The rules for buying a boat in Spain

You are planning to acquire a property in Spain equipped with a mooring , and wish to take the opportunity to become the owner of a pleasure boat.

After a dream for many boaters who enter the joys of boating and yachting, it is nonetheless a purchase subject to many tax and legal rules that we suggest you discover in this article.

The Spanish tax system

First of all, it's important to remember that Spain's tax system is one of the most complex in Europe and buying a boat is no exception.

When you live in Spain, the law requires you to register under the Spanish flag any boat used within the territory.

It should be remembered that the concept of tax residence is determined in relation to the income tax which defines as resident any person who spends more than 183 days during the same calendar year in the territory.

Different taxes may apply to the acquisition of a pleasure craft:

● For the purchase of a new boat, the seller must pass VAT on to the buyer.      

● For the purchase of a second-hand boat, if the seller is a legal person governed by private law, he must pass on the VAT which had previously been deducted during the purchase.      

● It may be necessary for the buyer to pay the estate transfer tax (ITP) applied for the change of ownership in the amount of approximately 4% of the value of the property if the sale is not not subject to VAT.      

● There is also a special tax, the special tax on certain means of transport (impuesto especial sobre determinados medios de transporte), the amount of which varies according to the net value of the vehicle and its CO2 emissions.      

The title deed

Except for the acquisition of a second-hand boat where the contract is not compulsory (but strongly recommended), the purchase must be formalized through a document which summarizes the information of the 2 parties and of the boat , the sale price, the method of payment, the list of equipment and the applicable law.

This offers a guarantee in the event of a dispute, proves ownership for the buyer and will be used in the event of resale, damage or subsequent change of flag.

El Registro de Buques

In Spain, any vessel over 2.5 m must be registered in the Register of Ships (Registro de Buques) at the Directorate General of the Merchant Marine (Dirección General de Marina Mercante).

This register can then be consulted before any purchase to obtain information on the owner or on possible conflicts.

In the event of a change of flag for a foreign flag, it is essential to request the abandonment of the Spanish flag from this same register. This process is also compulsory for the registration of the boat in another State.

Guarantees

Unless the sales contract stipulates another provision, otherwise the guarantees and obligations of the parties are governed by Spanish law.

If the new boats have a 2-year warranty, this period varies according to the parts for used boats.

For a sale between private individuals, this warranty is 6 months and must include hidden defects.

When the seller is a legal person under private law, Spanish law imposes a 2-year warranty for second-hand goods (such as new goods) but allows a reduction to one year with the agreement of all parties.

You wish to be accompanied in your steps, do not forget that our real estate experts are at your disposal to guide you in your steps.