A controversial Greek boating tax, which could cost owners thousands of euros per year, has been ruled lawful by the European Commission
Boatowners considering moving their yacht to Greece may want to rethink their budget, after the European Commission ruled that TPP tax is lawful.
The controversial Greek boating tax, which was introduced by the local government towards the end of 2013, has yet to be enforced by the authorities.
However, a statement released today (18 February) by the Royal Yachting Association read: “The European Commission has reviewed the Greek legislation and has concluded that the tax does not contravene EU law.
“It remains to be seen, however, whether the recent political changes in Greece will have an impact on the speed with which this legislation is implemented (if at all).”
The RYA statement added that TPP appears to conflict with the European Commission’s efforts to encourage recreational boat tourism within the EU.
Greek boating tax explained
TPP is a Greek boating tax that is levied on all boats over 7m in length that either visit or are kept in Greek territorial waters.
In theory, the tax can be levied regardless of the nationality of the owner or the boat, and it would hit larger motoryacht owners particularly hard.
For boats measuring up to 12m, the tax is capped at €400 per year, but any vessel measuring more than 12m LOA will have to pay €100 per metre, per year.
This means that a Sunseeker Predator 57, which measures 17.6m LOA, would be liable for €1,700 of TPP tax per year if moored in Greek territorial waters.
However, the Cruising Association explains that a 30% discount is available for those who opt to pay annually.
Other Greek boating costs include the DEPKA permit to cruise, which costs €30 per EU-flagged vessel and may be subject to a €15 processing fee.