TPA Regime Spain | VAT-Free yacht refit & repairs with Evolution Yacht Agents
As the summer season ends and many vessels prepare for refit work, Spain emerges as one of the preferred destinations for winter refit and repair. With its well-connected infrastructure and a wide range of shipyards along the coast, Spain offers an ideal environment for technical works, upgrades, or full-scale overhauls. Additionally, navigating the TPA regime in Spain can provide tax benefits for vessels undergoing such projects.
Reliable and efficient shipyards such as MB92 (Barcelona), STP & Astilleros de Mallorca (Mallorca), PTW Shipyard (Tarragona), Pendennis (Vilanova) and Navantia (Cartagena) provide excellent options for your winter refit in Spain.
However, navigating the legal and customs side of refit can be as challenging as the work itself. This is where the Inward Processing regime, known as TPA, becomes a key advantage.
What is the TPA Regime?
The Inward Processing Relief (TPA) is a customs procedure that allows non-EU flagged vessels to carry out repairs, maintenance, or refits in Spanish waters without paying VAT or customs duties on the works or spare parts. In addition, time spent under TPA does not count toward the standard 18-month temporary importation limit, providing crews with greater operational flexibility.
To be eligible for TPA, both the vessel and the owner must be non-EU, and the refit must take place in a designated customs port. Once these conditions are met, the TPA process can be initiated.
The Process of TPA from start to finish
The TPA process can be arranged in advance and activated upon the vessel’s arrival. Once in place, it covers every aspect of the refit operation — from berth occupancy and spare parts logistics to contractor coordination, and communication with customs during sea trials or port movements.
Key benefits of the TPA regime include:
- 21% VAT exemption on all eligible repair and refit services, including those from Spanish and international suppliers.
- Tax-free importation of parts and equipment related to the refit.
- Suspension of the 18-month temporary import clock, allowing extended time in EU waters.
- No need to exit the EU solely for customs compliance when TPA is properly managed.
To formally close a TPA, customs authorities require one of the following procedures:
- Sailing offshore beyond 12 nautical miles.
- Visiting another Spanish customs port while in transit.
- Exporting to a non-EU port such as Gibraltar.
Each closure method must be correctly documented and handled according to customs regulations to avoid penalties or rejection.
Evolution Yacht Agents as your trusted agent for TPA
While knowing the benefits of TPA are significant, the process itself can be complex. It requires strict compliance at every step — from documentation and port declarations to contractor invoicing and final closure. Any misstep can lead to delays or additional costs.
That’s why choosing the right agent can make all the difference. With over 25 years of experience in the superyacht industry and more than 600 TPA cases successfully handled, Evolution Yacht Agents is here to guide you through the entire TPA process. As an officially registered Customs Agent and Authorised Economic Operator (AEO), Evolution works directly with Spanish Customs to ensure transparency, legal compliance, and peace of mind.
Let our team of experts make your winter refit in Spain smooth, compliant, and stress-free.
Contact: tpa@evolutionagents.com – (+34) 971 400 201
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