Greece - Obligation to export a yacht during a change of flag

While preparing for yacht operation, yacht owner usually faces the need in her customs clearance and flag selection.

In case of new yacht purchase selection of suitable customs regime depends only on yacht owner and planned operation region, while in case of old yacht purchase yacht owner should rely on the current customs regime applicable to the yacht. See our article for terms and conditions of yacht registration and operation under temporary import regime. Now, let us describe in details specifications of free circulation/import regime at the EU territory, whereunder VAT on yacht has been paid upon her purchase or import to one of the EU member states.

There is an opinion that for pleasure yachts with VAT paid in the EU registration under the European flag is mandatory. However, it is not stipulated by EU regulations. See our article for detailed registration of yachts with VAT paid in the EU and grounds for losing the import status.

Meantime, local legislation of the EU member state where yacht registration is planned may differ from law enforcement practice applicable therein. Pursuant to Article 3 of the Decision No. D257/139/23-02-2000 of the Ministry of Finances of Greece, in case of changing the Greek flag by non-European flag the yacht owner shall comply with prescribed yacht export formalities. Regulations for export shall be mandatory even in case when the new owner is the EU resident. As we know, export entails both loss of paid VAT and impossibility to operate the yacht at the EU territory for unrestricted term.

If the yacht stays in territorial waters of Greece after export, such yacht shall be subject to temporary import regime, followed by issuing transit log. In such case, yacht departure from territorial waters of Greece is not required.

Therefore, either before yacht purchase or in the process of closing sale & purchase deal, we recommend our clients to apply for legal assistance in advance. Interlegal yachting term will help you to choose the most suitable yacht ownership structure, flag and customs regime in accordance with EU regulations and local legislation, for avoidance of obstacles during yacht further operation.