Yacht Charter Taxes & VAT (Updated 2026)

Charter Taxes & VAT

Last update: May 7, 2026

In most countries, a value added tax (or VAT rate) will be added on top of the charter fee. An overview of VAT rates and taxes is provided below, however please make sure to discuss with your Charter Consultant as exceptions may apply and rates are subject to change.

For EU member states, the VAT is due in the country where the charter begins, although there are exceptions to the rule. For charters commencing in a non-EU country, but passing-by or ending in an EU country, VAT will be applicable for the number of days spent in the EU country’s territorial waters. Please keep in mind that the owning company must be VAT registered in each EU country where the yacht intends to start chartering. In most cases, the yacht must be imported under commercial registration into the EU.

France & Monaco

The standard VAT rate for yacht charters starting in France or Monaco is 20%. VAT may be reduced proportionally for the part of the charter spent outside EU waters, subject to correct documentation, including evidence of the yacht’s cruising time and route. VAT is also applicable for delivery and redelivery fees.

Italy

Italy applies a 22% VAT rate to yacht charters, with the final calculation potentially influenced by the charter itinerary and time spent in non-EU waters. Delivery and redelivery fees may also be taxable depending on how the charter is structured and invoiced.

Spain

The VAT rate for yacht charters starting in Spain is 21% for yachts operating with the appropriate Spanish charter licence. The Canary Islands operate under a separate indirect tax regime, with IGIC applying instead of Spanish VAT.

Greece

Greek VAT on yacht charters is applied according to the yacht’s licence, charter duration and itinerary. For eligible charters, the effective VAT rate generally falls between 5.2% and 13%. A 24% VAT rate may apply where the charter does not meet the conditions for reduced treatment.

Croatia

The VAT rate for qualifying multi-day yacht charters in Croatia is 13%. The yacht must hold the appropriate Croatian charter licence and meet local compliance requirements. VAT treatment can depend on whether the charter starts in Croatia, whether the yacht is EU or non-EU flagged, and how many days are spent in Croatian waters.

Montenegro

Montenegro remains a highly tax-efficient charter destination, with 0% VAT generally applicable to yacht charters cruising in Montenegrin waters. If the itinerary includes Croatia, Croatian VAT may apply for the time spent in Croatian waters.

Turkey

Tax treatment for yacht charters in Turkey depends on the yacht’s flag, charter structure, embarkation point, and itinerary. Turkey’s general VAT rate is currently 20%, but some charter arrangements may be subject to different local treatment or cruising taxes.

United States

The United States does not apply a federal VAT on yacht charters. Local sales, use, gross receipts or charter-related taxes may apply depending on the state, county or territory of embarkation and where the yacht operates. In Florida, for example, sales and discretionary county surtax rules vary by county, and local rates should be checked at the time of booking.

Caribbean

There is no single tax structure across the Caribbean. Many islands do not apply a dedicated VAT or charter tax to yacht charters, making the region generally tax-efficient. However, destination-specific fees, cruising permits, national park fees, clearance charges and local levies may still apply.

French overseas territories such as Martinique and Guadeloupe may apply local VAT treatment, while other Caribbean destinations may have no VAT but still require clearance, cruising permits or local fees. Your IYC Charter Consultant will confirm the applicable charges for each itinerary.

The Bahamas

The Bahamas applies a consolidated 14% charter tax on foreign yacht charters in Bahamian waters. The tax is collected through the Bahamas Port Department. Foreign charter yachts must also comply with local permit and clearance requirements.