Are you thinking of purchasing a yacht in Greece? You can find some great bargains, especially towards the end of yacht charter season. There are also pitfalls that you should be aware of.
Most of the Greek yachts that are listed by brokers were previously charter yachts. These yachts are also known as Greek Professional Yachts. Many people are afraid of them because they believe it is the same as buying a used car from a rental firm. Charter yachts do not all have a bad reputation or are poorly maintained. Read more now on yacht broker mallorca
Many of the yachts used for professional purposes in Greece are actually owned by private individuals, rather than yacht rental companies. Owners rent them out to take advantage of tax benefits and VAT.
Owners will often charter their yacht for a minimum number of days to maintain professional status, and to cover annual maintenance and mooring costs.
You will notice a huge difference between yachts that are the same age. Some look ‘tired,’ while others appear to be years younger.
After you have found the yacht you wish to purchase, you should get it checked by a professional. Unscrupulous owners have been known to patch up major hull damages on a yacht and then resell it.
Your motto should be “Buyer Beware”.
Most insurance companies require a survey to protect you against buying a boat that has technical issues. A survey will cost between 500 and 1500 Euros.
The Greek Flag
99% of Greek yachts that are used for professional purposes have a Greek flag. If the boat has a flag from another country, the rules in that country apply. You will need to consult a broker if the boat is not Greek-flagged.
If you do not have a Greek passport or are not an E.U. If you are a Greek citizen residing in Greece, then the boat will be used for private purposes. If you own a yachting business in Greece, then you can keep the Greek flag.
It was once said that you should never pay the Greek price for any item, because he’ll always expect to negotiate…
It is true for boats. Negotiate the price down from what was initially asked for. You may have some ammunition in this area if you do a good survey, since few boats are defect-free.
The surveyor will be able tell you the “going rate” for the yacht type you are interested in.
Some brokers do not charge a set commission in Greece. They agree on a price that the owner will accept. Then they try to get the highest price possible from the buyer. The difference is their commission. They can add a lot to the “owner’s price” and leave plenty of room for negotiation.
Greek professional yachts have been bought with VAT exemption. You will be required to pay VAT on the current value of the yacht in addition to the purchase price if you are a national of E.U. If you are a national of the E.U., you must pay VAT on the yacht’s current value in addition to the price.
It is common to negotiate with the seller and reach deals where you only pay an extra 5%, and the seller pays the rest of the VAT.
If you engage in commercial activities that include yacht chartering, you may be exempt from paying VAT.
You will not be required to pay the outstanding VAT if you are not a citizen of the E.U. If you are not a citizen of the E.U. It takes several days to complete and costs around 600 Euro.
The Typical Purchase Procedure
After you have found the yacht of your choice, you will negotiate with the broker to reach an agreement. A yacht inventory should be provided to you so that you are aware of what’s included in the purchase.
A solicitor is needed to represent you in the sale. Your solicitor will ensure that the yacht is free of encumbrances and debts, and that ownership and titles are clearly defined.
The lawyer will draft an M.O.A. The Memorandum of Agreement (M.O.A.) will include all details of the deal, such as the terms, payment dates, and the boat itself. The Memorandum of Agreement should be subject to a survey. The M.O.A. Both the Buyer and Seller sign it.
A survey is arranged and you can then decide whether to agree on a price or re-negotiate. In some cases, it may be best to just walk away.