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Tax changes set to boost Mallorca's yachting industry
The European Commision responded yesterday to lobby groups representing the Balearic & Spanish nautical sector, by asking the Spanish government to modify their controversial nautical taxes within the next two months. This may mean that the matriculation tax imposed on yachts over the length of 15 metres could be abandoned.
Currently, Spanish law demands that commerically chartered yachts greater than 15 metres pay 12% of its value in matriculation tax every year if it is operating within Spanish waters, even if the yacht is taxed and registered in another European country. Charter operators claim that the tax has restricted the growth of the yacht charter industry as Spain is simply uncompetitive when compared with other Mediterranean countries.
Brussels has ruled that the Spanish law is discriminatory and that it breaches the EU principles of freedom of movement of people and goods as noted in the EU constitution.
It is thought that many millions of euros are lost each year in Mallorca through the deployment of this tax. In addition, if the charter industry is allowed to flourish, many jobs would be created, which makes the scrapping of the tax a no-brainer. Majorca is an ideal location for yacht charter thanks to it's beautiful coastline. WIth Spains general election being held this weekend, and the pro-business Partido Popular party expected to win, the nautical sector will be hoping that they will finally see the end of the matriculation tax.
For information on yacht & boat charters in Majorca, please see our pages on Boat & Yacht Charter in Mallorca.
