Starting in July 2024, individuals will be able to rent their boat to tourists
Welcome to the million-dollar question, recently a legal modification has been formalized in the BOE and in relation to Nautical Charter matters that allows, in principle, owners of private boats (not companies) to rent their boat to a third party. At Nautic Charter Menorca we are aware that this is an issue that worries us, therefore, in this post we will try to answer some questions and clarify this issue that is creating a stir in forums, chats and networks in the nautical sector. We will clarify for you as an individual what you can do with your boat and we will also comment on how this measure implemented by the General Directorate of the Merchant Navy affects your business through Royal Decree 186/2023 of March 21 if you are already a company in the Nautical sector.
First of all, let’s situate the current legal context, if you have a private boat for your own use and enjoyment, whether to go fishing, take walks or go with the family, the registration badge that must appear on the bow of your boat , usually (and erroneously) called registration, must begin with a 7th, which means that it is on the seventh list and therefore, the boat can only be used for private, non-commercial use. If, before the aforementioned Royal Decree, an individual wanted to rent his boat to a third party, that is, for charter, he had to re-register his boat on the sixth list and become a nautical entrepreneur. To do this, it is necessary to meet very strict requirements in terms of security, processing of documentation, certificates and taxation, being a businessman and of course not using the boat as a private vehicle but as a company.
Therefore, before the release of RD 186/2023, the answer to whether you could rent your private boat on the seventh list to a tourist was categorically no, unless you put in order everything that the DGMM requires for this purpose and briefly has been commented.
Can I now rent my private boat with the application of this RD?
The answer after the publication in the BOE of the famous RD is that yes, an individual will be able to charter his boat on the sixth list for three months and also enjoy it for private use on the seventh list the rest of the year, but with several buts and things to keep in mind. account, which, to this day, remain pending to be resolved, clarified and delimited by regulations.
Firstly, article 9 of the aforementioned RD 186/2023 in section a) mentions that express authorization for a navigation license or dispatch may be requested for recreational vessels that want to change their temporary use from private to commercial for a maximum of 3 months. This means that, after this request to the Captaincy and its approval, an individual will be able to change from list 7 to list 6 for three months temporarily and commercially exploit their boat, that is, rent it to a tourist.
In addition, this authorization can be requested for a period of 5 years and also includes ships flying the flags of the European community that meet the appropriate requirements.
What requirements must the boat and the owner meet to be able to rent it to a tourist in summer?
- Obtain authorization from the Captaincy for the temporary change from 7th to 6th (obvious).
- Have the correct and up-to-date EEC certificate of conformity for the boat and engines.
- Have the navigability certificate up to date and the correct inspections.
- Seat sheet and navigation book or role up to date.
- Comply with safety regulations for rental boats, which means having the up-to-date and approved safety material that the DGMM requires you to have.
- Have completed and approved the STCW Basic Marine Safety Training, validated it in the Maritime Captaincy and that it is in force.
- Have Civil Liability insurance for pleasure boats with the possibility of renting to third parties without/with a skipper, on the sixth list only for three months and another at a private level for the remaining nine.
- Have occupant accident insurance for all passengers occupying the boat.
- SOVI people transportation insurance for the number of occupants of the boat.
- Register in the Treasury census regime as an entrepreneur using form 036.
- Register as self-employed in Social Security for being the owner of an economic activity.
- Process the Charter responsible declaration at the Consell Insular de Menorca.
- Processing with the Maritime Captaincy any circumstance that has to do with the ship’s role.
- Have boat reviews and inspections (ITB) up to date and signed by a recognized technician. As you have to change from 7th to 6th list, this will be mandatory for all applicants.
- Pay the navigation aid fee to the Port Authority at each registration or annually depending on the length of the boat.
- Inform the company that manages the mooring that the boat will change from the seventh to the sixth list, go ahead, that 80% of the marinas are reluctant to accept boats on the 6th list and if you have the boat in a public mooring such as the of Port Authority you can forget about it, so they would have to look for a new mooring.
- Quarterly declaration of VAT, personal income tax, you will need a tax manager.
- Annual VAT and Personal Income Tax declarations (withholdings) will require a tax manager.
- Mandatory Income Declaration for being an entrepreneur even if you do not exceed the minimum requirements.
It should be said that all of the above requirements are what is requested of boats that are registered on the sixth list from the beginning in order to be rented and at this time it remains to be seen how the DGMM will manage this new figure of “now yes, now no”, but, by overwhelming logic, if the individual is going to become an entrepreneur, he or she must meet the same requirements as a current company, for at least 3 months. However, we must continue waiting to see how the Captaincies and especially the DGMM speak out, but the shots point to what has been said. Meanwhile, the Treasury must already be rubbing its hands.
