OWNER'S USE IN GREECE & APPLICABLE VAT
The recent release of Circular E.2006 / 18-02-2026 marks a significant and welcome development for the yachting industry in Greece. For years, the VAT treatment of private use of commercially registered yachts has remained a grey area, often leading to uncertainty for owners, captains, and operators alike.
With this new circular, the Greek authorities have taken a clear and pragmatic approach: owner’s private use for commercially registered yachts with crew is to be treated as the provision of passenger transport services, subject to a reduced VAT rate of 13%.
What stands out in this update is not only the clarification itself, but the methodology adopted. Rather than relying on theoretical or market-based valuations, the taxable amount is calculated based on the actual costs of operating the voyage.
These include, indicatively:
· Crew salaries and related costs (on a pro rata basis)
· Fuel consumption
· Port charges and associated fees
· Provisions and onboard supplies
This approach reflects the operational reality of yacht usage and introduces a level of fairness and predictability that has been missing until now.
From Uncertainty to Structure
The absence of clear guidance on owner’s use has historically created inconsistent interpretations across the market. In some cases, this led to overly cautious approaches; in others, to practices that carried potential compliance risks.
By addressing this gap, Greece is sending a strong signal: clarity and compliance can go hand in hand without undermining the attractiveness of the destination.
A Competitive Signal for the Mediterranean
In an increasingly competitive Mediterranean landscape where fiscal frameworks are closely scrutinised by owners and charterers alike, this move, positions Greece as a jurisdiction willing to provide clear, workable, and industry-aligned solutions.
At a time when regulatory complexity continues to grow across multiple jurisdictions, such clarity is not just welcome, it is essential.
What Owners Should Do Now
While the framework is now clearer, its correct application remains key. Owners and operators should take this opportunity to:
· Review how private use is currently structured
· Ensure that cost allocation is properly documented
· Align internal processes with the new guidance
As always, early preparation and a proactive approach to compliance will be critical ahead of the 2026 charter season.
Looking Ahead
This circular represents more than a technical clarification, it reflects a broader shift toward greater transparency and alignment between regulators and industry realities.
If this direction continues, Greece may well strengthen its position as one of the most attractive and structured charter destinations in the Mediterranean.
For further information, please contact:
legal.greece@sosyachting.com
