Enhancing Security and Flexibility
The Madeira International Ship Registry (MAR) offers yacht owners and creditors a modern, secure, and flexible legal framework comparable to top jurisdictions like Malta and the UK. Recent updates in legislation have enhanced protections for mortgage creditors, allowing for the registration of mortgages governed by foreign laws, such as English or Maltese law, at the discretion of the parties involved.
Key Benefits of MAR
- Choice of Law: Parties can choose foreign laws to govern their mortgages, enabling streamlined enforcement of creditor rights.
- Simplified Processes: Mortgage registration requires minimal bureaucracy and supports creditor safeguards, including irrevocable powers of attorney and creditor consent for changes to the vessel’s name, flag, or ownership.
- Fiscal Advantages: Yachts registered in MAR enjoy VAT exemptions on commercial activities in international waters, reduced corporate tax rates, and favourable crew taxation rules.
- Global Standards: Vessels registered in Madeira can navigate EU waters without restrictions and benefit from inspections conducted locally by recognized entities.
Recent Developments
In response to industry feedback, MAR legislation was updated in 2020 to align creditor protections with leading maritime jurisdictions. For Merchant shipping and yachts, these enhancements provide creditors with rights to seize, operate, or sell vessels in cases of loan default, bypassing lengthy court procedures.
Why Choose Madeira?
MAR offers a competitive edge with lower operational costs, efficient registration, and robust legal protections for both owners and creditors. With its growing reputation, Madeira has become a favoured registry for vessels from Germany, France, Norway, and beyond.
Conclusion
The Madeira Ship Registry combines fiscal benefits, streamlined processes, and a flexible legal regime, making it an attractive option for yacht owners and financiers. Its modern approach ensures robust creditor security while offering owners unmatched operational advantages within the European Union.
Maritime Law Team
João Valadas Coriel | Sónia Antunes Dias
