Yachting in Greece: Changes for foreign boats over 35 meters

Within the next few days, the electronic charter platform (e-Charter Permission) is expected to be put into operation for vessels over 35 meters that do not have a Greek business license.

This is a development that, as estimated by industry players, will change the market of pleasure boats in Greece as it will be possible for boats owned by companies that do not have a Greek business license to be chartered in Greece for charters from Greek to Greek ports.

Until now, these boats came to Greece as transit. By using the platform, however, they will be able to declare charters that start from a Greek port and end in a Greek port.

According to the general secretary of Shipping, Evangelos Kyriazopoulos, there are still some technical corrections left and in a few days the platform will go live.

This possibility was allowed by law 4926/2022 passed in April 2022, under certain conditions.

However, to date it has not been implemented as the interpretative ministerial decision has not yet been issued regarding articles eight and nine of the law that allow the operation of foreign vessels while the electronic platform (e-Charter Permission) in which charters will be declared.

The contracts

This pending matter is dealt with by the Minister of Shipping, Christos Stylianidis, and recently, as it became known, the platform was presented by the Ministry to those interested in the yacht market and to the Hellenic Chamber of Shipping, and everyone is now waiting for it to also be posted in November.

It is recalled that according to article 8 of the specific law, “within the Greek Territory, regardless of the flag and other than the Greek one, which has been classified as professional recreation, according to the law of the state of the flag that it flies and is of a total length of more than thirty-five (35) meters”, a “Specified Period Charter Permission” is required for the chartering of a commercial recreational vessel of a certain capacity recognized under the law of another country.

Its maximum duration is set at twenty-one (21) days per calendar year, a period of time that may correspond to one or more full charter contracts. The appointment of a tax representative is also foreseen.

VAT

With this arrangement it becomes possible to pay VAT on the fare by the operator of the ship as well as the payment, in accordance with article nine, of a fee (Professional Pleasure Boat Fee recognized in accordance with the Law of Another Country).

However, the chartering of pleasure boats in Greece without having a Greek business license has caused a tug-of-war in the industry in the last few years that the issue has been discussed.

One side only notes benefits from the activity of foreign vessels, the other, without being against the liberalization of the market, points out that double standards are being created at the expense of Greek vessels and proposes certain measures to achieve some “balance”

Competition

For his part, Mr. Michalis Skoulikidis, President of the Hellenic Marine Tourism Association, points out that a series of points of articles eight and nine of the law that allows the chartering of ships without a Greek professional license should be clarified so that there is no issue of unfair competition.

Indicatively, he states that it is necessary for the state to know the owner of the vessel, in order to have transparency as we live in an era with sanctions against many Russians and investigations for money laundering.

It is also necessary to create a mechanism to find the real charter prices, as is the case with the Greek ships whose charters are on Yachtfolio.

Also the VAT deduction should be made at the end of the year and after it is proven that, during the charter, 60% of the voyage and time of the vessel was six nautical miles beyond the coastal zone of the port of departure, which is valid also for boats with a Greek business license.

Controls

In addition, the private use of the vessel should be done only by the majority shareholder of the ship-owning company. It must also be ensured that the 21 days will be controlled and furthermore the Professional Pleasure Boat Fee should be in the order of 12-15% of the actual charter price and not the lower amount proposed in the law.

On the other hand, Ms. Gina Polemi, vice-president of the Panhellenic Association of Marine Tourism Professionals (HCPY) sees many positive sides as she estimates that the direct state revenue from VAT collection will increase from the charter and fee, while the indirect government revenue from many categories of businesses and professional sectors that act in support of professional yachting, such as ship bunkering companies, shipbuilding companies, marinas, local airports, catering companies, will also increase, thanks to the increased number of commercial yachting leisure activities that are expected to operate in the country.