Greek registry

[paddywackcocker]

I read in an old Ionian pilot book, that the Greek law about having to have your boat registered in Greece for charter runs out this year (2009) and then any boat registered in Europe can charter again.
Any body heard about this?

 

[Ken_Irby]

Greek Registration for Charter

There are already non-greek boats on charter in greece. several have british ssr numbers and red ensigns. they still need to comply with the greek requirements for charter boats as to liferafts, vhf radios, flares, fire extinguishers, insurance et al. the old requirement for greek ownership was eu illegal but that organisation chose to take no action until recently. it may be argued that british boats need to be commercial coded but this does not appear to be the case with any i've seen so far. at least one british owned charter company has had 100% british registered boats available for charter for the last two seasons to my knowledge. i don't know how the triple level harbour dues charging will apply since greek registered "commercial" vessels, ie charter boats up until now, have gotten away with paying very little for a night's stay in a harbour.
Chas on Kentrina's log-in

 

[andymcp]

This is from memory, so happy to revert to better informed users, but my understanding from when we looked at putting a yacht over there that the main reason for Greek registration was the 0% VAT rate incentive on charter yachts (not sure if this is still in force). The condition that seemed paramount was that the vessel be operated through a Greek charter company, or agent, to be able to be declared as a charter yacht. There were slightly differing interpretations of the rules depending on the company, but many thought that registering them over there had no real disadvantages.

I would have thought that the best advice would come from those that operate yacht ownership programmes on a smaller scale, who were extremely helpful to us when we enquired, like Sail Ionian and Nisos.

 

[Tranona]

The VAT free regime ended in 2002 in the sense that boats sold from charter companies to private owners became subject to VAT. Prior to that no VAT was charged and some form of certificate was issued stating the boat was exempt from VAT. In common with other EU companies VAT can be reclaimed when a boat is purchased. However, my understanding is that charter income is not subject to VAT - although I am not certain of this.

I purchased a boat under a charter management scheme in 2001 when VAT was not an issue, but was aware that the rules could change before I took the boat over at the end of the contract. I actually chartered for an extra year with the operator as my agent and there is no record of any VAT in the accounts they prepared for me for that year. I did however, pay VAT when ownership was fully transferred to us based on the original contract value which was approximately 50% of the original purchase cost plus some expenses. A bit complicated as I originally paid in DMs, conveted to Drachma and then paid in Euros!

As I understand it, many British owners still keep their charter boats on the Greek register using a Greek management company because it saves a lot of hassle. All charter boats have to meet the Greek registration requirements which are frustratingly different from MCA to get a licence as well as being able to show that they are actually operating commercially to get the benefits (for example lower berthing costs).

 

[Ken_Irby]

This is from memory, so happy to revert to better informed users, but my understanding from when we looked at putting a yacht over there that the main reason for Greek registration was the 0% VAT rate incentive on charter yachts (not sure if this is still in force). The condition that seemed paramount was that the vessel be operated through a Greek charter company, or agent, to be able to be declared as a charter yacht. There were slightly differing interpretations of the rules depending on the company, but many thought that registering them over there had no real disadvantages.

I would have thought that the best advice would come from those that operate yacht ownership programmes on a smaller scale, who were extremely helpful to us when we enquired, like Sail Ionian and Nisos.

Well you're wrong mate; your memory fails you. it was purely down to the greeks wanting control. there was no choice between going 18% vat (now 19.5%) or 0% as you imply. you could NOT choose; it was get a greek >50% partner in your own yacht or nothing doing. i've been in the business for many years over here and seen what goes on.

Chas on Kentrina's login

 

[jimbaerselman]

Yes, EU flagged boats can charter in Greece. But they have to meet all the Greek rules and regs for charter operations. The same applies to non UK flags chartering in UK . . . they have to meet UK charter regs, business taxation etc. It's just that each charter creates serious paperwork in Greece. Tedious.

The same VAT rules apply too. So when a registered charter business buys a boat, VAT paid is offset against VAT received for services. But when the boat is sold, VAT has to be charged on the sale price - whoever it's going to. If it's going to another firm, registered for VAT, to be used in its business, the buyer can claim a rebate. If it's going onto a private register - pay up. If it's going out of the EU (I don't know the grace period) VAT is not payable. Guess why there's a premium on marina berth charges in Croatia . . . all those non VAT paid SSR UK flagged boats skulking around moaning about marina price rises.

And, a mis-understanding about Greek port fees is obvious. All EU flagged boats (including Greek) pay the same fees. But there are two classes of boats. Those that have residence (annual marina or port contracts), and those who are in transit. Annual contracts include a daily berthing fee; those in transit pay on leaving port.

There's an assumption by the port police that all Greek flag boats have residence, and oher flags don't. So, when you visit the port police to depart, they'll charge everyone the port entry fee (a one off €4 or so depending on size), and they'll charge non-Greek flags another daily berthing fee - unless you prove the yacht is already paying (through an annual marina contract) in which case they should reduce the charge. Not always easy with a language barrier.

But, hey, I anchor off a lot, visit many places with no port police, and they only ask you to book in once a month on most village and town quays, so I only pay about €9 to €14 a month for berthing. So, who's quibbling?