New tax for foreign yachts based in Greece from 1st January 2014????

Tranona

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Stop wondering. Frankly, I would tend to keep my head down because proving with documentation that your yacht has been in Greece for one year may swap a 400 euro annual tax with a 23% import tax on the current value of your whole boat.

Please can you explain how that might happen?
 

Tony Cross

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Stop wondering. Frankly, I would tend to keep my head down because proving with documentation that your yacht has been in Greece for one year may swap a 400 euro annual tax with a 23% import tax on the current value of your whole boat.

Remember, few laws are repealed and can co-exist with contradictory laws. Thats how lawyers get rich.

The tax man reminds me of the tower in Mordor when the eye scans the surrounding land like a lighthouse. When the beam sees a victim it stops. A scream is heard which summons the black riders to your doom. Keep your head down.

This is only likely to happen to EU citizens cruising in an EU flagged boat that is not VAT paid. That makes you a tax avoider and you deserve to get caught IMO.

I'm also intrigued as to how they will apply the "if you spend a year in Greece" test because it's impossible to prove a negative, so unless you have a 12-month marina contract it will be impossible to prove that you never left Greece.
 

Tony Cross

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I've just been chatting to some people here about how we could prove a 12-month stay in Greece. They suggest asking for and keeping a receipt for every purchase made and for every cash withdrawal from ATMs. Whilst not definitive proof they would go a long way to showing that you'd spent the whole year in Greece.

It's also a good reason for asking for your receipt here too. :)
 

BurnitBlue

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Please can you explain how that might happen?

No idea. however, my marina has a notice on the board telling folk that the maximum time they will allow a car to be "stored" is six month before Customs are informed.

Yes I know a car is different BUT both are taxable assets.

Anyway my post was a tongue in cheek attempt to remind folk that tax laws are passed so that THEY can get at YOU. Not so that YOU can get at THEM. (Old military aphorism about rules and regs).
 

PLEIAS

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Under the law if you stay 12 months then you'll be obliged to file revenue forms but that goes only for individuals.The way i see it the only proof you can provide is to show a receipt for home-port fees.That is you pay for a year in advance to your local port-fund till the end of february each year.That gives you certain privileges and rate deductions such as not having to pay for every time you sail in the daily rates and establishes that you have a permanent port.BUT wait for the directions if and when they come - till then, the answer my friend is blowin in the wind...And as for the post about the marina and cars it goes to say how much freedom foreigners are enjoying in Greece.I sincerely doubt if something like that could happen in any other country - not to mention how legal are these cars regarding MOTs and insurance.Especially from the N.European country where humor is forbidden by law (GERMANIA)
 
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Tranona

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No idea. however, my marina has a notice on the board telling folk that the maximum time they will allow a car to be "stored" is six month before Customs are informed.

Yes I know a car is different BUT both are taxable assets.

Anyway my post was a tongue in cheek attempt to remind folk that tax laws are passed so that THEY can get at YOU. Not so that YOU can get at THEM. (Old military aphorism about rules and regs).
That is an EU wide rule that applies to cars where you are allowed 6 months usage in another state before you have comply with local circulation tax requirements. No such rules currently apply to boats, mainly because there are no circulation taxes. However the proposed new tax does have the characteristics of a circulation tax and will be payable by all.

Difficulty they will have as already mentioned is enforcing it on movable assets that in many cases have no formal legal existence. They will have more luck with Greek registered boats as registration is compulsory but difficult with non Greek boats. However, despite what the wingers on here seem to think it is not aimed directly at liveaboard, or at visitors, but to be legal within the EU it must apply to everyone.
 

jimbaerselman

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When we moved to Holland we had to re-register our car after six months. Later we brought it back to UK and again were given six months to re-register.
The EU regs did not require re-registration, but they did say that the visited country was entitled to levy any charges and impose any requirements that locals suffer (insurance, circulation fees etc). The reason for not requiring re-registration was to permit people who who intended to return to their original country to avoid the cost and bureaucracy of re-registering.

Incidentally, these EU framework rules, which may or may not be integrated correctly into local law by individual countries, cover all MoT (means of transport). Planes, boats, cars, caravans . . .

I think they also specify a continuous period of 180 days for MoT

For people, of course, it's different. Tax residence may kick in if you spend more than a cumulative period 182 days per 365 in another country, or if you conduct a business or earn there.

Lots of countries introduce these ideas with quirks to create local privileges - leading to local court cases being appealed to EU courts of justice.
 

Bertramdriver

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The law was passed yesterday as it was.Good luck to you all and fairwinds for those who will choose to leave.

Hi I see that the Greek circulation tax law has just been enacted. Is there any definitive statement from someone who is informed as to what this law entails or how it may be modified. I have a 12.95 metre motorboat based in Greece and as I'm on a (pathetic) pension this tax may be the one one that breaks our desire to remain there. My nightmare is to arrive in April and be presented with a massive bill.
 

jimbaerselman

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I have a 12.95 metre motorboat based in Greece and as I'm on a (pathetic) pension this tax may be the one one that breaks our desire to remain there. My nightmare is to arrive in April and be presented with a massive bill.
I'm working on this for the Cruising Association. I have a "just adequate" translation of the law as agreed. From this we've published what we can on http://www.cruising.org.uk/home - top news item. You should be able to work out the implications for your own case from this.

The biggest bill you would face would be €910 pa if you choose to remain in Greek waters. Depending on the interpretation of one phrase, this may be a little less. But there are many options for reducing the amount; pay only for one month, and leave Greek waters (€130), pay monthly, but only when your're in the water (depends on when their months start and end!)

When we have a better translation we'll enlarge on this. It won't actually be law until it is published in the gazette, but there is not likely to be much delay, nor change.
 
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grumpygit

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I have a 12.95 metre motorboat based in Greece and as I'm on a (pathetic) pension this tax may be the one one that breaks our desire to remain there. My nightmare is to arrive in April and be presented with a massive bill.

As like us, you will be going back in the water around the same time. By then we will all know if it's EU legal and how it will work for us all, not just the minus side but any plus benefits. If it is EU legal, how long before other EU member states adopt the same/similar regime, so is moving on the answer?
For us with the present information we will have to find circa €5 a day extra from our budget. Not impossible but it will have to come from what we would otherwise spend ashore with the Greeks, bum deal all round . . . .
 
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I'm working on this for the Cruising Association. I have a "just adequate" translation of the law as agreed. From this we've published what we can on http://www.cruising.org.uk/home - top news item. You should be able to work out the implications for your own case from this.

The biggest bill you would face would be €910 pa if you choose to remain in Greek waters. Depending on the interpretation of one phrase, this may be a little less. But there are many options for reducing the amount; pay only for one month, and leave Greek waters (€130), pay monthly, but only when your're in the water (depends on when their months start and end!)

When we have a better translation we'll enlarge on this. It won't actually be law until it is published in the gazette, but there is not likely to be much delay, nor change.

Personally, I can't see what is different about the current posting on the CA site (http://www.cruising.org.uk/node/22634) from what we already knew.

Interesting to see what will happen when the Italians arrive* in August. (*Or WILL they?)
 
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grumpygit

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Personally, I can't see what is different about the current posting on the CA site (http://www.cruising.org.uk/node/22634) from what we already knew.


Interesting to see what will happen when the Italians arrive* in August. (*Or WILL they?)

Strewth man, what's all this chelping about the Greeks. It's not the people but the politicians and tax makers who make the laws.
So to ask you the question. Why the hell did you ever come to Greece and why are you still here?
 

Chris_Robb

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From what I can see the Greeks have to pay this in the same way as every one else

Not quite. There is a provision for motor boats under 12 meters to pay nothing at all. That covers most of the local boats - fishing and pleasure that fill up the harbours. Perhaps time to cut 3 inches off the sugar scoop, and take the mast down......:biggrin-new:
 

jimbaerselman

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Not quite. There is a provision for motor boats under 12 meters to pay nothing at all. That covers most of the local boats - fishing and pleasure that fill up the harbours. Perhaps time to cut 3 inches off the sugar scoop, and take the mast down......:biggrin-new:
Not sure about that Chris. There are quirks of ifs or buts in the translation, and there is an anomaly between two paragraphs of the law (as I've translated it - ooops!) which has to be to be explained.
 
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