Purchasing a recreational boat in Spain

This article was written by León von Ondarza Fuster, and originally published in the Spanish language magazine Skipper, under the title “Comprar una embarcación. Cuatro situaciones diferentes.”

Based on Mallorca, León von Ondarza Fuster leads a practice that is specialised in maritime law with a focus on pleasure crafts, be it for recreational or commercial use.

New boat with business operator seller and private buyer

This is the case of a private individual who contacts a nautical company or a shipyard with the intention of purchasing a new boat.

Legal regulation: Articles 117 to 121 of the Law 14/2014 on Maritime Navigation, dated July 24, shall apply and – in matters not regulated therein – the rules stipulated in articles 1445 and the following of the Civil Code shall be applicable. And since this is a sale from an establishment serving the public to a consumer, the consumer and user protection regulations set out in the Royal Legislative Decree 1/2007, dated November 16, also apply to actions resulting from the lack of conformity of the goods, instead of the actions for dispossession and hidden defects that maritime law specifically provides for.

The purchase and sale must always be documented in writing in a form of a private or public contract, or in specific cases of a purchase from a nautical company – a purchase invoice. In order to be effective against third parties, the vessel must be registered in the Ship Register of a Maritime Captaincy or a Maritime District.

Taxes and fees: There are two taxes related to the purchase of a new boat:

• VAT (Value Added Tax): The purchase of a new boat is subject to VAT at the general rate of 21% applicable in Spain, or at the rate applicable in the EU country of purchase, unless you choose to pay VAT at the destination, i.e. in Spain. If the purchase is made outside the European Union (EU), import VAT, also at 21%, and the corresponding tariff, which ranges from 0% to 2.7% depending on the vessel’s length, type of navigation, and origin, must be paid upon importing the vessel into EU territory.

• IEDMT (Special Tax on Certain Means of Transportation): known as the registration tax, which must be paid if the vessel exceeds 8 meters in length, at a rate of 12% of the purchase price exclusive of VAT. If the length is below that level, the Tax Exemption Form 06 must be submitted at the Revenue Service.

The fee associated with the purchase is the T-0 Rate for navigation aids, a one-time payment for the entire useful life of the vessel made to the corresponding Port Authority prior to registration, if the vessel is less than 9 meters long and motorized. If the vessel exceeds that length or is a sailboat greater than 12 meters, the payment is annual and is usually made through the port or marina where the vessel is moored.

Documentation: The basic documents that the nautical company or shipyard must provide to the buyer include the purchase invoice, the Declaration of Conformity (a mandatory document issued by the shipyard certifying the boat meets the construction and design requirements established by the European Union), the CE certificate (if applicable), the engine certificate(s), and the owner’s manual.

Registration of the vessel[1]: Since the case at hand is that of a purchase by a private individual who will use the vessel for private purposes, the list where the vessel must be registered is the 7th.

As for the type of registration to choose – registration or matriculation – it will depend on the length of the vessel. Vessels up to 12 meters long can be registered or matriculated, whereas those exceeding this length must be matriculated. The buyer’s decision to choose one or the other will depend on the vessel’s design category and the distance the owner wishes to sail, as registration is limited to 12 miles off the coastline. The document issued for a registered vessel by the Maritime Administration is the Registration Certificate.

If one chooses to matriculate the vessel, the following fees must be paid: Ship Register (€ 19.08), Vessel Inspection for the issuance of the certificate of seaworthiness (€ 76.13), assignment of the MMSI number (€ 53.30) and the Ship Station License or LEB (€ 53.30)^[2], the latter two only if the vessel is to be equipped with the radio communication equipment. If one chooses registration, no fees are paid, except those for the MMSI and the LEB. The documentation for a registered vessel comprises the Certificate of Registration-Navigation Permit, the Maritime Registry-Entry Sheet, and the Certificate of Seaworthiness.

Insurance: The only compulsory insurance for recreational boats is civil liability insurance. However, since it is a new boat, it is advisable to take out a voluntary insurance covering the hull or a comprehensive insurance, without prejudice to seeking advice from the insurance company or an insurance agent.

Qualification: the one corresponding to the characteristics of the vessel, taking into account that, as it flies the Spanish flag, the skipper’s qualification must be the Spanish sports qualification or the authorization issued by the Maritime Captaincy based on the foreign qualification in cases where the owner is a foreigner and registers the vessel in Spain.

Crew: If the owner wishes to hire a crew, given that a vessel is registered on the 7th list, a skipper must have their professional title or certificate, be hired by the owner, registered with the Special Maritime Regime (Social Institute of the Navy) and will have to enrol in the Dispatch and Crew Roll.

New boat with both seller and buyer being business operators

We now analyse the case of a business operator or entrepreneur who acquires a boat from a nautical company or shipyard to use it for profitable activities which in the case of recreational vessels would be rent, recreational fishing or nautical school.

Legal regulation: The rules that will regulate the purchase are stipulated in the Law 14/2014, dated July 24, on Maritime Navigation and, as subsidiary, the provisions of the Civil Code. In these cases, the consumer and user regulations do not apply because the buyer is a business operator.

The purchase and sale must be confirmed in writing, the purchase invoice being a sufficient document, and the vessel must be inscribed in the Ship Register.

Taxes and fees: As in the previous case, both VAT and IEDMT are levied on the purchase of the boat, with some variations explained below.

VAT: If the purchase is exercised in Spain, VAT will be applied and the buyer may deduct it. If the purchase is made in an EU country other than Spain, it will be considered an intra-EU acquisition, so the invoice can be issued without VAT, but the buyer must declare the VAT for that transaction in Spain using the informative declaration Form 349, a summary declaration of intra-EU transactions. If the purchase is made outside the EU, the boat must be imported, paying the importation VAT and any applicable customs duties.

IEDMT: Since it is a vessel that is going to be used for profit, if the length exceeds 8 meters, an exemption from this tax can be requested from the Revenue Service, although the law[3] that regulates it requires that during the four years following the registration, the persons linked to the property must not use the vessel, not even by renting it, i.e. the vessel must be dedicated exclusively and effectively to commercial activities. An exception is made in the case where the linked person is a professional skipper, since it is assumed that they work on board rather than make personal use of the vessel. To be able to combine commercial use with owner use, either the four years must elapse or the tax must be paid. However, when combining the use of the vessel, it must always be done under a nautical lease agreement in compliance with the remaining tax requirements.

The fees are the same as those for the 7th list.

Registration of the vessel: Since the vessel is intended for profit-making purposes, it must be registered on the 6th list.

And here again there is a choice between registration and matriculation. However, if the vessel should have a professional crew, it must be matriculated and the registration option is not available.

The fees payable for the registration of the vessel do not vary from those for the 7th list. The cost of the Dispatch and Crew Roll (€ 15.03) or the Navigation License (€ 2.10), in which the crew members are enrolled, will have to be taken into account.

Documentation: The same basic documents that the nautical company delivers to individuals must be provided to entrepreneurs.

Insurance: As a new vessel that is going to be used for commercial activities, it is advisable to have it well insured, that is against all risks. Along with the compulsory civil liability insurance, it is also mandatory to take out accident insurance for people on board; this insurance is not the same as the compulsory passenger insurance (SOVI) but is one that must cover the same amounts as that provided for compensation in cases of death (€ 36,060.73) and disability (€ 42,070.85).

Qualification: If the vessel is intended for nautical rent under the bareboat charter, the client renting the vessel will have a Spanish or foreign qualification recognized by the DGMM appropriate for the characteristics of the vessel. If chartered with a crew, the crew members must have the relevant professional qualifications and/or certificates, be employed by the owner or operator of the vessel, registered with the Social Marine Institute, and be enrolled.

Second-hand boat with both seller and buyer being private parties

This is the case of the purchase of a boat between private individuals, where it is necessary to distinguish between the purchase of a Spanish boat and the purchase of a foreign one.

Legal regulation: The Law 14/2014, dated July 24, on Maritime Navigation and, as subsidiary, the provisions of the Civil Code. As in the previous case, consumer and user regulations do not apply because in this case the seller is not a business operator.

The sale must be formalized in writing and must be registered in the Ship Register.

Taxes and fees: There are also two taxes that apply to second-hand boats: one is the purchase tax and the other, as in the previous cases, is the registration tax.

Regarding the purchase tax, three different cases should be pointed out:

Purchase of a vessel flying the Spanish flag: When purchasing a second-hand boat registered in Spain, the VAT will have already been paid by the first owner, therefore the tax payable is the Property Transfer Tax (ITP) whose rate varies depending on the Autonomous Community where the buyer resides. The tax is applied to the purchase price stated in the contract, and in order to obtain the value of the acquired vessel one can refer to the table of average prices that the Revenue Service publishes every December.^[4]

Purchase of a vessel flying a foreign flag registered in a European Union country or with the VAT already paid: The ITP must also be paid because the VAT has been duly paid by the previous owner in their country or in the country of purchase. In any case, it is necessary to obtain from the seller a proof confirming the VAT has been effectively paid, either in the form of a copy of the invoice or a proof of a VAT payment. The average prices published by the Revenue Service can also be taken as a reference.

Purchase of a vessel flying a foreign flag registered in a country outside the European Union: This case involves the importation of a vessel into Spain, so the buyer, who is an importer, must pay the import VAT and, if applicable, the duty.

Regarding the registration tax applicable to the vessel, two different situations should be considered:

Purchase of a vessel flying the Spanish flag: When purchasing a second-hand boat already registered in Spain, the IEDMT will have already been paid by the previous owner, so it does not need to be paid again.

Purchase of a vessel flying a foreign flag: In these cases, payment must be made, since despite being a second-hand boat it is new for the purposes of flagging or registration in Spain, so it must be settled at the same rate of 12% on the purchase price, provided that the length exceeds 8 meters. In this case, you can also refer to the average prices published by the Revenue Service.

The T-0 rate will also be payable in the latter case of registration under the Spanish flag under the same conditions as those set out above.

Registration of a vessel: In the case of a vessel already registered in Spain, the corresponding change of ownership must be made in the Ship Register at a fee of € 19.03 for the annotation of the change of ownership in the Entry Sheet. However, if a vessel is purchased abroad, a registration procedure must be initiated in Spain on the 6th or 7th list, depending on the owner’s intended use of the vessel. In this case, the payable fees are all those described in the previous case. The registration option is not allowed for second-hand boats.

Documentation: When buying a Spanish boat, the basic documents are the duly signed sales contract, a copy of the identity documents of the seller and buyer, and a copy of the registration of the boat in question.

In cases of purchasing a foreign vessel, the documents required are the signed sales contract in Spanish and a copy of the identity documents of both parties. Additionally, the seller must provide the proof of withdrawal of the vessel from the original register, the Declaration of Conformity, the CE certificate, and the owner’s manual. If a purchased vessel has been imported, the import SAD processed with the Customs Office corresponding to the place where the vessel was brought into the territory of the European Union must also be provided.

Insurance and entitlements: See the first paragraph above.

Crew: If the owner wishes to hire a skipper, he or she must be a professional, hired by the owner, registered with the ISM (Spanish Institute of Statistics and Census), and enrolled in the Role or License.

Second-hand boat with business operator seller and private buyer

These are cases in which a vessel already registered in Spain is sold by the owner who is a business operator and purchased by a private individual.

Legal regulation: The Law 14/2014, dated July 24, on Maritime Navigation and, as subsidiary, the provisions of the Civil Code. Consumer and user regulations would apply if the selling company were engaged in the business of purchasing and selling boats.

The sale must be formalized in writing and registered in the Ship Register.

Taxes: Regarding the tax on the purchase of a vessel, it will be necessary to take into account whether it was previously registered on 6th or 7th list. In the first case, since the vessel is used for commercial purposes, the sale to individuals will be subject to the VAT. In the second case, if the seller never claimed a refund of the VAT on the purchase, they could sell without charging the VAT and the buyer would need to pay the ITP.

Regarding the IEDMT, if the sale of the vessel on the 6th list is made before the lapse of four years since the registration date, this tax must be paid, since the circumstances that gave rise to the exemption from the registration tax have changed. On the other hand, if the four years have already passed or the tax has already been paid by the seller, there is no need to pay it again.

Registration of the vessel: If there is a change of ownership, it will be necessary to record it in the Ship Register for a fee of € 19.03.

Documentation: Depending on whether or not the sale is inclusive of VAT, the invoice or contract of sale will be required, a copy of identity documents of the seller and buyer, and a copy of the registration of the vessel in question.

Insurance: Liability and hull insurance, plus passenger insurance if any commercial activity is to be carried out.

Entitlements and crew: See the paragraph above.

^[1] The regulation that governs the registration of vessels is the Royal Decree 1435/2010, dated November 5, which regulates the flagging and registration of recreational vessels in the sixth and seventh lists of the register of vessels.

[2] The indicated amounts are current ones and they will vary depending on the General State Budget.

[3] The regulation that governs the registration tax is Law 38/1992, dated December 28, on Special Taxes

[4] The latest is Ordinance HAC/1484/2024, dated December 26, which approves the average sales prices applicable in the management of the Tax on Property Transfers and Documented Legal Acts, Tax on Inheritances and Donations and Special Tax on Certain Means of Transportation, published in the BOE bulletin no. 313, dated December 28, 2024.