With summer approaching and the yachting season in full swing, discussions on issues affecting the yachting world are once again highly topical, and among these, the taxation regime for crew members is always a hot topic
by Berardo Lanci*
We are now preparing for the upcoming season, enriched by an important clarification from the Revenue Agency, which, in its ruling no. 10 of 20 January 2026, returned to the issue of exempt income for crew members.
We have already commented on this tax regime and therefore consider it appropriate to return to the subject, emphasising the importance of the Revenue Agency’s clarification. On this point, it should be noted that crew members who are tax residents in Italy and employed on yachts flying a foreign flag are exempt from Italian income tax on their income. In particular, income derived from work performed for a period exceeding 183 days within twelve months is excluded from the tax base.
The remuneration received by crew members on board yachts flying a foreign flag is not considered taxable income in Italy if the conditions outlined in the article are satisfied. Consequently, there are no formal obligations for the taxpayers involved, although it is advisable to retain all documentation necessary to demonstrate that the requirements for applying the favourable regime are met.
Imperial ©Guillaume Plisson.
This provision, contained in Article 5 of Law No. 88/2001, responds to the need to guarantee crew members – who are excluded from the so-called conventional remuneration regime – more favourable taxation on income from work carried out abroad. In this regard, the Revenue Agency has already clarified that the favourable regime mentioned above applies regardless of where the work is performed. In other words, it is irrelevant whether the yacht sails mainly in international, EU, or Italian waters, or whether it is based in an Italian or foreign port.
In its Ruling no. 10/2026, the Italian Revenue Agency confirmed that the principle which considers holiday periods, public holidays, weekly rest days, and other non-working days when calculating the 183 days also applies to crew members.
Moreover, in its recent Ruling No. 10/2026, referring to a principle already clarified previously (see Ruling No. 134/2020), the Revenue Agency recalled that the provision applies provided that the time requirement of “a period exceeding 183 days within twelve months” is met and confirmed that, as the rule refers to twelve months and not to the calendar year or tax period, the condition must be considered met even when the 183 days are calculated across the year, as they do not necessarily have to be 183 days falling within the same calendar year. However, the part of the aforementioned Ruling No. 10/2026 in which reference is made to paragraph No. 1.5.7 of Circular No. 207/E of 2000 is of great importance. Among other things, it states that “For the effective calculation of the days spent by the worker abroad, in any case, the period of holidays, public holidays, weekly rest days and other non-working days are taken into account in the calculation of the 183 days, regardless of where they are spent”.
The preferential scheme applies regardless of where the work is conducted. It does not matter if the yacht primarily sails in international, EU, or Italian waters.
In the opinion of the author, the above reference should be considered as an endorsement by the Revenue Agency of the application of this principle to the provision in question, even though in the specific case analysed by the Revenue Agency, the taxpayer who made the request was considered excluded from the application of the favourable regime. This conclusion is particularly relevant given that there have been several tax disputes over time, in which case law has consistently held that the principle according to which holidays, public holidays, weekly rest days and other non-working days are taken into account in the calculation of the 183 days, regardless of where they are spent. It is therefore hoped that the ongoing tax disputes concerning the issue discussed here will be settled once the Revenue Agency recognises the correctness of the principle applied by crew members, which the relevant case law has already upheld.
(Taxation of crew members – Barchemagazine.com – Excerpted from Barche, May 2026)
