It amends the draft law of the Ministry of National Economy and Finance to change the structure of tax on private pleasure vessels and “yachts”.
The amendment submitted to the Ministry of National Economy and Finance’s “New Public Investment Development Plan and Supporting Provisions” draft law changes the tax structure on private pleasure vessels and “yachts”.
As the Ministry stated:
“Provisions related to the taxation of Class II small pleasure boats have been included in the amendment submitted to the Ministry of National Economy and Finance’s “New Development Plan of Public Investments and Subsidiary Provisions”. Through this amendment, class B pleasure boats under 7 meters are now exempted from special vessel tax and luxury living tax. is provided.
Exemption from special vessel tax, so owners of B category vessels up to 7 meters will not pay tax for the years 2020, 2021, 2022 and 2023 and those who have already paid (their number is limited) a tax refund.”
More specifically
The provisions of this amendment redefine tax rates and luxury living tax criteria for private pleasure vessels.
As stated in the Explanatory Statement, the objective of the Regulation is to impose a fair tax on pleasure boats of seven (7) meters in length. In fact, it is asserted that the taxation of small pleasure boats lacks quality, and as a result they are treated unequally. Therefore, based on the explanatory statement, the entire framework is rationalized as is the framework for levying luxury tax in respect of these boats.
Especially with the system:
A. The tax rate for the specified category of vessels is reduced to nil from 2023 onwards. Unpaid tax is not claimed for certain tax years (2020, 2021 and 2022).
B. The luxury life line criterion (length of vessel) for private pleasure yachts for private use has been redefined [ολικό μήκος σε μέτρα άνω των επτά (7) αντί των πέντε (5) που ισχύει σήμερα].
For individual pleasure craft, depending on their length:
Total length is the tax rate in meters
- Up to 70
- 7.01 to 12 1
- 12 over 5
And the new framework will be applicable from the tax year 2023 onwards. The regulation states that if the tax for the years 2020, 2021 and 2022 is not paid, it will not be claimed.
“Before” rule
This year tens of thousands of owners of small vessels (yachts) were asked to pay a tax of 100 euros for vessels under 5 meters in length, as well as an additional retroactive payment of 100 euros annually from 2020.
Essentially Law 5036/2023 “picked up” the thread from the 1975 law, which imposed a financial burden on owners of boats regardless of whether they were used for business or personal purposes.
This was particularly burdensome for the owners of about 45,000 small boats who use them for fishing and small “getting out”. The new tax applies to all small and medium-sized seagoing vessels, except fishing vessels and trawlers not primarily used for transport.
It will be recalled that under the previous regime, which is now changing, the amount of tax depending on the length of the boat was structured as follows:
· Boats up to 7 meters: 100 euros per year
· Boats from 7 to 12 meters: 200 euros per year
However, the Minister of National Economy and Finance Mr. Hadzidakis had sent the first message that the 100 euros would be reduced to 50 euros a year in a meeting with Magnesia MP Christos Bougoros. He submitted the amendment to Parliament, op and it happened.
In addition, he had said that the amendment would provide for a law of limits of upfront fees of up to several hundred euros for each owner.