Greece: new VAT circular on private use of commercial yachts

With the publication of Circular E.2006 on 18 February 2026, Greece has taken a significant and long-awaited step towards greater clarity in the VAT treatment of the private use of yachts registered as commercial. For years, the lack of a clear framework on this issue has created uncertainty for owners, captains and operators.

The new circular adopts a clear and pragmatic approach: the private use by the owner of crewed yachts registered as commercial is now recognised as a passenger transport service, subject to the reduced VAT rate of 13%.

What makes this update particularly relevant is the method used to determine the taxable base, which is calculated on actual operating costs rather than theoretical estimates or market benchmarks. These include, for example, crew wages and related costs (pro rata), fuel consumption, port fees and associated charges, as well as provisions and onboard supplies. This model reflects the operational reality of yacht management, introducing long-awaited elements of fairness, transparency and predictability.

From uncertainty to a defined framework: the previous absence of guidelines had led to divergent interpretations in the market, ranging from overly cautious approaches to practices with potential compliance risks. With this circular, Greece sends a clear and positive message: clarity and compliance can coexist without compromising the attractiveness of the destination.

In an increasingly competitive Mediterranean, where tax regimes play a decisive role in the choice of charter bases, this move positions Greece as a jurisdiction committed to finding practical solutions aligned with industry needs. In a context of growing regulatory complexity across different countries, such clarity is not only welcome but essential to ensure stability and confidence for all stakeholders.

In line with this view, the market welcomes the new circular as a concrete signal of openness and modernisation of the Greek tax framework for commercial yachting. “This circular represents a very positive step forward, bringing long-awaited clarity and a practical operational framework that reflects the real dynamics of yachting operations. It strengthens Greece’s position as an attractive and competitive charter destination,” said Alex von Stein, CEO of SOS Yachting.

The introduction of a clearer framework now makes it essential for owners and management companies to review their procedures. It will be necessary to reassess how private use is currently structured, ensure that cost allocation is properly documented, and align internal processes with the new guidelines. Timely preparation will be key to ensuring a smooth and compliant 2026 charter season.

Beyond the technical aspects, this circular represents a broader step towards greater alignment between regulators and the realities of the industry. If Greece continues along this path, it will further strengthen its position as one of the most transparent and well-structured charter destinations in the Mediterranean.

Filippo Ceragioli

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