MARITIME AND SHIPPING IN MALTA

1. Why is the Malta Flag so successful?

Reasons of Malta’s Success:

• An active role in maritime fora such as the International Maritime Organisation (Malta is a Category C Council Member);
• Constant updating and aligning of Malta’s maritime legislative framework with international conventions, codes and market practices;
• Top ranking positions within the Paris and Tokyo MOU;
• Maximization of opportunities deriving from the EU Maritime Guidelines;
• English speaking flag administration with 24/7 customer oriented approach;
• Specific and targeted legislation meant to cater for the different categories in shipping with designated codes and guidelines which are updated on a regular basis. 
• The Malta Flag is a flag of Confidence providing its users with clear and certain rules which mirror most recent practices and market needs.

2. Is Malta the largest flag in Europe?

Yes, Malta is the largest flag in Europe with respect to registered tonnage and 6th worldwide with more than 10,000 ships registered in Malta by the end of the First Quarter of 2025 representing over 85M+ in gross tonnage, 5,942 yachts (under 24 metres) and over 900 yachts (above 24m) registered under the Merchant Shipping Act through the Merchant Shipping Directorate within Transport Malta. 

Meanwhile, as of the end of April 2025, there were 14,555 vessels actively registered in the Small Ships Registry, which is managed by the Ports and Yachting Directorate within Transport Malta.

3. What are the benefits of registering a ship in Malta?

Malta offers a number of advantages for ship registration, including:

• Competitive registration fees and possibility to benefit from an EU compliant Tonnage Tax Regime applicable also to non-Maltese and Non-EU/EEA registered vessels.
• Tonnage Tax rules applicable also to Ship & Yacht Management Companies.
• Ratification of a wide number of OECD compliant double taxation agreements.
• No navigation restrictions imposed on Malta flagged vessels.
• No restriction in terms of nationality of shareholders, director and employees of owning companies. 
• Smooth crew-acknowledgement certification process with STCW endorsements processed in a timely manner.
• An experienced and proactive flag administration supported by dynamic, reputable and experienced legal and accounting professionals specialised in the registration, management, and administration of yachts and super yachts.
• Malta is a White List Paris MOU Member State thus increasing the marketability of its vessels; 
• No navigation restrictions imposed on Malta flagged vessels.
• No restrictions on the nationality of crew members on board Malta flagged vessels.
• No navigation restrictions imposed on Malta flagged vessels.
• Competitive social security rates compared to other EU jurisdictions: allowing ship-owners to comply in a more cost-effective manner with the payment of social security for EU resident and citizens serving on board EU registered vessels in accordance with EU Regulation 883 of 2004 
• A jurisdiction supported by dynamic, reputable and experienced legal professionals supporting the registration, management, and administration of yachts and super yachts.

4. What types of ships can be registered in Malta?

The Malta flag allows the registration of various types of vessels, self propelled or not, including barges, pontoons, floating establishments, installations or structures, oil rigs and other similar vessels:

• Commercial ships (cargo vessels, tankers, bulk carriers, etc.)
• Passenger ships
• Private yachts and pleasure crafts
• Fishing vessels
• Service vessels (such as offshore support vessels, cable laying ships, pipe laying ships, crane vessels, research vessels, multi-purpose, break-bulk and other types of support vessels).

5. What are the requirements to register a ship in Malta?

To register a vessel in Malta, the following requirements must be met:

• Ownership: The yacht must be owned by an EU, Swiss, UK or EEA national or any foreign entity having separate legal personality such as a company or foundation. Non-resident owners must appoint a Resident Agent in Malta (See below).
   
• Documentation: Key documents include the submission of an application for registration and any other document duly certified and authenticated meant to prove ownership of the yacht and her details (e.g., bill of sale, builder's certificate, tonnage measurement) and the ship’s safety and seaworthiness.

6. Are there any restrictions on the size or age of ships that can be registered in Malta?

Ships above the age of 20 are not allowed to be registered under the Malta flag save for very rare exceptions (i.e. if they will be involved in the navigation within Maltese territorial waters or part of a group of vessels already registered under the Malta flag).

While vessels aged between 15 and 20 years old need to undergo a pre-registration inspection, vessels aged between 10 and 15 need to undergo an inspection within one month from their registration. These rules apply to new registrations only. 

7. How long does it take to register a ship in Malta?

The process of registering a ship in Malta typically takes between 5-7 working days, depending on the timely submission of all required documents and the correctness of the information therein provided.

The Registration Process is divided in two stages.

Stage 1: Provisional Registration

A yacht is initially registered on a provisional basis under the Maltese flag for a six-month period (renewable for additional periods, if needed), allowing it to operate legally while the requirements for permanent registration are completed. 

Key Requirements for Provisional Registration typically include:

• Application for Registration: Submitted by the owner or an authorized representative.
• Proof of Qualification to Own: This includes the submission of a Builder’s Certificate, Bill of Sale duly authenticated together with identification documents of the individual owner or the constitutive documents in case of an entity      with legal personality.
• Appointment of Resident Agent (if applicable): Required for non-Maltese/EU resident owners.
• Declaration of Ownership: Made before the Registrar.
• Evidence of Seaworthiness and compliance with International Conventions and codes: Issued by Government appointed Surveyors or Classification Societies. A List of Government Appointed Surveyors may be accessed from here.
• Application for Ship Radio Station Licence.
• Payment of Initial Registration Fees and Annual Tonnage Tax.
• If previously registered: A Deletion Certificate from the previous registry might be needed later in the process, but evidence of  cancellation of previous registry is generally required for permanent registration.

Upon submission and verification of such documents, together with payment of fees, a Provisional Certificate of Malta Registry is issued.

Stage 2: Permanent Registration

To obtain permanent registration, the following documentation (among others, where applicable) must generally be submitted within the six-month provisional registration period, or any approved extension thereof:

• Original Bill of Sale or Builder’s Certificate: As appropriate, showing transfer of ownership to the current applicant.
• Certificate  of Survey: Issued by an approved surveyor or recognized organization, attesting to the yacht’s seaworthiness and compliance with  relevant standards.
• International Tonnage Certificate (ITC): Required for yachts over 24 metres in length.
• Marking Note: Evidence that the yacht has been marked in accordance with  Maltese law (name, port of registry: “Valletta”).
• Deletion Certificate: From the previous registry, confirming the yacht is no longer registered elsewhere (if applicable).

Upon successful submission and verification of all required documents, the Permanent Certificate of Malta Registry is issued.

8. Do I need a local Maltese representative for ship registration?

Non-Maltese residents need to appoint a local Resident Agent.

The Resident Agent in Malta plays a key role in the ship registration process and while the vessel is registered under the Malta flag, ensuring a proper channel of communication between Transport Malta and the ship owner.

Resident Agents:

(a) act as the channel of communication between the international owner and Maltese government departments and authorities; 

(b) sign and file with Maltese government departments and authorities, on behalf of the international owner, all declarations and forms required in terms of Maltese law;

(c) act as the judicial representative of the international owner for judicial proceedings in Malta, and for the purposes of the Act, any official notice sent to the resident agent at his last registered address shall be deemed to have been duly received by and notified to the international owner.

In particular the Resident Agent is responsible:

To act on behalf of the owner: The Resident Agent represents the shipowner in all matters relating to the registration of the vessel under the Maltese flag. This includes liaising with the Transport Malta and handling all the formalities associated with ship and yacht registration.

For the submission of vessel documents: The Resident Agent assists in submitting the necessary documents with Transport Malta. This includes ownership records, safety certificates, tonnage measurement and any other documents needed for the registration process.

For ongoing support: Resident Agent helps maintain the ship’s registration by ensuring that required documentation such as safety certificates and inspection reports are kept up to date.

Tonnage tax and other fees: Resident Agent handles the administrative tasks related to the annual tonnage tax, registration renewals and any other fees or charges associated with the ship’s registration in Malta.

Registration of mortgages: If the ship is being financed or is subject to a mortgage, the resident agent may assist in registering the mortgage with the Malta Ship Registry. They act as an intermediary to ensure that the financier’s interest is properly secured in Malta.

Communication: The Resident Agent communicates with Transport Malta, customs, port authorities, and other relevant bodies on behalf of the shipowner. They ensure that all regulatory requirements and compliance obligations are met.

9. Is Malta the largest flag in Europe?

Yes, Malta is the largest flag in Europe with respect to registered tonnage and 6th worldwide with more than 10,000 ships registered in Malta by the end of the First Quarter of 2025 representing over 85M+ in gross tonnage, 5,942 yachts (under 24 metres) and over 900 yachts (above 24m) registered under the Merchant Shipping Act through the Merchant Shipping Directorate within Transport Malta. 

Meanwhile, as of the end of April 2025, there were 14,555 vessels actively registered in the Small Ships Registry, which is managed by the Ports and Yachting Directorate within Transport Malta. 

10. What are the costs to register a Maltese-registered ship?

Vessel registration costs for a Maltese-registered ship vary depending on the:

• type of vessel, 
• her age,
• length (yachts) and 
• net tonnage. 

The costs associated with registering a yacht in Malta are generally regarded as competitive when compared to other well-established jurisdictions. The principal cost components include:

• Initial Registration Fees: Payable upon provisional registration and typically calculated based on the yacht’s length or gross tonnage. For instance, yachts up to 24 metres are subject to a different fee structure than larger superyachts.
• Annual Renewal Fees / Tonnage Tax: An annual fee is required to maintain the yacht’s registration and is generally determined by the vessel’s gross tonnage.
• Survey and Inspection Fees: Charges for initial, intermediate, annual, and renewal surveys vary according to the yacht’s size, technical complexity, location, and the appointed surveyor or classification society.
• Resident Agent Fees (where applicable): Where a resident agent is appointed, professional fees will apply.
• Company Formation and Maintenance Costs (where applicable): If the yacht is owned through a Maltese company, costs will arise in connection with incorporation and ongoing corporate administration.

• Radio Licence Fees
• Professional Fees: Fees for legal, advisory, and consultancy services required to support the registration process and ensure regulatory compliance.

For accurate and up-to-date fee schedules, reference should be made directly to Transport Malta via its official website or reach out on info@piazzalegal.net

11. What happens once a ship is registered on a Permanent basis?

You need to ensure the ship is compliant with local regulations and fees are paid accordingly:

• Payment of Annual Fees: Ensuring the timely settlement of annual registration fees and any applicable tonnage tax.
• Seaworthiness: Maintaining the yacht in a seaworthy condition and in full compliance with all relevant safety and environmental regulations.
• Surveys and Certification: Complying with the required survey schedule, particularly for commercial yachts and ensuring that all statutory certificates remain valid.
• Reporting Obligations: Promptly notify Transport Malta of any changes relating to the yacht’s particulars, ownership or operational status.
• Compliance with Maltese Law: Observing all applicable Maltese maritime legislation and the international conventions to which Malta is a party.

12. What taxes are associated with Maltese ship registration?

Malta offers a competitive registration fee environment and an attractive tonnage tax regime for registered ships. In particular Malta adopted:

• Competitive Tonnage Tax Regime: Malta operates a tonnage tax system which is based on the net tonnage of the ship and her age (younger ships enjoy form lower fees). Tonnage tax rules have been approved by the European Commission in accordance with EU State Aid Rules and are subject to periodic review. These are applicable also to non-Maltese and Non-EU/EEA registered vessels and to Ship & Yacht Management Companies.
• Vessels fulfilling requirements under the Maltese Tonnage Tax Rules are exempt from tax on their income.
• No tax on profits or gains of a shipping organisation derived from the sale or other transfer of a tonnage tax ship acquired and sold whilst under the Tonnage Tax Regime or from the disposal of any rights to acquire a ship which, when delivered or completed, would qualify as a tonnage tax ship.
• A consistent number of double taxation and bilateral maritime agreements with other maritime nations.
• Absence of Exchange Control required for the purpose of incorporating or operating a shipping company (this also applies when taking security for loans or other facilities over Maltese registered vessels owned by companies registered locally).

13. What type of protection are creditors granted?

Malta has established a secure environment for ship financiers by offering robust protection of their interests with standards that are on par with those found in the English Merchant Shipping Act. 

There are significant advantages in registering a Mortgage in Malta:

• High ranking of mortgaged secured interests; 

• Mortgages constitute an executive title and are immediately enforceable upon default without prior court judgement or similar orders; 

• Further mortgages, transfers and deletion of vessels can be completed only with mortgagee’s prior written consent; if deleted by Maltese Authorities the mortgage would still continue to  attach to the vessel; 

• Mortgage attaches to insurance proceeds and to proceeds from indemnities for mishaps; 

• A registered mortgage takes priority over special  privileges or liens not previously recorded on  appurtenances or accessories of a vessel; 

• Possibility to register a mortgage in favour of  a security trustee acting under a trust for the  benefit of a person/s or a syndicate to whom a debt or other obligation is due.  

14. What is a Finance Charter?

A finance charter is to be considered as a charge over a ship with preference over all debts, claims or interests of any other unsecured creditor, save for any privileged claims which would rank in preference of a finance charter interest.

Purpose of such registration is to secure payment of hire, a principal sum and interest, an account current and any other obligation mentioned in the charter agreement. 

The interest secured by a finance charter will always rank after any registered mortgage. The rights of the mortgagee will not be prejudiced by the registration of such finance charter instrument.

This tool is also ideal in bankruptcy scenarios or involvement in court winding up procedures. In fact, these type of scenarios cannot in any way affect the registered interest holder, this notwithstanding the fact the ship was under the possession or not of the charterer.

“The flexibility given by regulatory rules governing ship registration in Malta, together with the possibility for ship owners and operators such as charterers and ship management companies, to apply tonnage tax rules, benefit deriving from competitive social security rates and personal income tax rates for certain categories of persons employed in shipping companies makes Malta as the ideal Maritime jurisdiction of choice.