Update on New Greek Yachting Law
The Greek government recently passed a new law which prohibits yachts not in possession of a Greek commercial licence from commencing AND ending charters in Greek waters.
OCEDA’s ultimate goal remains one – to ensure all yachts globally are able to cruise in Greece’s incomparable cruising grounds and is committed to provide and deliver solutions to ensure a smooth and stress-free yachting experience.
CHARTERING IN GREEK WATERS – HOW?
With Greek Commercial Licence
OCEDA CAN ASSIST OWNERS TO OBTAIN COMMERCIAL LICENCES
Foreign flagged yachts in possession of a Greek commercial licence are able to start and end charters within Greece freely without restriction.
In light of the new law a number of Oceda’s clients have already instructed us to proceed in obtaining a Greek commercial licence for their yachts. Licences could take 2 months to be issued therefore the procedure should be commenced in good time for the summer season.
VAT at the rate of 9.6% (12% for yachts limited to domestic voyages) will arise on charter fees of yachts operating with a Greek licence in Greece.
There is talk of the law changing to simplify the procedure of obtaining a Greek commercial licence due to extensive lobbying by OCEDA and other key industry players but this is yet to be confirmed and as a result we remain bound by laws currently in force.
Without Greek Commercial Licence
OCEDA CAN HELP PLAN CHARTERS STARTING & ENDING OUTSIDE OF GREECE & CAN HANDLE ALL FORMALITIES & PROVISIONING IN ALBANIA & TURKEY
Yachts without a commercial licence intending to charter in Greece can continue to do so subject to the start and end of the charter taking place outside of Greece. We have fool proof steps in place for clients considering such options to ensure the entry and departure into Greece is effected smoothly from Saranta, Albania and Bodrum and Izmir in Turkey.
While it is frustrating to have to commence and end the charter outside of Greece it’s not all bad news as charterers will:-
– have unconditional access to competitively priced duty-free fuel in Turkey and Albania.
Duty-free fuel also available once commercial yacht is in Greece.
– will not pay VAT on charter fees for time spent in Greece.
FOOD FOR THOUGHT
Supply & Demand of Greek Licensed Charter Yachts
THE NEW LAW IS BOUND TO AFFECT SUPPLY & DEMAND IN THE LOCAL CHARTER MARKET WHERE THERE WILL NOT BE ENOUGH YACHTS ABLE TO COVER DEMAND
An estimated breakdown of the currently available Greek licensed charter fleet is:-
< 20 yachts over 40m < 10 yachts over 50m < 5 yachts over 70m
It is safe to predict that these yachts will NOT be able to cover the demands of charterers looking to charter yachts over 40m in Greece this summer.
Home Porting in Greece
PERHAPS THE TIME HAS COME TO CONSIDER GREECE AS AN IDEAL LOCATION FOR HOME PORTING AS BEYOND BEING ABLE TO COMPETE IN THE UNDERSERVED GREEK CHARTER MARKET THERE ARE NUMEROUS OTHER IMPORTANT BENEFITS:-
Competitively priced marina berthing options with high-end facilities in Athens.
Greek shipyards offer the most competitive rates throughout the Med costing 30-40% less than other European yards with highly skilled and experienced workmen. Greek yards are renowned for their high quality work with plentiful examples of such work including the extensive refit carried out to the 46m Feadship Ancallia refitted in Perama which was awarded the “Best Rebuilt” Superyacht Award in 2015.
Diverse and spectacular cruising grounds to explore and enjoy.
Easy access to Athens’s marinas and shipyards from airport (30-45 minutes) with Athens airport being well-connected internationally.
General annual operation costs including crew salaries 25-30% less than Western European standards.
Duty-free fuel readily available to all commercial yachts.Mild and pleasant weather throughout off-season months.
Safe destination with very low terrorism threat.
OCEDA is a niche yachting company offering turn key services including sales, charter, full yacht management and agency services.
OCEDA is made up of a strong team of knowledgeable and experienced professionals, offering a bespoke, transparent and expert service.
Feel free to contact us if you have any questions or require any pointers.