 Italian Leasing
Yacht Finance Ltd is delighted to be able to offer clients Italian Leasing courtesy of SelmaBipiemme Leasing of Milan. (www.selmabipiemme.it)
Benefits
If you have to pay VAT and cannot recover it when purchasing a yacht, Italian Leasing could save you money. Italian Leasing is fully compliant with EU VAT regulations. It should not be confused with ‘cross-border’ arrangements. The structure is very simple; you lease your yacht for a period of between three and ten years and pay quarterly rentals. At the end of the lease, you purchase the yacht for 1% of its original price. Rentals are based on Euro interest rates (Euribor currently 2.15%). Rentals attract a reduced rate of VAT according to the following table:-
Type of leisure craft |
% of lease fee subject to VAT (20%) |
Equivalent VAT |
Motor or sail boat more than 24 metres long
|
30% |
6% |
| Sailboats from 20.1 to 24 metres in length and motorboats from 16.01 to 24 metres in length |
40% |
8% |
Sailboats from 10.1 to 20 metres in length and motorboats from 12.01 to 16 metres in length
|
50% |
10% |
| Sailboats up to 10 metres in length and motorboats from 7.51 to 12 metres in length |
60% |
12% |
| Motorboats up to 7.50 metres in length |
90% |
18% |
Example 1:
A private individual commissioned a new racing yacht which he will race 4-5 weeks of the year. The rest of the time it will be chartered for corporate work. We were able to structure a lease denominated in Euros for 80% of the yacht’s price under which the rentals are exempt from VAT. Thus the client does not need to register for VAT.
Example 2:
Private individual owns 53’ yacht based in Mediterranean but British flagged. Three year Italian Lease enables owner to pay less than the usual VAT-inclusive price and spread payments over three years.
Here are some more details of the lessor, SelmaBipiemme SpA. Together with their own explanation of the scheme.
SelmaBipiemme Leasing
SelmaBipiemme is a member of the Mediobanca Group, a guarantee of the solidity of the company and privacy in negotiations. With many years of professional experience, SelmaBipiemme is able to handle extremely complex affairs, as demonstrated by its status as the first leasing company ever to be a member of UCINA (National Union of Shipyards and Nautical Industries) and the only one on the UCINA Board of Directors.
On the basis of client specifications, SelmaBipiemme Leasing purchases new or used watercraft and leases them to the client. The lease payments and duration are agreed with the client on the basis of their needs. Regardless of the type of watercraft, the client only makes an initial payment in proportion to the value of the craft. They then make regular lease payments (monthly, quarterly, etc.) for the period of the contract, at which point they may opt to pay a previously agreed amount to become full owner of the boat. Nautical Leasing for leisure craft offers special VAT conditions. The portion of the lease fee subject to VAT is determined as a flat-rate percentage on the basis of the length and type of the boat, as shown in the table above.
|
