US Resident. Dual National. VAT decisions for boat in Greece

[MyCatLife]

Trying to determine my best options regarding purchase, registration, and VAT. I have read numerous websites, and forum threads and haven't found a good answer, even though it seem like it should be a relative common issue. It seems incredibly complicated. There must be a "best" answer.

Me: USA resident. USA citizen and UK citizen
Wife: USA resident. USA citizen and Spain citizen

We are keeping our US residency. We will not exceed 182 days in Greece / EU.

What is my best option for complying with VAT laws for a catamaran for personal use. Estimate $500K purchase price w/o VAT. I want to be VAT compliant,... but it is a lot of money!

The boat is planned to stay in Greece / Med until we sell. 10 years??

Should I :

1. Buy a EU boat VAT paid register in EU?
2. Buy and EU boat w/o VAT,... and take boat out of EU before the 18 mo limit is reached? How long until I can return to EU waters?
3. Buy a US boat tax paid and keep US registration.
4. Can I own the boat for the first 18 months to capture additional depreciation before VAT is paid?


Thanks in advance

MCL

[goboatingnow]

Option 2 is most cost effective as Albania and or turkey are nearby.

There is no minimum time out of the EU to reset the 18 month vat clock. Jus5 get proof the vessel was out of the Eu. Overnight receipt in a marina etc.

Should your residency status change you can indeed activate option 4 by agreeing a financial valuation with customs and paying the resultant vat.

[MyCatLife]

Thanks for the reply. That is very helpful.

[goboatingnow]

Originally Posted by MyCatLife

Thanks for the reply. That is very helpful.

Once you don’t become tax resident in Europe the 18 month temporary import permission way of avoiding vat is simple. There’s no application for it you are simply entitled to it.

Be aware in Greece with that status you will need a transit log and also pay the monthly cruising tax ( €8 per metre per month ) technically you need to clear in and out of the Schengen area. But that’s nothing to do with vat.

[goboatingnow]

Also two things to be aware of in Greece

For a non EU boat a transit log is issued at the Greek entry port costs 30 euro and is valid for 18 months cruising in Greece , its used to track your vat compliance

As of June 2022 new rules require the log to be stamped at every port you visit in Greece. This can be problematic as port police are hard to find. Enforecement is haphazard, but fines are large. It’s generating a lot of annoyance amongst non Eu registered boats.

Note be careful when getting the transit log. Do not proffer any EU citizen claim as the issuing port police will then only Issue a 1 month transit log

The requirements for transit logs are being discussed and may change in 2023

Note if you buy the vat free yacht in the Eu , ensure the yacht is not on a TiP or has overrun it’s TIP time

The usual source of vat free is charter yachts.

[MyCatLife]

Thanks again very helpful.

[goboatingnow]

Originally Posted by MyCatLife

Thanks again very helpful.

No problem. PM me if you need any specifics.