been continuously expanding our Croatia business, providing on-site support to private owners and charter companies and working on innovative maritime concepts.

With Vedran Anic and Ivica Baban, our tax advisor, we have won two very well-known and reliable partners in Split.

Together we can offer our clients in our specialized areas even more comprehensive support in Croatia:Private and commercial yacht operations in Croatia: Holding concept, company start-ups, flag and registrations, ongoing administrative, legal and tax support, Tax Agency, development of individual charter concepts and their implementation, representation before all authorities.

 

 

 

The new CPS-Croatia-Charter-Model (c) – an Innovative and Economic Alternative for your Yacht-Buy and -Operation in the EU

The well known Leasing-Schemes for a turbo-VAT-taxation of Yachts are history. There is no replacement.

Against this background, we asked whether it was necessary at all to have

(a)    a VAT PAID status for his yacht and

(b)   whether there are legal and, where appropriate, more economical alternatives.

For many yachts, the taxes once paid are irretrievably lost, especially if the yacht is e.g. sold from the EU to a third country. If the yacht is traveling outside the EU for more than 3 years, it loses its VAT PAID status even without a change of ownership and must then be re-taxed at the time of its re-entry into the EU at the yacht's current value. The market has shown that taxed and untaxed yachts usually have the same market value and the differences are not significant.

In the light of the findings, we have elsewhere sought innovative and legal forms.

  •        Legal and business center is a commercial shipping company under Croatian law.
  •        The latter purchases the yacht as a commercial asset.
  •        Although the yacht is commercial, Croatia does not need to comply with a commercial code. Registration and use is therefore often easier.
  •        The yacht must be officially offered for charter on the market, however, there is no minimum chartering rate to be achieved,
  •        have individual and foreign characters per tax year to achieve a certain but in practice good economic turnover,
  •        to which 13% of Croatian VAT is then paid, but which are deductible as an expense.
  •        Otherwise, the yacht can be chartered by the UBO and his family at special price rates, with the requirement that no 100% self-charter per tax year may be made.     The model is thus suitable for owners who would like to offer a chartering for partial cost recovery but otherwise would like to use the yacht themselves via charter.
  •        All core operating costs can be claimed as an expense; and
  •        a depreciation rate of a yacht to be fixed by the shipowner.
  •        CPS Schließmann, as the creator of the design as well as the ongoing administration, offers a full-service program via the Frankfurt and Split offices.

We are convinced that the CPS-Croatia Charter Model © covers an urgent market need and is the solution for many owners of a legal and tax-efficient business, especially those operating less off-shore.