Draft Law On Yacht Tax Criticized

Associations that represent professional and private owners of yachts have reacted to the draft law of the Ministry of Economy and Finance that levies new taxes on the yachting industry.

The finance ministry recently announced a draft law according to which yacht owners will be obliged to pay an annual luxury tax if the vessel is over 10 meters in length, regardless if the yacht is used for private or professional purposes.

The Hellenic Professional Yacht Owners Association (EPEST) recently warned that 3,500 professional yachts will “collapse” if the draft law is not withdrawn.

EPEST’s president, Antonis Steliatos, presented this year’s data on the industry’s status and compared it with that of 2008.

“In 2009 a 25-30 percent fall has been recorded for yachts of 49-people capacity, an 80 percent fall in 12-people vessels and a decline of 20-30 percent for sailing boats,” Mr. Steliatos said.

On his part, the president of the Union of Representatives of Private Yachts, Yiorgos Papamichalopoulos, spoke of the “general destruction of private and professional yachting in Greece.”

The union noted that the imposition of the annual luxury tax is set for 15 October and varies with the length of the vessel.

For example, yachts of 20 meters of length will be taxed 8,500 euros; 30 meters of length will be taxed 20,000 euros; 40 meters of length 33,000 euros; 50 meters of length 46,000 euros and 60 meters of length 59,000 euros.

In addition, an extraordinary one-off levy will also be imposed on private boats that are in Greek waters as of 31 March 2009.

Mr. Papamichalopoulos added that those who earn from the downstream of Greek yachting are the Turks, Spaniards and Italians.

“They do not burden the yachts that visit their marinas and dock in contrast with the Greek situation,” said Mr. Papamichalopoulos.