Q&A: Buying a Yacht in Greece

Owning a yacht in Greece sounds like a Mediterranean dream yet turning that dream into reality involves a set of legal, tax, and administrative decisions that require careful handling. This guide lays out the essentials for everyone considering purchasing a yacht in Greece – from role of solicitor, registration and VAT to flag choice and local rules.

    I.         What is the process for purchasing a Greek vessel?

The process of acquiring and registering a Greek vessel involves a series of coordinated legal, administrative, and tax-related procedures. The main stages are outlined below:

• Pre-Purchase Due Diligence
• Execution of the Sale and Payment of VAT (If Applicable)
• Obtaining a Greek Tax Identification Number (AFM)
• Registration and Flagging of the Yacht

  II.         What are the advantages of registering a yacht under the Greek flag?

The flag state under which a yacht is registered is not a mere formality; it determines the legal and regulatory regime that governs the vessel’s operation, inspection, taxation, crewing, safety standards, and even its international treatment in foreign ports. This principle means that the flag state exercises jurisdiction and control over the vessel, even when it is outside national waters.

For many non-Greek nationals, choosing to flag a yacht under Greek jurisdiction offers a combination of legal transparency, European Union compliance, and practical convenience.

In detail, registration under the Greek flag offers advantages including:

• Full compliance with EU maritime and VAT regulations – which can be decisive in retaining higher resale value or in obtaining financing
• Unrestricted navigation within the Schengen zone – a crucial benefit for owners who intend to cruise between EU member states
• Eligibility for VAT exemptions under certain commercial leasing or chartering structures
• Clear framework for safety inspections and manning requirements, consistent with international standards
• Simplified annual taxation regime

III.         New vs Pre-owned yacht – are there any legal distinctions?

The Greek market presents a broad spectrum of options in both newly constructed and pre-owned recreational vessels. The legal and technical framework applicable to the acquisition process varies significantly depending on whether the yacht is acquired directly from a shipyard or transferred through a secondary sale.

In the case of new-build acquisitions, particular attention must be given to the verification of the Builder’s Certificate, the vessel’s conformity with applicable EU safety and construction standards, and the documentation confirming the VAT status of the vessel at the time of delivery.

For pre-owned yachts, the transaction involves a more layered review. Essential elements include confirmation of ownership history, identification of any maritime liens or encumbrances, verification of seaworthiness certifications, and assessment of the validity of existing flag registration. Special caution is warranted in transactions involving vessels previously registered under non-EU flags or operated commercially.

In both scenarios, it is strongly recommended that a condition survey be conducted by a qualified marine surveyor prior to final commitment. Such an inspection serves not only to identify potential technical defects but also to support the contractual allocation of risk between parties in the event of post-sale disputes.

IV.         Is it necessary to establish a Greek company?

In private use scenarios, ownership can remain with the individual, and the yacht may be registered in Greece. In such cases, the prospective owner must obtain a Greek tax identification number (AFM) and might be required to provide documentation proving lawful entry or residency status. For non-residents, these formalities are often handled via Power of Attorney.

However, when intending to register the yacht under the Greek commercial registry (for chartering purposes), the use of a Greek or EU-established company is often a prerequisite.

  V.         Can a yacht be chartered for a few days per year if it is registered for private use?

No. Greek and EU law make a strict distinction between private and commercial use. This distinction determines the applicable rules on registration, taxation, crew and operation, as well as inspection regimes.

• Private Use refers to a yacht used exclusively for personal purposes, by the owner or their invited guests, without any form of financial compensation. The vessel cannot be chartered, lent for consideration, or used to generate revenue in any form.
• Commercial Use involves the operation of the yacht as a business activity, typically through chartering (bareboat or crewed) or leasing. The yacht is made available to third parties in exchange for remuneration, even once per year.

If a yacht initially registered for private use is later intended for commercial exploitation – even on an occasional basis – it must undergo formal reclassification and re-registration as a commercial vessel. This includes compliance with safety regulations applicable to passenger vessels, a commercial registry entry, appropriate insurance and VAT arrangements.

Therefore, owners must carefully determine their intended use prior to acquisition and structure the ownership, registration, and compliance framework accordingly.

VI.         Why every buyer needs a Lawyer when buying a yacht in Greece

Purchasing a yacht in Greece – whether for private enjoyment or commercial use – is a complex transaction with legal, tax, and regulatory layers. Having a lawyer who specializes in yachting, maritime, and Greek tax law ensures that you avoid the common pitfalls foreign buyers face and complete the process correctly from day one.

Legal Due Diligence and Contractual Protection

• First and foremost, your lawyer will conduct thorough due diligence on the yacht’s title and encumbrances, including any existing mortgages, arrests, or debts. Many foreign clients are surprised to learn that without a proper deletion certificate from the previous flag registry and a clean title chain, they may face future claims, delays, or even legal disputes.
• Your lawyer will also draft or review the purchase agreement (such as the MYBA Memorandum of Agreement) and tailor it with Greek-specific clauses—covering VAT issues, delivery conditions, documentation requirements, and buyer protections. Proper legal drafting is not just a formality; it’s critical to safeguard your interests both at the point of sale and in future audits or inspections.

Tax, Compliance, and Ongoing Representation

• Another key role of your lawyer is to design a custom tax and customs strategy. For example, if the yacht is not EU VAT-paid, your lawyer will help determine whether to opt for Temporary Admission or permanent importation. Making the wrong choice can lead to unexpected VAT liabilities or fines down the line.
• In addition, your lawyer will handle all interactions with Greek state platforms and registries, such as the e-TEPAI cruising tax, the online Transit Log, and the Greek register for private or professional vessels. These systems can be confusing even for experienced yacht owners, and a misstep – like failing to pay TEPAI on time – can result in fines or restrictions on navigation.
• Lastly, a qualified lawyer serves as your trusted guide and local representative, coordinating surveyors and flag registry agents, liaising with customs and port authorities, advising on insurance requirements, and (where needed) forming a NEPA company for commercial operations. They help turn a bureaucratic process into a smooth, secure acquisition.

In short, this is not just about “handling the paperwork.” It’s about protecting your investment and ensuring that your yacht is legally compliant, tax-efficient, and ready to sail – without surprises.

VII.        How we can assist you

Over the years, our firm has developed an in-depth understanding of the Greek legal, tax, and regulatory framework that governs yacht ownership and operation. What sets us apart is our ability to bridge local legal knowledge with the expectations of international yacht buyers, ensuring every step of the process runs seamlessly and securely.

Our services include:

• Comprehensive legal due diligence– verifying ownership history, deletion from prior registries, liens, encumbrances, mortgages, and clear title.
• Contract drafting and negotiation– tailoring MOAs and sale agreements with Greek-specific clauses on VAT, delivery, and buyer protections.
• Flagging and registration– guiding clients through Greek and EU registration procedures, including reclassification for private or commercial use.
• Regulatory compliance– handling TEPAI cruising tax, Transit Logs, manning and safety standards, and ongoing regulatory obligations.
• Coordination and representation– liaising with surveyors, insurers, port and customs authorities, and setting up Greek/EU companies where required.

Through this integrated approach, DS Legal transforms a complex, highly regulated process into a smooth and secure acquisition, allowing clients to focus on the enjoyment and operation of their yacht.

Download the full document here: Q&A Buying a Yacht in Greece