Charter Taxes & VAT
Last update: January 1, 2023
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 VAT rate is 20%. A reduced rate of 10% is applicable for itineraries including navigation in international waters. VAT is also applicable for delivery and redelivery fees.
Italy
The VAT rate is 22%. VAT is also applicable for delivery and redelivery fees.
Spain
The VAT rate is 21% for yachts with a Spanish charter license.
Greece
The VAT rate is 9.6% or 12% for yachts with a Greek charter license.
Croatia
The VAT rate is 13% for a yacht with a Croatian charter license.
Montenegro
The VAT rate is 0% while cruising in Montenegro. If the itinerary includes cruising in Croatia, then Croatia’s 13% VAT is due for each day the yacht spends in Croatia.
Turkey
The VAT rate is 0% while cruising in Turkey, however local cruising taxes apply. Yachts with a Turkish flag are taxed at 18%.
United States
A charter tax may be applicable based upon county of embarkation.
Caribbean
There is currently no VAT or taxes applicable for the Caribbean.
The Bahamas
A 4% charter tax is applicable on all charters in The Bahamas.
