The Greek Yachting Association (GYA) have confirmed that the amount of VAT paid for luxury yacht charters in Greece will rise from 13% to 23%, however, key members of the Greek yachting industry are urging charterers not be "put off" by the increase.
Making an official statement on the change, the GYA announced that the new VAT rate will apply to “all charters executed in Greece from July 20 onwards, irrespective of the date the charter contract was signed."
The amount of added VAT owed will depend on the kind of yacht being chartered. For charters that last longer than three days, luxury yachts will fit into two categories that will offer a discounted rate.
Vessels that are “entitled to perform international cruises” will have a 60% discount and therefore a VAT rate of 9.2% (totally a 4% increase).
In the other category, “vessels entitled to perform long range cruises within the Greek waters” will have a 50% discount and resultantly, a new VAT rate of 11.5% (originally 6.5%).
For superyachts rented for less than 48 hours, the full VAT rate of 23% will be required.
Speaking on the new legislation, President of the GYA and CEO of Atlanta Golden Yachts Michael Skoulikidis commented that the increase was "not alarming" considering the current financial situation in the Greece.
He continued, “Even after the recent rise, the VAT level in Greece remains similar to that of many European countries. It is not an alarming increase or one that is out of the boundaries of market reality. Furthermore, I believe that what is important when chartering a yacht, is to see the whole picture and the final cost. VAT should not be considered in isolation but one should assess the total cost, the quality of the services provided and the destination."
Summarising, the President said “Despite the rise in VAT, charters in Greece are still competitively priced and there is absolutely no reason for anyone to be put off from visiting Greece.”
It is widely expected that the new VAT law will not deter charterers from visiting one of the Mediterranean's leading yachting hubs.
Despite the rise in VAT, charters in Greece are still competitively priced and there is absolutely no reason for anyone to be put off from visiting Greece.