Despite initial worries about a new tax reducing superyacht visits, Greece experienced a 10.75% increase in 2023.
The Greek Cruising Tax, or TEPAI, was introduced in May 2019 for vessels over 7 meters. It imposes a rate of eight euros per meter on yachts longer than 12 meters. Although many feared this would hurt the thriving Greek yachting scene, the outcome was surprisingly positive.
Key Takeaways
Destinations like Corfu, Athens, Mykonos, Cephalonia, and Rhodes saw more superyachts. Crete, impressively, reported a 50% jump in visits. This surge debunked concerns, showing the industry’s resilience.
- The Greek Cruising Tax (TEPAI) was introduced in May 2019 for vessels over 7 meters.
- Popular Greek yachting destinations saw significant increases in arrivals; Crete saw a 50% rise.
- Yacht owners paid months in advance, indicating proactive adaptation to the new tax.
- Other charter regulations affect vessel itineraries, especially those without a Greek charter license.
Yacht owners and operators adapted well to the TEPAI, with some even prepaying for months. This showed a forward-thinking attitude in the community.
However, superyacht experts pointed out that while the tax wasn’t a major hurdle, careful payment planning was essential. This is because the system does not offer refunds for itinerary changes. Furthermore, other regulations can complicate charter plans, notably for ships lacking a Greek charter license.
Analysis Of The Greek Cruising Tax (TEPAI)
In 2019, Greece introduced the Greek Cruising Tax (TEPAI) for vessels longer than 7 meters. It specifically targets yachts over 12 meters with tailored rates. This move underscores Greece’s dedication to organized yachting taxes, having been planned since 2014.
TEPAI, anticipated for years, took effect in 2019. It mandates monthly payments, changing how yachts are taxed. Contrary to worries of declined yacht tourism, the tax sparked an increase.
TEPAI’s rollout revealed several system problems, especially in payment registration. Errors in autofill data and missing forms at the Port Police were common, affecting around 50% of boats. Yacht agents became essential in navigating these new regulations for owners.
The community gradually adjusted to these obstacles. Despite stringent rules set in 2018 for commercial yachts, many obtained Greek charter licenses. This allowed them to operate similarly to Greek-registered yachts.
This swift adaptation ensured a smooth sailing season. It boosted confidence among yacht owners to venture into the Mediterranean, highlighting the resilience of the marina sector.
TEPAI Payment Requirements and Procedures
The TEPAI payment process starts by checking your yacht meets the guidelines before you sail into Greek waters. This tax hits all boats longer than 7 meters, with bigger vessels over 12 meters facing a fee of eight euros per meter.
Yacht charters and lovers of luxury boating need to pay this fee for smooth sailing in the Aegean. The payment system, though, can be a hassle because of the technical snags reported by the Cruising Association and marine experts, like system failures and unclear payment confirmations.
One dependable approach is to pay directly at Greek banks, where they give you a receipt. You must keep this receipt with you on your boat. It’s helpful to know the monthly fees for budgeting:
| Vessel Length | Monthly Rate (Euros) |
|---|---|
| 7 – 8m | 16 |
| 8 – 10m | 25 |
| 10 – 12m | 33 |
| Over 12m | 8 per meter |
If you plan to stay longer or secure your sailing time early, consider paying for several months at once. Doing so not only confirms you’re following the rules but also snags you a 10% discount for early payment in December for next year or January for the same year.
Not paying the tax or making a mistake during registration could lead to fines or more serious troubles. To avoid these, make sure to carefully follow all necessary steps and double-check that your payments are complete and correct.
Who is Affected by the TEPAI?
The TEPAI’s effect differs widely among users and boat kinds. Commercial and charter yachts not only pay the tax but also adhere to strict crew and passenger manifest rules as of April 2020. Owners of leisure crafts over 12 meters, particularly those on tight budgets, might feel the weight of these expenses heavily.
Moreover, yachts visiting nearby nations like Turkey, Croatia, or Italy may face planning hurdles due to the tax requirements. However, boats registered as ‘not in use’ or stored dry for a year get a pass from the tax. This offers room for smart planning, enabling owners to either reduce or dodge the tax entirely if their vessels stay off Greek waters.
TEPAI’s Effect on Superyacht Industry
The introduction of the TEPAI, also known as the Greek Cruising Tax, initially raised concerns. Many in the superyacht sector feared it might repel luxury Mediterranean yacht charters. This tax required yacht owners to adapt to new fee structures. Specifically, yachts over 12m face a charge of €100 per meter annually.
Meanwhile, vessels measuring between 7m and 12m incur annual costs between €200 and €400. Consequently, devising effective planning and payment strategies became crucial. This was especially true for superyachts that are docked in Greek waters throughout the year.
Industry Concerns and Responses
Yacht owners and operators expressed worries about the TEPAI’s financial and administrative burdens. Liveaboards, who often keep their boats in the water year-round, felt especially impacted. Nonetheless, the industry quickly found practical solutions. They took advantage of options like monthly payments at €8 per meter or a full-year commitment for a 30% discount.
This flexibility proved essential in mitigating initial hesitations regarding the TEPAI regulations. It demonstrated the industry’s resilience and adaptability.
Comparative Analysis Before and After Implementation
An analysis of yacht arrivals before and after the TEPAI’s enactment shows a surprisingly positive trend. Despite fears, the year 2019 saw no significant drop in superyacht visits. On the contrary, statistics revealed an uptick in arrivals. This indicates the superyacht industry’s enduring strength, even in the face of additional taxation.
The Greek ministry has actively addressed sector feedback, tackling challenges like frequent port entries and the intricacies of charter licenses. Such efforts reflect a commitment to sustaining the superyacht market’s growth in Greece.
| Aspect | Details |
|---|---|
| Annual Cost for 7m-12m Yachts | €200 – €400 |
| Annual Cost for Yachts over 12m | €100 per meter |
| Discount for Monthly Payment | €10 per meter |
| Full Year Discount | 30% off |
| Implementation Date | May 9, 2019 |
| Number of CA Members in Greek Waters | About 1,500 |
| Tax Validity | Calendar year |
| Yacht Owners’ Response | Pragmatic adaptation |
FAQ
What is the Greek Cruising Tax (TEPAI)?
The Greek Cruising Tax, known as TEPAI, was introduced in May 2019. This tax applies to vessels over 7 meters, including superyachts. It’s aimed at unifying taxation and boosting revenue in the yacht charter sector. Vessels exceeding 12 meters are taxed at eight euros per meter each month.
Why was the TEPAI introduced?
Greece introduced TEPAI to standardize yachting taxes and enhance charter sector earnings. This regulation supports the local maritime sector. It ensures fair competition among yacht owners and operators.
How do I pay the TEPAI?
TEPAI must be paid before or as you enter Greek waters. You can pay online, though sometimes you must pay at Greek banks due to technical issues. It’s wise to keep payment evidence to avoid fines.
Which vessels are affected by the TEPAI?
TEPAI covers leisure vessels over 7m in Greek waters. Those between 7m and 12m pay a fixed yearly fee. Vessels over 12m are charged eight euros per meter monthly. This includes private, charter, and commercial yachts, plus day-trip boats with less than 49 passengers.
