Mallorca Yacht Charter VAT Explained: How Much Tax Do You Pay?

If you are booking a Mallorca yacht charter, VAT is one of the most important additional costs to understand.

For yacht charters starting in Mallorca, the standard Spanish VAT rate is 21%. This is normally applied to the charter fee when the yacht is placed at the charterer’s disposal in Spain.

That means a yacht advertised at €100,000 per week could carry an additional €21,000 in VAT before APA, gratuity, and other expenses are considered.

The standard VAT rate for yacht charters beginning in Spain is:

21%

So, for example:

Base charter fee: €50,000
VAT at 21%: €10,500
Charter fee including VAT: €60,500

Or:

Base charter fee: €100,000
VAT at 21%: €21,000
Charter fee including VAT: €121,000

Spain currently applies this 21% VAT rate to yacht charters starting in Spanish territory.

For a conventional yacht charter starting in Mallorca, 21% is the standard rate you should use for budgeting.

Unlike some Mediterranean countries, Spain generally does not offer a proportional VAT reduction simply because part of the charter is spent cruising in international waters. Current yacht charter tax guidance describes Spain as applying the full 21% rate to charters beginning in Spain.

The exact tax treatment should still be confirmed in your charter agreement, particularly for unusual itineraries or charter structures.

Normally, not for a standard charter that starts in Mallorca.

For example, leaving Mallorca and cruising towards Ibiza, Menorca, or farther offshore does not automatically reduce the VAT charged on the original charter.

Spain differs in this respect from jurisdictions where the taxable amount may sometimes be adjusted according to time spent outside territorial or EU waters.

This makes Mallorca yacht charter VAT relatively straightforward to budget.

Mallorca, Ibiza, and Menorca are all part of Spain.

Therefore, a typical Mallorca to Ibiza yacht charter or Mallorca to Menorca yacht charter still falls within the Spanish VAT framework.

You should generally expect the standard 21% VAT rate to apply to a charter beginning in Mallorca.

Not always.

Many yacht listings display the base charter fee, with VAT and expenses shown separately.

A yacht listed at:

€80,000 per week

may therefore require:

€80,000 base charter fee
€16,800 VAT at 21%
APA
Crew gratuity

Always check whether the advertised price states VAT included or VAT excluded.

No.

VAT and APA are completely separate.

VAT is the applicable tax on the charter.

APA, or Advance Provisioning Allowance, is an expense account used to pay for the variable costs of your trip.

APA commonly covers:

Fuel

Food

Drinks

Marina fees

Tender fuel

Shore arrangements

Special provisioning

Other guest expenses

A Mallorca yacht charter may therefore require payment of base charter fee + VAT + APA before embarkation.

Imagine you charter a yacht for:

Base charter fee: €100,000

VAT would be:

21% VAT: €21,000

If the yacht also requires a 30% APA:

APA: €30,000

Your initial charter budget would therefore be approximately:

€151,000

This is before any discretionary crew gratuity.

Any unused APA would normally be returned after the final charter accounts have been settled.

APA should not simply be treated as another 21% addition to the advertised base charter fee.

APA is an advance payment for actual expenses incurred during the charter. Those underlying expenses may themselves include applicable taxes depending on what is purchased and where.

For budgeting purposes, it is best to treat charter VAT and APA as separate components.

Changing the embarkation point purely to reduce tax is not something you should assume will automatically produce a lower VAT bill.

VAT depends on factors including where the yacht is placed at the charterer’s disposal, the itinerary, the yacht’s commercial status, and the applicable tax rules.

If your charter starts outside Spain and later enters Spanish waters, the tax treatment can differ from a standard Mallorca departure.

Any alternative arrangement should therefore be confirmed by the charter broker or fiscal representative before signing the contract.

A simple rule is:

Take the advertised base charter fee and add 21%.

For example:

€30,000 charter: €6,300 VAT

€60,000 charter: €12,600 VAT

€100,000 charter: €21,000 VAT

€150,000 charter: €31,500 VAT

€250,000 charter: €52,500 VAT

You should then budget separately for APA and gratuity.

Because on larger yachts, the amount becomes substantial.

A €250,000 yacht would generate €52,500 in VAT alone at the standard 21% rate.

That is before APA, which could potentially add another €62,500 to €87,500 if the yacht requires 25% to 35%.

For this reason, comparing yachts only by their advertised weekly rate can be misleading.

The better figure to compare is the expected total charter budget.