Frequently Asked Questions

  • A commercial yacht chartering in Greece must be in possession of a charter licence in order to commence and end charters in Greece. Without a charter licence in place guests cannot embark or disembark in Greece and the passenger list upon clearance into Greece must be identical to the passenger list when the yacht exits Greece.

  • Where the yacht is non-EU flagged she must be over 35m, built of metal or GRP and able to carry over 12 passengers to be able to apply for a licence.

    A Greek branch office of the yacht owning company must be established.

    The Greek branch must obtain a VAT number and a Greek tax resident must be appointed as the legal representative of the branch.

    The yacht must be surveyed by a surveyor acknowledged by the Greek authorities in order to allow for the issuance of a Greek Foreign Commercial Yacht Inspection Certificate (PEXEPA).

    All documents must be filed with the Ministry of Shipping and the yacht registered on the electronic yacht database.

  • We conservatively estimate 6-8 weeks from the date all paperwork is provided by the Owner’s team. Often it takes far less time but as issues may arise in relation to paperwork submitted it is important to start earlier rather than later if the yacht has booked charters in Greece to avoid any penalties arising under the charter agreement.

  • VAT is only due on charters undertaken by commercial yachts in possession of a Greek VAT number which is issued as part of the procedure when applying for a Greek charter licence and due depending on whether time was spent outside of Greece during the charter.

  • The VAT rate due on charter is 13% until 30 June 2022. Such VAT rate was introduced by the Greek government as a Covid-19 alleviating measure. The VAT rate is further reduced by legislation to 5.2% – 6.5% depending on whether the yacht in question can perform international voyages. The VAT rate of 13% may be extended beyond 30 June 2022 but it is too early to tell and any extension granted will come closer to season start.

  • In accordance to Greek legislation where a yacht with a Greek charter licence cruises outside of Greece during the charter and clears into a foreign port VAT on the charter fee is not due. It is important to collate all available evidence including documentation issued by the foreign port upon clearance to be able to prove that the yacht spent time outside of Greece during the charter and cleared into another country or that the charter commenced in another country.

  • A beneficial owner of a commercially registered yacht with a Greek charter licence can use his/her yacht privately while cruising in Greece subject to being able to prove they are the UBO of the owning company of the yacht. VAT is charged to the UBO on the cost of usage of the yacht by the owning company’s Greek branch office or the actual Greek owning company depending on the ownership structure in place. All fuel and supplies must be duty and VAT paid. The Owner’s fiscal and legal team must also consider any impact on the yacht’s global tax and ownership structure arising from any private use of the yacht.

  • A beneficial owner of a commercially registered yacht without a Greek charter licence can use his/her yacht privately while cruising in Greece subject to being able to prove they are the UBO of the owning company of the yacht and having a document onboard issued by the owning company confirming the beneficial ownership and also private usage of the yacht by the UBO. The Owner’s fiscal and legal team must also consider any impact on the yacht’s global tax and ownership structure arising from any private use of the yacht.

  • EU flagged vessels are exempt from paying income tax on charter income.

    Yachts which are non-EU flagged are subject to income tax at 22% on income generated by the Greek branch and must also pay in advance an additional high percentage of the income tax sum already paid to secure following year’s income tax.

    Yachts with Greek charter licences are liable to pay an annual tonnage tax per year.

    The branch office is also subject to an annual corporate tax of Euro 1,000 per year.

  • VAT is charged on delivery and redelivery fees. Moreover duty-free fuel is only available from charter start onwards and not available for the delivery the yacht.

  • VAT exemptions apply to materials and/or spare parts of the yacht, when proven to be incorporated/integrated on the yacht or her key parts and equipment (such as the engines, navigation systems, the hull etc.). In order for the VAT to apply in such cases it is essential that the delivery of the relevant materials takes place in the presence of a customs official who will confirm the delivery of the item onboard.

    VAT exemptions can also apply to services that concern the repair/maintenance of the yacht or the improvement or installation of equipment and systems, marina fees etc. provided that the yacht complies with the Greek high seas rules and can evidence such compliance if need be.

    VAT at 24% applies to all other yacht owning company’s (or Greek branch) expenses.

  • All VAT paid on invoices addressed to the Greek branch office is calculated and credited reducing accordingly VAT due to the Greek state under charter invoices issued by the Greek branch at the end of each VAT quarter.

  • VAT is not applied to the APA.

  • Duty-free fuel is available for commercial yachts under charter.

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