Legal & Tax Considerations for Yacht Chartering in the EU

Chartering a yacht within the European Union involves a wide range of legal and tax obligations.
In particular, VAT treatment varies significantly by country, depending on where and how the yacht is operated.

VAT Regulations in Key EU Member States

  • France & Monaco:
    20% VAT on charter fees. Partial VAT refunds may be possible if the itinerary includes international waters.
  • Italy:
    22% VAT on charter fees. Reduced rates for international voyages have been abolished.
  • Spain:
    21% VAT on charter fees, plus a 12% matriculation tax on the yacht’s value.
  • Greece:
    VAT rates range from 9.6% to 12%, depending on vessel type and licensing, for yachts with a Greek charter licence.
  • Croatia:
    13% VAT on charter income. Non-EU flagged yachts require a valid Croatian charter licence to operate legally.

Key Legal Considerations

  • Charter Licences:
    Many EU countries require specific charter licences, particularly for yachts sailing under non-EU flags.
  • VAT Representation:
    Non-EU owners may need to appoint a local VAT representative in order to comply with domestic tax reporting obligations.
  • Flag Choice:
    The choice of flag state has major implications for VAT, import duties, and regulatory compliance – including safety and crewing requirements.
  • Contractual Framework:
    Standard contracts such as the MYBA charter agreement are not always sufficient. They often require local amendments or addenda to meet jurisdictional requirements and avoid unenforceable clauses.
    (More on this issue →)

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We look forward to supporting you with your EU charter project – from licensing and flag strategy to tax compliance and contract design.

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