Superyacht ownership restructured before an EU season

The brief

An owner had acquired a 42-metre yacht through a company that also held unrelated investments, on advice that relied on Malta's pre-2020 deemed-use percentage tables. Charter income had been received without proper documentation, and crew were being paid from a third entity.

• The correction had to be completed before the Mediterranean season began.
• A mortgage was registered against the vessel, so any change of owner needed lender consent.
• Historic charter income had to be regularised, not ignored.
• The owner wanted to keep chartering, which meant commercial registration obligations had to be met properly.

How it was built, in order

1. 01
   Position assessed honestly

   Quantified the historic exposure first, including charter income received without documentation, so the owner knew the number before deciding.

2. 02
   Unrelated assets removed

   Investments held in the same company moved out, leaving a single-purpose owning entity.

3. 03
   Lender consent obtained

   Mortgagee consulted and consent obtained before any change, so the financing was never in default.

4. 04
   Use arrangement rebuilt

   Charter documentation, hire rates and owner-use terms put on an arm's-length footing with written agreements.

5. 05
   Tracking implemented

   Continuous use-and-enjoyment recording installed and a retention policy agreed, replacing reliance on withdrawn tables.

6. 06
   Crew regularised

   Crew employment, payroll and social security consolidated into the owning company with correct certification.