TAX implications & advantages when purchasing a yacht in Greece: Commercial vs Private Use

Greece offers a highly favorable framework for acquiring yachts within the European Union, particularly when the acquisition is structured through a Greek company. Whether the prospective owner is Greek or a foreign national, the legal and fiscal treatment is ultimately the same. Also, the purchasing process and tax implications are very similar between new and pre-owned yachts. Ultimately, the critical distinction lies not in nationality or the condition of the yacht, but in the yacht’s intended use, whether for private leisure or commercial chartering.

This article outlines the core tax implications, financial incentives, and regulatory differences between these two yacht ownership pathways within Greece.

Private Use Yachts

Private yachts are those used exclusively for recreational purposes by the owner, without engaging in paid charters or commercial activities.

VAT on Purchase

- Standard VAT of 24% is applied to the purchase of a new yacht in Greece.

- If the yacht is purchased from another EU country, the VAT must either be paid at source or declared and settled in Greece upon registration.

- VAT paid status is evidenced through documentation and is required for legal navigation in EU waters.

Annual Taxes and Obligations

TEPAI (Recreational Marine Tax): All privately used yachts over 7 meters are subject to this tax when operating in Greek waters. The rates depend on length:

·     €16/month for 7–8m

·     €25/month for 8–10m

·     €33/month for 10–12m

·     €8/meter/month for yachts above 12m

Discounts apply for annual lump-sum payments (10%) and for yachts permanently moored in Greece (an additional 20%).

No Income Tax Deductions

Since the yacht is not generating income, no tax deductions or VAT refunds are available on maintenance, berthing, insurance, or other operational costs.

Registration

- Private yachts can be registered under the Greek flag, or in another EU country, depending on the owner's preferences.

- Greek registration offers the advantage of alignment with local marinas and services but provides no tax relief unless reclassified as commercial.

Commercial Use Yachts

Commercial yachts are defined as those operated under a licensed business entity for charter purposes. In virtually all cases, this involves the establishment of a Greek company, either a traditional business entity or a NEPA (ΝΕΠΑ – Ναυτιλιακή Εταιρεία Πλοίων Αναψυχής), a legal structure specifically designed for managing yachts engaged in charter activity.

VAT Exemption on Purchase

- Commercial yachts acquired through a Greek company for charter use are exempt from VAT on the purchase price (0% VAT), provided the company meets the legal and regulatory requirements for commercial operation.

- This represents a direct saving of 24% on acquisition costs compared to private-use yachts.

VAT on Charter Revenue

- On top of the VAT-exemption of the yacht acquisition, revenue from commercial operations of the yacht is also tax exempt.

Operational Cost Deductions

Commercial yachts benefit from full deductibility of operational costs, including:

·      Berthing and marina fees

·      Maintenance and technical repairs

·      Crew salaries and insurance

·      Fuel, provisioning, and spare parts

·      Depreciation of the asset over its commercial life

Additionally, commercial yachts often enjoy duty-free fuel and discounted berthing in state-supported marinas.

TEPAI and TEPADAH

While commercial yachts are exempt from TEPAI during charter operation periods, they are subject to TEPADAH (Charter Operation Tax):

- This is a daily tax levied on commercial yachts during active charters in Greek waters.

- It is calculated based on yacht size and gross tonnage and is considered an operational cost.

Corporate Taxation and Tonnage Tax Regime

- The Greek legal framework provides a tonnage tax regime for shipping and maritime companies, including yacht charter operators.

- Under this regime, instead of corporate income tax, companies pay a fixed annual tax based on the gross tonnage of the yacht.

- This results in an effective income tax rate close to 0%, regardless of the actual revenue or profit generated.

- Distributions (dividends) from NEPA-type entities are also exempt from personal income tax in most cases, making the structure highly attractive for investors.

Licensing and Compliance

Commercial operation requires a Greek charter license, which can be issued to any company established in Greece, regardless of the nationality of its beneficial owner.

Required documentation includes:

·     Proof of seaworthiness

·     Insurance and crew contracts

·     Certification of compliance with EU safety and chartering regulations

Once licensed, the yacht can engage in both domestic and international charters originating from Greek marinas.

Conclusion:

Purchasing a yacht in Greece via a Greek-established company provides a clear and legally structured path to ownership, whether for private recreation or commercial chartering. However, the financial implications differ significantly based on the yacht’s intended use.

- For leisure-only owners: standard EU VAT and recreational taxes apply, with minimal deductions.

- For commercial investors: the Greek legal framework offers considerable advantages, including VAT exemptions from the purchase of the yacht & charter revenues, near-zero income tax via the tonnage tax system, and full deductibility of operating costs.

Cosmos Yachting specializes in assisting both private buyers and commercial investors through the entire acquisition and registration process. We offer tailored financing, full charter licensing support, and yacht management services, ensuring that every owner, whether individual or corporate, derives the maximum legal, operational, and financial benefit from their investment in Greece. Take a look at our financing plans or fill out the inquiry form to show us your interest.