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 new Malta lease is economically suitable for yachts over €3 million due to the complex legal and fiscal design and administrative burden and for those that are actually on a significant scale offshore = non-EU. This clearly limits the range of potential target groups compared to the former Malta lease. I want to introduce an innovative alternative.

The new CPS-Croatia charter model ©

We asked ourselves whether it is necessary to have a VAT PAID status for your yacht or whether there are legal alternatives for owners?

Firstly, it should be noted that once the taxes paid are irretrievable when the yacht is sold, for example, from the EU to a third country. If the yacht travels outside the EU for more than 3 years, it loses its VAT PAID status and has to be taxed at the time of the yacht's return to the EU.

The market has shown that taxed and untaxed yachts tend to have the same market value and the differences are not significant.

We have not been satisfied with the new models from Malta (and analog of Cyprus), and we have also looked for innovative and legal designs elsewhere with the above-mentioned knowledge and impact. Together with my team in Split, I have been working on an alternative design for Croatia for many months. We presented our concept to the Croatian Ministry of Finance at a hearing and submitted binding information for examination. We have just received the information, so to speak, from the press and can only be used for all yachts of EU owners from approx. 700T€ Invest, who do not leave EU waters or leave little, offer a very attractive and economically flexible solution with the highest possible share of own charter!


Here are the most important basic parameters of the CPS-Croatia-Charter-Model© - each case individually designed in detail:

 

  • Legal and business hub is a commercial shipping company under Croatian law.
  • The yacht will be purchased as a commercial asset in return for VAT.
  • Although the yacht is tax-commercial, it is registered under Croatian flag as a PLEASURE yacht, i.e. without the need to fulfill a demanding definition of a commercial code, commercial safe manning or e.g. the Maritime Labor Code.
  • This means that the yacht can be driven even without large licenses required for yachts under commercial codes, e.g. by the owner.
  • The yacht must be officially offered for charter on the market, but there is no minimum chartering rate to be reached.
  • Otherwise, the yacht can be chartered by the UBO and its family at special rates, with only the requirement that no 100% individual charter per tax year should be allowed. This is for owners who would like to offer a charter for partial cost recovery, but would otherwise like to use the yacht themselves.
  • Individual and foreign charters must achieve a certain, well-achieved and economic turnover per tax year;
  • on which 13% Croatian VAT is paid, which is however deductible as an expense.
  • To this end, all core operating costs can be claimed as an expense and
  • a yacht depreciation rate to be decided by the shipping company.
  • Ideally, the shipping company generates a "black number" in a marketing year, in particular to cover all the costs of the yacht operation and administration.
  • CPS Schießmann offers as developer and author a full service program for both design and day-to-day administration through the offices Frankfurt and Split

 

We are convinced that the CPS-Croatia-Charter-Model© meets an urgent demand on the market and for many yacht owners is the solution for an economic operation with legal and tax clarity, especially for those who can no longer find their home in the new Malta lease, which we are now looking at.