Malta is an attractive flag state for commercial vessels, offering Maltese-registered charter companies 0% income taxes. However, up until now, only vessels 15m or longer could register commercially. The new Small Commercial Yacht Code has changed that, now allowing for vessels down to 12 meters in length.

 

As a tax haven, Malta has long attracted commercial boat owners alike. As of the 1st of April 2024, the Small Commercial Yacht Code (sCYC) has been implemented to meet the demand for the registration of smaller commercial vessels.

 

Along with various stakeholders, the Merchant Shipping Directorate developed this code to improve this particular segment’s growth.

 

Below is a brief explanation of the new sCYC code and its provisions.

 

Which vessels do the Small Commercial Yacht Code (sCYC) cover?

The sCYC applies to small vessels 12 meters or longer being registered commercially in the flag state of Malta. It also applies to vessels up to 24 meters in length that were previously covered by the Commercial Yacht Code (CYC).

 

Commercial vessels above 24 meters in length still fall under the Commercial Yacht Code (CYC). Meanwhile, vessels below 12 meters in length cannot register commercially and still need to adhere to the IACS99 and/or CVC, as before.

 

Naturally, the sCYC doesn’t apply to vessels used for recreational or non-commercial purposes. Besides pleasure boats, this includes military, state-owned, Design Category D yachts, and Rigid Inflatable Boats (RIBs) (Design Category C or D).

 

The Small Comercial Yacht Code Provisions

The CYC previously contained a section for vessels below 24 meters, which the sCYC has now replaced.

 

Many of the CYC provisions remain true for the sCYC for this category of boats, including the following:

  • The vessel may only carry the maximum number of people as listed on its CE Builder’s Plate.
  • No commercial vessel may carry more than 12 passengers.
  • sCYC Certified Yachts operating in foreign waters must still comply with additional regulations stipulated by that flag state or country.

 

How do I apply for registration of a commercial vessel in Malta?

Prior to applying for Maltese registration, a vessel must have a CE Declaration of Conformity. In order to gain this certification, it must be “CE Certified by an EU Recognised Notified Body in conformance to the EU Recreational Craft Directive 2013/53/EU.” – and only under Modules B+C, B+D, B+E, B+F, G or H. Module A, A1, and other Modules won’t be accepted. In addition, the vessel must be Classed.

 

Vessels not complying with the above stipulations can be accepted for registration, but only on a case-by-case basis.

 

Boat owners (or their respective representatives) need to apply for registration with the Merchant Shipping Directorate. On submission and processing of the application, an approved surveyor is contracted to conduct a survey according to the provisions set out in the sCYC 2024.

 

If all is in order, the Maltese ship register will then issue the final Certificate of Registry. However, the above process only applies to new vessel registrations, not migrations.

 

How can I transfer my commercial registration to Malta?

Naturally, many existing commercial vessel owners are likely considering moving their registration to Malta now, post-sCYC. However, such vessel owners must know they’ll be subject to limitations.

 

Vessels registered commercially under Red Ensign Group (REG), or French or Italian CYC certification can acquire a provisional, 3-month Small Commercial Yacht Certificate.

 

In contrast, vessels registered elsewhere will only be accepted at the discretion of the Maltese Administration. However, it appears that, in most cases, such cases are currently given the provisional certificate as well.

 

Of course, the Administration is likely anticipating a high number of applications after the implementation of the sCYC. If this situation develops, vessels registered elsewhere commercially (or not possessing the correct CE certification) will likely be given lower priority. As such, they can expect longer waits.

 

Register a commercial vessel in Malta

Lorrendraaier specializes in the registration of yachts within the EU and beyond. We can assist with your commercial yacht registration in Malta. Our extensive network and expertise in the industry will help ensure your registration gets processed and completed as soon and smoothly as possible.

Please don’t hesitate to enquire regarding our services.