Zakynthos Informer Zakynthos Informer
Related Articles
If you own a boat, read on.
From 2nd April, a new tax is being introduced. Not only do you pay ‘luxurious living tax’ but you will be liable, also, for the new ‘teli kikloforias’ – circulation tax – the sea equivalent of road tax.
All owners of recreational crafts, over 7 metres in length as well as those that exploit tourist boats for day trips for recreational purposes, need to pay this new tax.
In agreement of the law, the lump pre-payment of the tax, that is for 12 months, needs to be paid by the end of December of the previous year to be taxed. Due to the postponement, by the relevant ministries, this year owners will be charged only for the months from April to December.
The per current-month payment is made with a payment code, which is issued every month electronically. If a payment code can not be issued electronically, the payment may be made to the tax office or to the port authority.
In particular, the “Tax of Recreational and Day-ships” (ΤΕΠΑΗ / TEPAI) is paid for each month of the vessels stay in Greek territorial waters. Payment is made before the beginning of the month for which the tax is due and may also cover more than one month.
Specifically, according to article thirteen of Law 4211/2013, as well as based on a recently issued joint decision of the Minister of Shipping and Islands Policy, F. Kouvelis, and the Deputy Minister of Finance, Aik. Papanatsiou, mentions:
1. Those who possess private or professional pleasure craft over seven metres in length, as well as those who exploit professional tourist dayboats must pay a special tax, in favour of the State, which has the name “Tax of Recreational and Day-ships” (TEPAI). TEPAI is imposed on all the aforementioned pleasure boats and professional tourist dayboats within Greek territorial waters, regardless of their flag. Excluded are the decommissioned or impounded vessels, ‘traditional ships’ and those in a state of immobility, which is certified by the competent Port Authority.
2. TEPAI amounts to:
a. for the overall length of seven (7) to eight (8) metres, one hundred ninety (190) €,
b. for the overall length of eight (8) to ten (10) metres, three hundred (300) €,
c. for the overall length of ten (10) to twelve (12) metres, four hundred (400) €, d. for the overall length of more than twelve (12) metres, one thousand one hundred (1100) €.
Especially for professional pleasure boats and tourist dayboats, a 25% discount applies. Thus, for example, the annual tax for a 12 metre private pleasure boat is € 1,152 (€ 96 per month X 12 metres), while for a professional pleasure boat or a tourist dayboat of the same length, for which a 25% discount applies , the tax is set at € 864 [(€ 1,152 – (€ 1,152 x 25%)].
3. The TEPAI payment is carried out for each month of stay in Greek territorial waters. The payment is made before the beginning of the month for which the tax is due and may also cover more than one month.
4. A discount of 25% is payable on the amount due to professional recreational craft and professional tourist dayboats having an overall length of more than 12 metres, under the condition of exclusive business use, for the period for which the discount is claimed.
* There is a further 20% discount on the amount due, in professional recreational craft and in professional tourist dayboats having an overall length exceeding 12 metres, irrespective of their flag, provided that they enter and remain in ports of Greek territory, during the current calendar year and for the entire year. The discount is granted on the condition of one-off payment or advance payment of the annual fee for the entire calendar year.
* A 10% discount on the amount due is provided, in the case of one-off payments of the total current year in the month of January of the relevant calendar year or a one-off pre-payment for the following calendar year in December of the previous relevant year.
The fines
For the non-payment of the TEPAI in addition to payment of the tax, the Authority that discovers the non-payment imposes the fines, as follow:-
a. for the overall length of seven (7) to eight (8) metres, one hundred ninety (190) €,
b. for the overall length of eight (8) to ten (10) metres, three hundred (300) €,
c. for the overall length of ten (10) to twelve (12) metres, four hundred (400) €
d. for the overall length of more than twelve (12) metres, one thousand one hundred (1100) €.
The period of immobility is not charged.
And … a Luxurious Living Tax
In addition to the “Teli kikloforias”, owners with a boat of more than 5 metres in length are also charged with a Luxury Living Tax which equals the total of the amount of the annual objective expenditure at a rate of 13%.
From the tax are excluded sailing boats and pleasure boats that have been built or are manufactured in Greece entirely of wood, i.e. ‘trekandiri’, ‘varkalas’, ‘perama’, ‘cherniki’ and ‘liberty’ which come from Greek naval tradition.
The ‘tekmirio diaviosis – presumption of subsistence’ in motor boats open type (without accommodation space) high speed or not, overall length up to 5 metres, the presumption is set at € 4 000. For more than 5 metres this amount is increased by 2,000 € per metre.
In motorized or mixed boats with accommodation space, up to 7 metres overall length, the presumption is €12.000.
For over 7 and up to 10 metres overall length, add € 3.000 per additional metre length.
For more than 10 and up to 12 metres overall length, add € 7.500 per additional meter length.
For more than 12 and up to 15 metres overall length, add € 15.000 per additional metre length.
For more than 15 and up to 18 meters overall length, add € 22.500 per additional metre length.
For over 18 and up to 22 metres overall length, add € 30.000 per additional metre length.
Finally, for vessels over 22 metres overall length, add € 50.000 per additional metre length.
Reduction in presumption
Significant discounts in the ετήσια αντικειμενική δαπάνη διαβίωσης / annual objective living expenses, that result by ownership or possession of a recreational craft, is given by the following cases provided by the tax law 3842 (Government Gazette 58 / 23.04.2010).
Boat immobility:
significantly reduces the presumption, which is annual, depending on the time the vessel will stay (and be declared) idle. That is, the presumption will be valid only for the months of use of the vessel, provided that the relevant “beneficial” provisions are used.
Oldness of boat:
the presumptions are reduced by 15% after 5 years, 30% after 10 years from the first registration in the Registry of Ships, or Lemvologio, or the Small Boat Registration Book – BEMS, depending on the total length of the boat.
Age of vessel owner:
the presumption is reduced by 30% to pensioners over 65 years of age.
Type of vessel:
the presumption is reduced by 50% for boats with accommodation spaces and at the same rate of 50% for pleasure boats manufactured in Greece which are made entirely of wood, (of the types ‘trekandiri’, ‘varkalas’, ‘perama’, ‘cherniki’ and ‘liberty’, derived from the Greek naval tradition).
Permanent residence abroad:
the presumption does not apply to recreational craft for private use, ownership or possession 0f permanent residents abroad.
Business boats:
the presumption expenses are not taken into account for commercial boats.
