Cyprus Yacht Leasing Scheme

Cyprus has introduced a leasing scheme for yachts, whereby a pleasure yacht may be leased by a Cyprus company, as lessor, to a third party, as lessee, who may be any person or company regardless of country of residence or incorporation

The yacht leasing scheme is based on the existence of a written agreement between the own-er of the yacht, as lessor, and the lessee, whereby the lessee agrees, for a period of time not less than 91 days or not exceeding 48 months, to use the yacht in consideration of payment of monthly lease payments. At the end of the leasing period, the lessee may have an option to purchase the yacht at a discount of the original price. The final consideration must not be less than 2.5% of the initial value of the yacht. This payment is subject to the prevailing standard rate of VAT (19%).