Owning private vessels & aircrafts in Italy: key legal requirements – Part I

Contenido

Italy is celebrated world-over for its unique blend of stunning natural and urban beauty, woven in a rich and long tapestry of culture and history. Ranging from alpine lakes to postcard coastlines, Italy  offers an abundance of world-class boating opportunities to enjoy. The privilege, however, of owning and operating a private vessel in Italy is associated with relevant legal obligations that any owner or prospective owner should be aware of.

This article therefore aims to provide a clear and comprehensive overview of the key requirements for registration and licensing applicable to private vessels operating within Italian jurisdiction. In general, registration requirements in Italy mandate that all boats over a certain size must be properly registered to sail under Italian authority. Registration establishes the vessel’s nationality (“flag”), and through an integrated network of treaties and EU law, Italy recognizes valid registrations from other countries (especially those pertaining to EU member states) in its territory.

In Italy, the classification of recreational vessels is governed by Law No. 50 of 11 February 1971, “Norme sulla navigazione del diportista”, and Legislative Decree No. 171 of 18 July 2005, “Codice della nautica da diporto” (the “Nautical Code”), which establish that recreational vessels are classified according to their respective lengths. Its Article 3 establishes three distinct types of vessels with varying degrees of associated regulations. The three categories established by the Italian norm are:

  • Natante da diporto (recreational craft): sailing and motor vessels with a length of up to 10 metres, excluding jet skis. All rowing vessels regardless of length;
  • Imbarcazioni da diporto (recreational boats): all sailing and motor vessels with a length of more than 10 metres and up to 24 metres;
  • Navi da diporto (recreational ships or yachts): vessels with a length of more than 24 metres, which are also subdivided in the following categories based on their gross tonnage (“GT”):

1. larger recreational ships (> 500 GT)

2. smaller recreational ships (up to 500 GT)

3. larger historic recreational ships (over 50 years old and up to 100 GT).

The vessel’s registration with the Italian Boat Register, is mandatory for vessels with a hull length over 10 meters. Recreational craft, under 10 meters, are not subject to this obligation and do not require formal registration, instead being categorized as common movable property. It is important to note that owners of such vessels may opt to register them if they wish, however, if they do register, they will be subject to the legal framework that regulates larger vessels.

The standard registration application process is generally supported by the following documents:

  • Title to the vessel (invoice for new units or sale agreement for used units). For craft coming from abroad, a certificate of deletion/deregistration from the foreign register, typically not older than six months, identifying the owner.
  • Engine documentation (manufacturer’s declaration of power or for older engines, suitable certification and conformity statements).
  • Declaration of Construction or Import (DCI) from a recognised industry association authorised by the Ministry of Infrastructure and Transport.
  • Identification documents for the owner (and corporate particulars where the owner is a legal entity).

In its Article 15 the Nautical Code requires that boats be registered in a computerized system called the Archivio telematico centrale delle unità da diporto (“ATCN”)which replaced an earlier iteration maintained directly by maritime and provincial offices. The ATCN is managed through the Sportello Telematico del Diportista (“STED”). The STED can issue the navigation license and carry out updates to the vessel’s registration such as change of ownership, residence, appointment of shipowner, mortgage, leasing, etc. Upon approval of the registration, authorities issue an Italian registration certificate known as a navigation license.

Some additional obligations are introduced through the Nautical Code, such as those set out in Article 29, which provides that recreational craft with a hull length exceeding 24 meters must be equipped with a radiotelephone transceiver operating on medium frequencies. The same article further requires that all recreational craft with a hull length of 24 meters or less that sail more than six miles from the coast be equipped with at least a VHF radiotelephone transceiver, including portable devices, subject to specific exemptions and equivalencies provided by implementing regulations.

When considering the general applicability of EU law on the matter, the main framework to consider is the one implemented by Directive 2013/53/EU (the “Directive”) of the European parliament and of the council of 20 November 2013 on recreational craft and personal watercraft , which applies to all recreational craft and personal watercraft, explicitly excluding watercraft intended solely for racing, canoes and kayaks designed to be propelled solely by human power, watercraft specifically intended to be crewed and to carry passengers for commercial purposes etc. The above framework was then implemented by Italian Legislative Decree No. 5 of January 11, 2016.

In the definitions of the Directive, ‘watercraft’ is understood as any recreational craft or personal watercraft, while ‘recreational craft’ means any watercraft of any type, excluding personal watercraft, intended for sports and leisure purposes of hull length from 2,5 m to 24 m, regardless of the means of propulsion.

In its article 17(1)(a), the Directive establishes that watercraft are subject to mandatory the CE marking to guarantee conformity with EU safety, structural, environmental and manufacturing standards. For vessels larger than 24m, on the other hand, the CE-marking regime no longer applies, being subject to other legal frameworks.

It is of note that the 24-meter cut-off on vessel classifications is a widely adopted benchmark in the maritime industry, which more-or-less generally reflects the point at which a vessel’s capabilities, complexity, and even intended usage often transition from that of a more typical boatto something more capable and luxurious such as a ship or a yacht.

As such, due to their dimensions, vessels over 24m in length, due to their increased capabilities, are also subject to increased levels of regulations and a stricter legal regime. For example, under Italian law, such boats may require tonnage (stazza) certification, registration under special registers, and compliance with safety standards appropriate for larger yachts/ships.

For EU-origin recreational craft subject to Directive 2013/53/EU, while CE marking constitutes a presumption of conformity with essential requirements, registration authorities may still require access to the underlying technical documentation when deemed necessary. For EU craft lacking CE marking, suitability can be demonstrated through a certificate from a notified/authorised technical body as provided under the Italian implementing measures.

Italy recognizes EU-registered vessels and as such an EU-flagged private vessels can cruise Italian waters with reduced formalities when carrying only EU nationals and once it is “VAT paid”, meaning that it is not subject to any ulterior import taxes or custom restrictions within the EU. Foreign (non-EU) flagged vessels are also allowed but must undergo customs clearance on arrival. Non-EU boats are required to report to Italian customs and immigration at the port of entry and present registration and insurance documents.

In general, when discussing the transfer of ownership of registered vessels, it must take place by means of a formal deed written in Italian with authenticated signatures and must be registered with the Italian Revenue Agency together with the payment of related registration tax. After the fact, the related navigation licence must be updated with the details of the new owner.

Registered recreational vessels are further subject to periodic safety inspections, the frequency and scope of which depend on the vessel’s size, age, and authorised navigation category. Such inspections are carried out by accredited technical bodies (e.g. ENAVE) and are required for the issuance or renewal of the relevant safety certification. Italian-flagged vessels are subject to Italian safety regulations and accordingly, must have the safety equipment.

While European citizens generally have the right to register their vessels in any European Union country, flag registration is governed by each Member State’s laws and must be assessed on a case-by-case basis taking into consideration each country’s specific vessel framework legislation.  It should be said however that registration typically require a “genuine link” such as nationality, residence/domicile, or an EU entity established locally.

It should be noted that Italian tax resident owners of foreign-flagged vessels must still declare the property of vessels in their tax returns by completing section RW which is the specific section in Italian tax declarations dedicated to the tax monitoring of foreign assets and investments. Conversely, the eligibility to register under Italian rules, depends on residence/establishment or appointment of a domiciled shipowner/representative taking into consideration also the beneficial ownership of the asset.

It is also important to highlight that Italian legislation also provides for mandatory liability insurance for all motorized pleasure craft and personal watercraft in its waters, and as such, where such obligations proof of insurance must be carried on board when navigating through Italy. Human‑powered craft and pure sail craft without an auxiliary engine are not generally subject to the same compulsory motor liability regime.

Finally, one last point to consider is that which pertains to the Italian boat license (patente nautica) as Italy expressly mandates that the vessel’s skipper possess a boating license in some specific cases. According to article 39 of the Nautical Code, a license is mandatory for vessels under 24m when operating a motorboat when navigating further than 6 nautical miles from the coast or, in any case, when operating a Jetski (Moto d’acqua).

In this context, a boat licence is also required when navigating in inland waters and for navigation in maritime waters within six nautical miles of the coast, when the vessel is equipped with an engine with a displacement exceeding 750 cc if fitted with a two-stroke carburetted engine, or 900 cc if fitted with a two-stroke fuel-injected engine, or 1,000 cc if fitted with a four-stroke carburetted or fuel-injected outboard engine, or 1,300 cc if fitted with a four-stroke carburetted or fuel-injected inboard engine, or 2,000 cc if fitted with a non-turbocharged diesel engine, or 1,300 cc if fitted with a turbocharged diesel engine, in any case with a power exceeding 30 kW or 40.8 HP.

Anyone taking command of a recreational vessel longer than twenty-four meters must hold a yachtmaster license for pleasure craft (“patente per nave da diporto”).
The boating license is divided into the following categories:

a) Category A: authorization to command small recreational craft, recreational boats, and personal watercraft;

b) Category B: authorization to command recreational ships or yatchs;

c) Category C: authorization to serve as nautical director for small craft and recreational boats;

d) Category D: special authorization to command small craft, pleasure boats, personal watercraft and jet-skis.

Conversely, for boats and ships flying a foreign flag, the boating license requirement is regulated by the law of the flag state. If the skipper is resident in Italy and operate an Italian-registered boat, he is required to obtain an Italian boating license when the vessel’s characteristics require one. Foreign residents may convert certain foreign certificates or take the Italian exam, while non-resident foreigners can rely on their foreign license or an ICC when sailing or chartering. In all cases, at least one person on board must hold a recognized competency qualification in cases required by law.

In conclusion, it appears clear that owning and operating a private vessel in Italy offers exceptional opportunities for leisure and exploring Italy, however it also entails a complex set of legal obligations, both local and at EU-level, to any owner, prospective buyer, or just any individual who wishes to operate a boat in Italian waters. Such obligations span from vessel classification and registration to safety compliance, insurance, and skipper licensing. It should be remembered that non-compliance can lead to significant administrative and financial consequences and in this context the navigation of the the applicable legal framework may often requires professional legal guidance in order to ensure a compliant, secure, and seamless boating experience. Part II of this article will address the key legal requirements for the ownership and operation of private aircraft in Italy.

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