Malta aims to repeat this year registry's success recorded in 2010

Chryssa Tsiotsi | 21 Jul 2011

Malta aims to repeat this year registrys success

While figures for 2010 confirm the resilience of the Maltese ship registry, its success is expected to have been sustained and strengthened during the first six months of this year as result of a number of amendments that Malta implemented recently. These amendments include a revised yacht code and changes in the structure of fees charged by the registry. Such revisions backed by the Maltese legal system, offer a great opportunity to vessel owners intending to register their vessel under the Malta flag. This is mainly due to the respect and esteem nurtured towards the Malta flag throughout recent years and also the possibility of benefitting from certain schemes and tax advantages.


Indeed, at the end of December 2010, the number of ships registered under the Maltese Merchant Shipping Act was over 5,500 for a total gross tonnage exceeding 39 million. This represents a 9% increase in gross tonnage over 2009, confirming Malta’s place as the second largest register in Europe and among the ten largest registers in the world in terms of gross tonnage.

 


Moving on to this year, the first six months of the current year saw the practical application of the new Malta Commercial Yacht Code promulgated in September 2010. The experience so far with the new code seems to have been a positive one. The amended Commercial Yacht Code has enabled Malta to keep up with the industry’s ever innovative marine technology and at the same time develop the regulatory system in line with the challenges and requirements of the maritime sector. The amended Code allows for a wide array of yachts to be registered, provided that they adhere to the conditions laid down for registration - ranging from historical yachts to yachts over 24 metres in length. Furthermore, as regards manning requirements, cases are dealt with individually and according to the circumstances involved. The Maltese maritime authority does not reserve any restraints based on the nationality of crew members and in fact acknowledges training and certificates from highly regarded countries in this sector.


Having said that, the amended yacht code is a contributing rather than a major factor why vessel owners choose Malta. Malta’s legal system, its stability and fiscal advantages play an important role. By way of summary the main advantages of the Maltese flag include: relatively quick provisional registration, comparatively low costs, the possibility of setting up shipping organizations, a reputable flag and an advantageous tax regime including the application of 0% income tax in certain circumstances


Furthermore, the recent changes in the fee structure are categorised according to the class of the vessel. Fees for ancillary services have also been revised making the registration and renewal process easier and include registration of a change in the registered owner of a registered ship and the registration of mortgages.


Analysts are expecting that these positive changes coupled with the other advantages that Malta offers will result in another successful year for the Maltese ship registry.


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