Registration of Ships in Madeira

The International Ship Register of Madeira – MAR, created within the scope of the International Business Centre, offers Madeira an important role in the maritime sector.

Because operating costs are a critical factor in the profitability of the maritime industry, MAR is a credible competitive alternative compared to other international registrations, in full compliance with the technical rigor of the safety requirements of EU registration.

The following Commercial Vessels can be registered with MAR:

• Cargo ships (freighters transporting bulk cargo and container ships);
• Passenger ships (cruise ships and Roll-on/Roll-off “Ro-Ro” ships);
• Barges;
• Tugboats and other auxiliary vessels;
• Platforms (fixed and floater).

Fishing vessels are not accepted.

The following yachts can be registered with MAR:

• Pleasure yachts (maximum capacity: 12 people)
• Commercial yachts, used for commercial purposes (maximum number of passengers: 12)

Any entity (companies, branch offices, agencies, legal representations, or other legal forms), with or without a head office in Madeira, involved in maritime transport, with its own ships, or within a charter framework, can register ships with MAR. Non-resident entities in Madeira must appoint a local legal representative.

Advantages of Registering Ships in Madeira

There are many advantages of registering a vessel in the International Shipping Register of Madeira - MAR:

1. A register of high quality, credible, and secure;
    
2. European community register. Vessels fly the Portuguese flag and can access European Union cabotage;
    
3. All international agreements to which Portugal is a signatory are applicable;
    
4. The income of the ship´s crew is completely exempt from the payment of any tax;
    
5. Flexibility relative to crew composition: only 30% of the safety manning must be European nationals and/or nationals of an official Portuguese-speaking country (Portugal, Brazil, Angola, Mozambique, Cape Verde, São Tomé and Príncipe, Guinea-Bissau, and East Timor); vessels owned by Spanish nationals are also authorized to have crew from official Spanish-speaking countries;
    
6. Crew members and their respective employers are exempt from Social Security contributions in Portugal, provided they are covered by another social security system or voluntary insurance policy that covers illness, occupational illness, and parenthood. If the crew members are Portuguese or resident in Portugal, they shall be subject to obligatory registration under the Portuguese general social security system with a contribution rate of 2,7%, 0,7% being paid by the crew member and 2% by the employer. It should be stressed that, according to Portuguese law, crew members onboard ships at the service of entities resident in Portugal, are deemed to be resident in Portugal for tax purposes;
    
7. There are no nationality requirements for the owners of vessels registered in MAR;
    
8. Highly competitive registration and service fees; bulk discounts available;
    
9. Mortgages of vessels registered in MAR can be governed by the laws of a different country;
    
10. Access to Europe´s most competitive tax system, if the vessel´s owner is a company operating in the International Business Centre of Madeira;
     
11. Possibility to register the vessels temporarily.

How to Register Ships in Madeira

The International Shipping Register of Madeira – MAR is a high-quality, credible, and secure registry. Ships flying the Portuguese flag and European Union Registration have access to EU short-sea shipping routes. In addition, all international treaties, conventions, and agreements ratified by Portugal are applicable.

Because operating costs are a critical factor in the profitability of the maritime industry, MAR is a credible competitive alternative compared to other international registries, in full compliance with the technical rigor of the safety requirements of EU registration.

Types of Ships

The following commercial vessels can be registered in MAR:

• Cargo Ships (bulk cargo carriers, general cargo carriers and container ships);
• Passenger Ships (cruise ships and "ro-ro" ships);
• Barges;
• Tugboats and other assistance-providing vessels;
• Platforms/Rigs (Stationary and Floating).

Note: Fishing boats are not permitted.

Entities

• Any entity (companies, branch offices, legal or other judicial form of representation) operating in the field of maritime transport, with its own vessels or charter vessels, can register vessels in MAR;
   
• Registration can be requested by entities with or without a registered office in Madeira, licensed or not to operate in the International Business Centre of Madeira.

A client selecting an entity operating in IBC will have full access to its favorable tax system.

Entities non-resident in Madeira must appoint a local legal representative.

Types of Registration

• Permanent Registration.
• Temporary /Dual Registration under a bareboat charter. 

The vessel´s new documents will be drawn up and issued by the authorities of Madeira and handed over to the ship´s captain when the flag is changed.

Please note that the requested inspections must be performed by one of the MAR-approved Classification Societies.

The vessel's new documents will be drawn up and issued by the authorities of Madeira and handed over to the ship´s captain when the flag is changed.

Please note that the requested inspections must be performed by one of the MAR-approved Classification Societies.

How to Register a Yacht in Madeira 

The International Shipping Register of Madeira – MAR also allows the registration of yachts, both for leisure and commercial purposes, taking advantage of all the benefits of the International Shipping Register.

The International Shipping Register of Madeira – MAR is a high quality, credible and secure EU shipping registry. All international treaties, conventions and agreements ratified by Portugal are applicable and observed by MAR, which has guaranteed the necessary measures for the adequate surveillance of all registered yachts.

The ratification of Decree-Law no. 192/2003, of 23 August, provided the possibility of registering pleasure yachts used for commercial purposes in MAR, excepting such vessels used for non-recreational fishing, freight transport and the transport of more than 12 passengers.

Types of Yachts 

The following yachts can be registered in MAR:

• Pleasure yachts;
• Commercial yachts (used for commercial purposes).

Current terms and conditions:

• Minimum length - 7 meters;
• For pleasure yachts - maximum capacity: 12 people;
• For commercial yachts - maximum number of passengers: 12.

Registration of Commercial Yachts

The registration procedure does not differ greatly from that already existing for pleasure yachts not used for commercial purposes. However, in addition to the information and documentation required in these cases, the application for registration procedure has to include all of the yacht´s safety data, as required by applicable Portuguese law and international regulations.

In addition, in regard to compulsory technical inspections, while pleasure yachts used for non-commercial purposes have to undergo their first inspection five years after registration and then again, every three years subsequently, commercial yachts are obliged to undergo annual inspections, and dry dock inspections of the hull have to be performed every two years.

What is the Cost of Registering a Ship in Madeira or a Yacht?

Cost of Registering Ships in Mar

Initial Registration

Annual Costs

Note 1: The fees indicated in clauses 1 and 2 above are applicable to cargo ships. In the event of registering a passenger ship or tugboat, the applicable initial and annual fees are those defined above with an additional 15% and 30%, respectively.

Note 2: TL = TL = Net Registered Tonnage
 

MAR also charges for the transport and fees of its representatives that will carry out the inspection of the vessel on the change of flag, which can only be calculated once the port in which the change of flag will occur is known.

All the above-mentioned sums must be paid prior to registration. All values are in agreement with current prices.

Discounts

For the registration of a new commercial vessel, the fees due may benefit from the reductions described below, provided that, on the date of the new registration, the applicant is also the holder of other valid and current commercial vessel registrations in MAR.

• 10% on the initial fee, when due by the holder of two previous registrations;
• 15% on the initial fee and the annual maintenance fee, for the first year and subsequent years, when due from the holder of four previous registrations;
• 20% on the amount of the initial fee and annual maintenance fee, for the first year and subsequent years, when due from the holder of nine previous registrations;
• 50% on the amount of the initial fee and 20% on the amount of the annual maintenance fee, for the first year and following years, when due from the holder of fourteen previous registrations.

Books and Other Forms Supplied by Mar and Respective Prices

 
Add EUR 15.00 to all values for official administrative acts. The cost of issuing certificates and declarations is EUR 25.00 each one.

Recreational Yachts

Cost of documents issued by MAR:

Pleasure Yachts

Initial Registration Fee:

Annual fee:

• Yachts between 7 and 24 meters long: EUR 500,00;
• Yachts over 24 meters in length: EUR 500.00 + EUR 2.00 per gross tonnage.

Note that the yacht belonging to a company licensed to operate under the legal jurisdiction of IBC, is exempt from paying the initial registration fee and will have the right to a 20% discount on the annual fee, in accordance with legislation and other regulations in force.

Commercial Yachts

Initial Registration Fee:

• Fixed fee: EUR 1.250,00;
• Variable fee: 
  • GRT up to 250: EUR 200.00;
  • GRT > 250: EUR 200.00 plus EUR 0.75 per additional gross tonnage.

Annual Fee:

• Fixed fee: EUR 1.000,00;
• Variable fee: 
  • GRT up to 250: EUR 200.00;
  • GRT > 250: EUR 200.00 plus EUR 0.75 per additional gross tonnage.

Additional Information

List of Classification Societies recognized by Portugal:

Classification Societies

• Lloyd´s Register of Shipping (LRS);
• Germanischer Lloyd (GL);
• Det Norsk Veritas (DNV);
• Bureau Veritas (BV);
• American Bureau of Shipping (ABS);
• Nippon Kaiji Kyokai (NKK);
• Registro Italiano Navale (RINA);
• Rinave Portuguesa (RINAVE)

Mortgages

The registration of mortgages in MAR allows the parties (borrower and lender) to choose the law that will govern the mortgage.

If the parties mutually select any other jurisdiction to govern the mortgage, they will have to sign a document stating this intent and indicating the chosen jurisdiction. A copy of the respective legislation, translated to Portuguese, must be attached to said document. If said document is not signed, Portuguese law will be applicable.

It should be noted that, under the law currently in force, the party that has acquired the mortgaged ship can only exercise the right to mortgage release if the exercise of that right guarantees the mortgage creditor full payment of all rights and charges ensuing from the mortgage contract (Decree-Law 234/2015, of the 13th of October).

To prepare the registration of the mortgage, the following documents should be sent to us:

1. If the mortgage is based on a loan contract already signed by the two parties and they wish to register the loan contract - a copy of this contract translated to English, French, Spanish or Portuguese;
    
2. If such a contract does not exist or the parties do not wish to register it, we must be provided with the following data: the loan value, expiry date, the payment method, interest, the definition of who pays the interest, and other clauses reinforcing the bank guarantee that are deemed essential to the mortgage.

The currency used will be that defined by the parties.

Crew

Safety Manning Proposal

The owner of a ship or its operator must include a proposal for minimum safety manning when submitting a vessel registration application to MAR. This proposal must be duly justified and furnished with the following data so that MAR may be able to correctly assess the submitted proposal and, consequently, define the crew composition:

• The ship´s intended navigation area;
• Gross tonnage, net tonnage, length, hull width and draft;
• Radio communication equipment and navigation aids on board;
• Hp power of the ship´s machinery and whether it is UMS machinery or not.

Nationality of Crew

30% of the safety manning have to be European nationals* and/or nationals of an official Portuguese-speaking country (Portugal, Brazil, Cape Verde, Guinea-Bissau, Angola, Mozambique, São Tomé and Príncipe, East Timor). Vessels owned by Spanish nationals are also authorized to have crew from official Spanish-speaking countries.

*Countries of the European Council, including Russia and Ukraine

Crew of Pleasure Yachts

Taking into consideration the characteristics of the yacht, in particular the installed power and its navigation area, MAR´s Technical Commission will define the most suitable safety manning, based on the applicant´s proposal.

All crew members must possess documents proving their professional qualifications or those required by law, in accordance with the yacht´s characteristics and respective area of navigation and, if the crew members are not Portuguese nationals, their professional portfolio and licenses must be endorsed by Portugal´s maritime and port authority - DGRM.

Pleasure yachts can only sail under the command of those holding documents proving possession of the minimum qualifications to sail or proving that they are a registered crew member. Notwithstanding these provisions, a pleasure yacht for commercial use, with a length no greater than 24m, can be registered with or without crew.

Social Security

Crew members and their respective employers are exempt from social security contributions in Portugal, provided they are covered by another social security system or voluntary insurance policy that covers illness, occupational illness and parenthood.

If the crew members are Portuguese or resident in Portugal, they shall be subject to obligatory registration under the Portuguese general social security system with a contribution rate of 2,7%, 0,7% being paid by the crew member and 2% by the employer. It should be stressed that, according to Portuguese law, crew members onboard ships at the service of entities resident in Portugal, are deemed to be resident in Portugal for tax purposes.

Natural Person´s Income Tax

The crew members of vessels registered in MAR are exempt from paying income tax in Portugal on the income received in this capacity, and while the vessel´s registration is valid.

Renewal of Registration

Temporary registration in MAR is valid for an initial period of two years. This can be subsequently renewed, according to the terms of the bareboat charter, and on official application to that end by the vessel´s operator/charterer or its local legal representative, and as long as all parties involved expressly consent to said renewal, namely the vessel’s title deed, the owner of the vessel and its mortgage(s) creditor(s).

Of further note is the fact that if any changes occur regarding the details of the registered vessel, namely change of ownership, MAR must be immediately notified of such alterations. As a result of any alterations, MAR will review the vessel´s MAR registration requirements, in order to ensure full compliance and to renew the registration of the vessel in MAR under the new circumstances.

Cancellation of Registration

The following steps must be executed to cancel the permanent registration of a vessel in MAR:

Ship´s Logbook

Ship´s logbooks may be requested of MAR´s Technical Commission whenever necessary, using the respective form. The legal representative will agree with MAR the delivery arrangements of the same in the register´s offices and will send them to their destination by mail, according to the instructions received by the vessel´s owner or its operator. 

Radio Station Licence

The ship´s radio station license is issued by the Portuguese maritime authority - DGRM. The vessel registration applicant - the respective owner or operator - must complete a form that will be submitted to DGRM through MAR´s Technical Commission. DGRM will then immediately issue a provisional license, valid for 6 months, on confirmation that the required radio equipment is functioning correctly and in compliance with Portuguese legislation and regulations.

The parties will set a date, in the meantime, for an inspection of the radio equipment on board the vessel. This will be implemented directly by DGRM inspectors or by a recognized like organization of the country in which the inspection will be carried out.

Radio Station Licensing Entities