Lowtax Network

Back To Top

Your Lowtax Account

Boat from Gibraltar no vat payed

Asked in Marine for Gibraltar

I'm looking to buy a boat that was bought in Gibraltar and has no vat payed on it but has been in Spain for years. Will I need to pay vat on this boat?
Gibraltar Spain
Posted by Peter.brown on Aug 29, 2014 at 08:00


You must Login to comment



The law is:
* Spain is in the VAT area
* Gibraltar is not
* if the boat is in the VAT area for less than 18 months, then it is a Temporary Importation, and VAT is not payable.
* if the boat is staying in the VAT area then VAT is payable.

Now the enforcement of the law is:
* Spain is known NOT to enforce VAT rules
* as well as Gibraltar (because there is no VAT there).

A boat is often a depreciating asset...so paying VAT after 2 years on a small boat which value cannot be assessed with exactness could also be a strategy (for paying or not paying VAT).

If you plan to sail in Spain or Gibraltar only: you can be under the radar, just don't put your name as an EU citizen as the owner, but put a Gibraltar company or non-EU company.
If you plan to travel to France or Italy (where they enforce VAT): sail to Gibraltar, refuel or go to a marina, keep the receipts,and just make the proper documents for the Temporary Importation beforehand (in Spain).
Posted by prominee.com on Aug 29, 2014 at 22:32


You must Login to comment


Your Answer

You need to be logged in to answer questions. Login or Register

Edit Question

Cancel Save

Edit Answer

Cancel Save

Type the id of the answer to move the comments of:

WARNING - Make sure the ID is correct, or the answer/comment may become lost