| Thinking of buying a yacht in Greece? There are | | | | The VAT rate in Greece is 19% but often you can |
| bargains to be had, especially at the end of the yacht | | | | negotiate with the Seller and it is not unknown for |
| charter season. But there are pitfalls to be aware of | | | | deals to be reached where you pay only an additional |
| too. | | | | 5% and the Seller handles the payment of the |
| The majority of Greek yachts listed with brokers are | | | | remaining VAT. |
| former charter yachts, known as Greek professional | | | | You may be exempted from payment of VAT if |
| yachts. Some people shy away from them, believing | | | | you are involved in commercial activity that includes |
| it equivalent to buying a second-hand vehicle from a | | | | yacht chartering. |
| car hire firm. Not all charter yachts are ill-used or | | | | If you are not an E.U. Citizen you will not need to |
| poorly maintained. | | | | pay the outstanding VAT, but you will require the |
| In fact, a lot of the professional yachts in Greece are | | | | yacht to be custom cleared from the E.U. This takes |
| owned by individuals rather than yacht charter | | | | several days and costs about 600 Euro. |
| companies. The owners charter them out in order to | | | | TYPICAL PURCHASE PROCEDURE |
| benefit from VAT and other tax advantages. | | | | Having found a yacht, you negotiate a price with the |
| Often the owner will charter for the minimum number | | | | broker and reach an agreement. You should be |
| of days required to retain professional status and | | | | supplied with an inventory for the yacht so you |
| cover the annual mooring and maintenance costs of | | | | know exactly what is included in the sale. |
| the yacht. | | | | You need a solicitor to act for you during the sale. |
| If you are prepared to spend time looking around | | | | Your solicitor will protect you by ensuring that there |
| you will find a big difference in the appearance of | | | | are no encumbrances or debts on the yacht, and |
| yachts of the same age, with some looking 'tired' | | | | that the ownership situation and titles are clear. |
| from heavy use while others seem years younger. | | | | The solicitor will prepare an M.O.A. (Memorandum of |
| THE SURVEY | | | | Agreement) stating all the details of the transaction, |
| Having found a yacht you want to buy you should | | | | including terms, dates and payments, and what |
| have it surveyed by a professional surveyor. It is not | | | | comes with the boat. This Memorandum should be |
| unknown for a charter yacht to suffer major hull | | | | conditional on a survey. The M.O.A. is signed by both |
| damage, be patched up by an unscrupulous owner, | | | | Buyer and Seller. |
| and then offered for resale. | | | | You arrange a survey of the yacht and, on the basis |
| "Buyer Beware" should certainly be your motto. | | | | of this, either agree the price, re-negotiate, or in |
| A survey will not only protect you from buying a | | | | some cases the wisest action may be to walk away! |
| boat with technical problems but it is also required by | | | | You normally pay a deposit of 10-20% of the |
| most insurance companies. You will pay 500 - 1500 | | | | purchase price to your solicitor as soon as possible in |
| Euro for a survey. | | | | order to have a legally binding agreement. Your |
| GREEK FLAG | | | | solicitor will pay this to the seller after all the |
| 99% of Greek professional yachts are Greek-flagged. | | | | necessary documents have been handed over to him. |
| If the boat is flagged in another country then the | | | | You must send the balance of the purchase price to |
| rules of that country will apply and you need advice | | | | the solicitor in time to comply with the provisions |
| from a qualified broker. | | | | negotiated when drafting the Memorandum of |
| If you are not a Greek citizen or an E.U. citizen | | | | Agreement. The solicitor will pay the full purchase |
| resident in Greece you will need to change flag if the | | | | price to the seller only after he has made sure that |
| boat is intended for private use. You can keep Greek | | | | all legal and tax requirements have been taken care |
| flag if you have a yacht charter business in Greece. | | | | of by the seller and after all required documents |
| SALES PRICE | | | | have been handed over to him by the seller. |
| We were once advised never to pay a Greek the | | | | As part of the sales process the yacht will be |
| price he asks for anything, as he will always expect | | | | deleted from the Greek registry. Upon deletion an |
| you to bargain... | | | | official ownership certificate will be issued from the |
| This is certainly true when it comes to boats. You | | | | Hellenic Registrar of Shipping. The certificate will |
| should be able to negotiate down from the initial | | | | confirm that the boat is free from encumbrances and |
| asking price. A good survey may give you | | | | liens. |
| ammunition for this, as few used boats will be | | | | In the meantime you can arrange registration for the |
| without any defects. | | | | boat in your country. |
| The surveyor should be able to advise you what the | | | | After completion of all the paperwork you can take |
| 'going rate' is for the type of yacht you are | | | | over your boat here in Greece or you can arrange to |
| interested in. | | | | have it delivered to wherever you intend to keep |
| Some brokers in Greece do not work on a fixed | | | | her. |
| commission basis. They will agree a price with the | | | | You can only sail your yacht after a Bill of Sale has |
| owner that he/she will accept. They then try to | | | | been issued and officially signed by both Seller and |
| obtain as high a price as possible from the purchaser. | | | | Buyer and the Deletion Certificate has been issued. |
| Their commission is the difference. The extra they | | | | Buying a yacht can be a fairly lengthy and |
| add to the 'owner's price' can be quite considerable | | | | bureaucratic process here in Greece but many of the |
| and leaves plenty of scope for negotiation. | | | | procedures are there to safeguard your interests and |
| VAT | | | | ensure the yacht is free of debts or any other |
| Greek professional yachts will have been purchased | | | | financial burdens. |
| VAT exempt. If you are an E.U. national, you will be | | | | Do not be tempted to take any shortcuts or accept |
| required to pay VAT on the current value of the | | | | any bits of paper presented to you by an eager |
| yacht in addition to the purchase price. | | | | seller supposedly to speed up the process. |