Legislation in Greece: what you need to consider
28 September, 2022
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Planning for yacht wintering place should begin well in advance. One of the popular destinations among yachtsmen for this purpose is Greece. Recently, several novelties have been adopted in Greece in terms of taxation and insurance of pleasure yachts, which should be taken into consideration before vessel call, so we will dwell on them in more detail.
TEPAI tax
Since 2019, TEPAI tax has been introduced in Greece. This tax is payable on pleasure yachts over 7 meters long, regardless their flag, upon arrival in Greek territorial waters. Taxpayer shall be shipowner, lessee or yacht user.
There are several cases where a yacht is exempt from paying TEPAI. TEPAI is not payable when the yacht:
– is located in the territory of Greece outside the water, i.e. idle stay ashore or in private premises. In such case, tax is not applicable, since the yacht is not physically located in the territorial waters of Greece.
– decommissioned or having the out of use status certified by the Port Authority.
For certification, it is necessary to file to the nearest port authority an application on recognizing the out of use status, a certificate of registration, a voyage license for non-commercial vessel (for yachts flying under Greek flag) or an appropriate certificate for yachts flying under foreign flag. Yacht certification procedure may be time-consuming, since the decision to grant the status shall be made by the port authority.
If you have chosen Greece, you should take care of the TEPAI exemption in advance in order to protect yourself from unforeseen expenses.
Increase in minimum insurance limits
In spring 2022, in accordance with the new law “On Updating the Institutional Framework for Activity of Pleasure Craft and Cruise Ships, Strengthening Competitiveness of the Professional Pleasure Craft Sector” (No. 4926/2022), new insurance coverage requirements for yachts operating in Greece were introduced, which significantly increase insurance coverage limits.
For pleasure yachts with a gross tonnage less than 300 gross tons, the following minimum TPL (Third Party liability) insurance coverage limits shall apply, depending on the risk accepted:
1. in case of bodily injury or death of persons on board or third parties:
– 150,000 euros per person;
– 700,000 euros per incident;
– EUR 2,100,000 in total for the entire insurance period.
Previously, the limit made up 50,000 euros per person on board and at least 500,000 euros per each incident;
2. in case of damage to property, persons on board or third parties:
– 150,000 euros per each incident;
– 450,000 euros in aggregate for the entire insurance period.
Previously, the limit made up 150,000 euros per incident, with no limits for the entire insurance period.
3. in case of contamination:
– 150,000 euros per each incident;
– 450,000 euros in aggregate for the entire insurance period.
Previously, the limit made up 150,000 euros per incident, with no limits for the entire insurance period.
Therefore, when planning a vessel call to Greece, it is necessary to make sure that insurance coverage of the yacht complies with the fixed minimum limits, and when planning the yacht wintering, procedure for obtaining the out of use status is required, for avoidance of charging TEPAI tax for the period of idle stay.
Interlegal yachting lawyers are always ready to help you to understand the nuances of tax and insurance legislation of European countries, which is rapidly changing and introducing new requirements for operation of pleasure yachts located on their territory.
