Class B Ship Tax

Surely if you are in the marine industry or are now taking your first steps with the purchase of a small boat, you will have heard about the b class tax.

However, a few months after its first implementation and just on the day of the expiration of the payment deadline, a new amendment submitted to the draft law “New Public Investment Development Programme and additional provisions” regulates, among other things, the issue that had arisen with the taxation of private pleasure boats (category B vessels of Law No. 27/1975) by amending paragraph f’ of par. 2 of Article 12 of this Law.

Let's see, in summary, what is now in place:

Who has to pay the class B ship tax?;

A tax rate of 0 (“zero”) is therefore set for private pleasure boats up to seven (7) metres in length overall, which will apply from the tax year 2023 onwards. That is, the Class B ship tax for these vessels is abolished. It is important to remember that, in case this tax was not paid for the tax years 2020, 2021 and 2022, it is not reclaimed.

What applies to vessels over 7 metres?;

As a result of the new changes, only private yachts over 7 metres in length are liable to pay the B class boat tax. It applies from tax year 2023 onwards. If this tax was not paid for the tax years 2020, 2021 and 2022, it is not reclaimed.

More specifically, depending on their length we have:

• For vessels from 7,01 to 12 metres, a tax rate of 1 applies
• For vessels over 12 measures, the tax rate of 5 % shall apply 

Is there a Class B tax refund for vessels under 7 metres?;

Those of the owners of private yachts under 7 meters who have already paid the b-class tax, will be able to refund it through a corresponding application and crediting the amount to the iban account they have declared. However, further clarifications are expected regarding this procedure.

What changes for the luxury tax on boats?;

The same amendment provides that, from the tax year 2024 onwards, no luxury living tax is levied (Art. 4111/2013) private pleasure craft up to seven (7) metres in length. It should be remembered that until recently, only boats under 5 meters were exempt from this tax. It will be imposed, ie, luxury living tax on the amounts of annual objective expenditure arising from the ownership or possession of each vessel, as they arise from the income tax returns and other additional data available to the GGPS. 

For privately owned recreational boats over seven (7) meters, the tax is equal to the product of the amount of the annual objective cost of the boat multiplied by a factor of thirteen percent (13%). No account is taken of the cost of crew remuneration, and sailing and pleasure boats and yachts built or constructed in Greece entirely of wood, typon trehantiri, barcalas, prahma, cherniki, libertys which originate from Greek maritime tradition are exempt from this tax.