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 expiry of the payment deadline, a new amendment submitted to the draft law “New Development Programme for Public Investments and additional provisions” regulates, among other things, the issue that had arisen with the taxation of private pleasure boats (class B ships of Law 27/1975) by amending paragraph f’ of par. 2 of Article 12 of that law.
Let’s see, in summary, what is now in place:
Who has to pay the class B ship tax?
Therefore, a tax rate of 0 (“zero”) is set for private pleasure boats up to seven (7) metres in length, which will apply from the tax year 2023 onwards. That is, the Class B vessel tax for these vessels is abolished. It is important to remember that, in the event this tax was not paid for tax years 2020, 2021 and 2022, it is not recoverable.
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
- For vessels over 12 metres, the tax rate is 5
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 (article 44 of Law 4111/2013) is imposed on private yachts of up to seven (7) meters. It should be recalled that until recently, only boats under 5 meters were exempt from this tax. In other words, luxury living tax will be imposed on the amounts of the annual objective expenditure resulting from the ownership or possession of each vessel, as they result from the income tax returns and other additional data available to the GGPS.
For private pleasure craft of private use over seven (7) meters, the tax is equal to the product of the amount of the annual objective cost of the vessel multiplied by a rate of thirteen percent (13%). No account shall be taken of the cost of crew’s wages, while sailing and pleasure boats constructed or built in Greece entirely of wood, trebuchet, boat, boatman, boatman, cherniki, liberty which originate from Greek maritime tradition shall be exempt from this tax.
