Sailing Towards a New Fiscal Horizon: A Proposed VAT Strategy to Boost Spain's Yachting Industry

Driving Spain’s competitiveness in the yachting world relies on updating its fiscal framework, especially concerning Value Added Tax (VAT). This might include adopting technical measures that are fully aligned with EU regulations, thereby attracting specialist investment and consolidating a high-value economic activity nationwide.

One such technical measure could be incorporating into domestic legislation the faculty provided for in Article 59 bis of Directive 2006/112/EC. This regulation allows countries to exclude from VAT taxable income that portion of the charter fee that occurs (pro rata temporis) in international waters. This discretionary option has seen successful adoption by Spain’s competitors, such as France and Italy, making it one of the distinctive elements in their yachting offerings.

The likely fiscal impact of such reform would arguably be limited. This is because most of the charter sailing in Spain happens within territorial waters. Yet, the positive impact on competitiveness could be substantial; it would align Spain’s yachting offers with European standards, increasing confidence among international operators and driving a strategic industry known to generate qualified employment, bolster regional economies, and promote sustainable, high-value tourism.

In essence, adopting Article 59 bis of Directive 2006/112/EC would be a strategically necessary measure to advance Spain’s consolidation as a leading destination in the international charter industry, particularly in the superyacht segment.