Since 29 October 2026, Malta has been on the list of countries whose private yachts can obtain a cruising licence in the United States. US Customs and Border Protection (CBP) published the change in the Federal Register, applicable retroactively from 10 June 2026. For large motor yachts that call at US coasts on a world cruise, the Malta flag has become considerably more attractive.
What has changed
The US grants cruising licences only to yachts from countries that offer US yachts the same privileges. Malta confirmed this in a diplomatic note dated 4 February 2026: private yachts owned by US residents may use Maltese ports without entry or clearance and without charges. The US Department of State confirmed this reciprocity on 10 June 2026. On 29 October, CBP Dec. 26-18 followed, adding Malta to the list in 19 CFR 4.94(b).
Until then, privately registered Maltese yachts were at a disadvantage in the US compared with flags such as the Cayman Islands or the British Virgin Islands, which were already on the list. In its factsheet of 29 October, Malta's Ministry for Sustainable Mobility calls it a "game-changer" for the flag.
The advantages for large motor yachts on world cruises
Owners cruising the world on a large motor yacht often spend a full season on the US East Coast, in Florida or on the West Coast. This is exactly where the licence applies:
- Port to port without clearance. With a licence, the yacht can cruise specified US waters from port to port without entering and clearing each time, without manifests and without permits to proceed. Without one, a foreign yacht is subject to the rules for foreign vessels on every passage between US ports.
- No tonnage-based charges. The licence exempts the yacht from entry and clearance fees, fees for manifests, duty on tonnage, tonnage tax and light money. Because these charges depend on size, large motor yachts with a high gross tonnage (GT) save the most.
- A year of planning certainty. The port director issues the licence for up to one year, enough for a full season between Florida and the East Coast.
- Less work for captain and crew. Instead of formalities in every port, only the arrival report to US customs remains. That saves time and keeps routes flexible, for example when weather forces a detour.
- An EU flag with a US advantage. Malta is a European Union flag. Owners who wanted an EU flag and still planned to cruise the US used to accept a disadvantage. That disadvantage is now gone.
What still applies
The licence is not a free pass. These points remain:
- Private yachts only. The rule applies only to yachts used exclusively for pleasure. Many large motor yachts are commercially registered so that they can be chartered. According to the wording of the rule, the licence does not cover them.
- Report arrival. The master must report the yacht's arrival at each US port to CBP.
- Apply on arrival. The owner or master applies to CBP at the first US port of entry. The licence expires when the yacht is sold and does not pass to the new owner.
- The Caribbean is not uniform. Puerto Rico is part of US customs territory, and CBP asks for the licence number there. The US Virgin Islands count as foreign for US customs, so normal entry still applies. All other islands have their own rules.
- Crew visas. The licence does not cover entry or visas for the owner, guests or crew.
Tax: the flag changes nothing
For owners resident in the EU, VAT remains a separate question. According to the European Commission's guidance, the flag does not decide a yacht's tax status; what matters is whether it has Union status, meaning EU VAT has been paid. Tax-free temporary admission to the EU is available only to owners who do not live in the EU. Anyone leaving the EU on a world cruise should clarify before departure how to prove the yacht's tax status on return. A tax adviser should review the individual case.
What it means
For owners of a large private motor yacht with US plans, the Malta flag is now a serious option. Fewer formalities, no tonnage-based charges and a year of freedom along US coasts make the flag more competitive against Cayman, the Marshall Islands or the BVI. Owners who want to charter gain nothing: for commercially registered yachts, nothing changes. Flag choice therefore still depends on how the yacht will be used.
On our own account: MUTINYQUE advises owners on purchase, flag choice and planning long-range voyages: Advisory.
Sources
- Pleasure Vessels of Malta Entitled to Cruising Licenses (CBP Dec. 26-18), U.S. Customs and Border Protection, Federal Register, 29 October 2026, https://www.federalregister.gov/documents/2026/10/29/2026-22089/pleasure-vessels-of-malta-entitled-to-cruising-licenses, accessed 31 October 2026
- Document 2026-22089 (full text, PDF), Federal Register Public Inspection, https://public-inspection.federalregister.gov/2026-22089.pdf, accessed 31 October 2026
- 19 CFR § 4.94 Yacht privileges and obligations, Legal Information Institute, Cornell Law School, https://www.law.cornell.edu/cfr/text/19/4.94, accessed 31 October 2026
- New Horizons for the Malta Flag: U.S. Cruising Licences for Maltese-Registered Pleasure Yachts (factsheet), Government of Malta, Ministry for Sustainable Mobility, 29 October 2026 (print)
- Maltese-Flagged Yachts Granted Special Cruising Privileges In US Waters, Lovin Malta, 30 October 2026, https://lovinmalta.com/news/local/maltese-flagged-yachts-granted-special-cruising-privileges-in-us-waters/, accessed 31 October 2026
- Pleasure Boat Reporting: Puerto Rico and U.S. Virgin Islands, U.S. Customs and Border Protection, https://cbp.gov/travel/pleasure-boats-private-flyers/pleasure-boat-locations/pr-us-vi, accessed 31 October 2026
- Understanding U.S. Entry and Exit Requirements for Yachts, International Yacht Brokers Association (IYBA), https://iyba.org/news-detail/understanding-us-entry-and-exit-requirements-for-yachts, accessed 31 October 2026
- EU issues new Guidance Note on the customs and tax treatment of pleasure craft, Sovereign Group, https://www.sovereigngroup.com/news/eu-issues-new-guidance-note-on-the-customs-and-tax-treatment-of-pleasure-craft/, accessed 31 October 2026
- Temporary Admission of Yachts, GVZH Advocates, https://gvzh.mt/services/practice-areas/yachting/temporary-admission-of-yachts, accessed 31 October 2026
