Editor’s note: The warm, crystal-clear waters of Greece have attracted visitors for hundreds of years. Yacht charter in Greece is on the rise, too, partially due to more favorable regulations. But, it’s also due to the rich culture and history, thousands of islands, and balance between peaceful and popular places. With some yachts booking up nine months to a year in advance, we asked SOS Yachting to address frequently asked questions. SOS Yachting regularly assists clients with VAT and other fees they don’t always realize are due. It’s a yachting-focused, fiscal-representation company, recently opening an office in Athens, too. Whether you’re a charter enthusiast or an owner positioning your yacht there, a little education goes a long way.
Q: What is the standard VAT rate for yacht charter in Greece? Also, do any situations involve a reduced rate?
A: While Greece’s standard VAT rate is 24 percent, yacht chartering has reduced VAT rates. Specifically, they range from 5.2 percent to 1.3 percent on the charter fee. Officials base it on the yacht’s Certificate of Compliance (CoC). For yachts certified for unlimited navigation, VAT reduces to 5.2 percent, while yachts with certain operational limitations have a 6.5-percent VAT rate.
Q: What are the available ways for owners to charter their yachts in Greece?
A: There are two main options for chartering in Greece:
- Option 1: obtain a 3-year Greek charter license by establishing a Greek branch office through the General Commercial Registry (GE.MI.) and submitting an application to the Ministry of Shipping.
- Option 2: apply for a Greek Tax Identification Number, which allows up to 28 days of chartering annually. This option is only available for yachts over 115 feet (35 meters) that feature steel, aluminum, or fiberglass construction.
Q: Which option is the easiest and quickest to set up for yacht charter in Greece?
A: The 28-day charter license is generally quicker and less costly. It usually takes seven to 10 working days to receive a VAT number after submitting a complete application.
Q: Are there additional fees, apart from VAT, when using the 28-day charter license?
A: Yes, the TEPADAH or TEPADAH Plus cruising tax applies. The amount depends on the yacht’s gross tonnage, length, and the number of charter days in Greek waters. This tax, along with VAT, is paid per charter directly to the Greek government. TEPADAH Plus applies if boarding and/or departure occurs outside Greece. Further in this case, no VAT applies.
Q: What documentation do I need to obtain the 28-day Greek charter license?
A: You need to provide a detailed list of documents. These include certificates for both the owning company and the yacht. We can provide specific guidance on the required documents if you contact us.
Q: Can I make last-minute changes to the charter agreement, like extending the charter duration?
A: Yes, last-minute adjustments are possible as long as both parties sign the necessary addenda to the charter contract and inform us. This way, we can take the necessary actions.
SOS Yachting sosyachting.com
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