CUSTOMS

Under EU customs and VAT legislation, private pleasure yachts operating within EU waters must generally hold VAT-paid status, unless covered by a suspensive customs procedure such as Temporary Admission under the Union Customs Code (UCC). As a general rule, the customs value for VAT purposes corresponds to the contractual or invoiced purchase price of the vessel.

However, certain exceptions apply. Spain offers a specific valuation mechanism for the importation of pre-owned yachts entering the EU for the first time. Under Spanish Customs Circular 1/2004, the customs value may be determined based on the yacht’s “book value”, reflecting depreciation according to age, model, and condition. In practice, this can significantly reduce the taxable base, in some cases by up to 90%.

This approach is particularly beneficial for non-EU owners, including UK nationals post-Brexit, as it allows VAT regularisation while securing unrestricted navigation within EU waters.

Our firm has extensive experience advising on and executing import procedures under this framework, working closely with Spanish customs authorities to ensure accurate valuation and compliance. We provide full support, from initial eligibility assessment to completion of the process and issuance of VAT-paid documentation.