What taxes can I pay when buying a boat in Spain

Source / inspiration: Samy Video · Ship Broker

The advertised price is not always the final cost of the purchase. Before closing a deal, it is advisable to know who is selling the boat, where it is located, how it is registered and what taxes may be applicable.

1. When the transaction is subject to VAT

In Spain, the general VAT rate is 21%. This may be relevant, for example, when the sale and purchase carried out by a company or professional is subject to VAT. Not all sales of used boats have the same tax treatment. Before comparing two prices, check whether they include taxes and what the specific tax situation of each boat is.

2. If you buy a used boat from a private individual

Normally, the Property Transfer Tax (ITP) comes into play, the percentage of which depends on the competent autonomous community. In Catalonia, the transfer of a used boat is currently taxed at 5% and is declared using form 620. For example, a boat advertised by a private individual for €100,000 could involve an additional €5,000 of ITP if the transaction is taxed in Catalonia.

3. What about registration tax?

Spanish regulations generally establish that certain recreational boats over 8 meters in length are subject to special tax on first definitive registration in Spain. For the section corresponding to boats, the general rate in the Peninsula and the Balearic Islands is 12%. This does not mean that every time you buy a boat over eight meters you automatically have to pay 12% again. It is necessary to analyze whether the tax has already been settled, whether we are dealing with a first registration or use in Spain and whether any assumption of non-subjection, exemption or reduction is applicable.

4. What happens if the boat has a foreign flag?

A foreign flag alone does not eliminate Spanish tax obligations. The owner's residence, where the boat is used, its origin, private or commercial use and the registration situation can completely modify the analysis. This is why two boats advertised at exactly the same price can end up having a very different final cost.