Thinking
of buying a yacht in Greece? There are good bargains to be had here, especially
in the autumn at the end of the charter season. But there are pitfalls to be
aware of too.
The
majority of boats listed with brokers here are ex-charter yachts, known as Greek professional yachts. Some
people shy away from ex-charter yachts, believing it equivalent to buying a
second-hand vehicle from a car hire firm. While a single private owner may keep
a yacht in better condition, not all charter yachts are hammered or poorly
maintained.
In
fact, what most people don’t realise is that a lot of the professional yachts
in Greece are owned by individuals not by charter companies. The owners must
charter them out for a certain number of days each year in order to benefit
from VAT and other advantages given to professional yachts.
Often
the owner will charter for the minimum number of days to retain professional
status and to cover the annual mooring and maintenance costs of the yacht.
If
you are prepared to spend time looking around you’ll find a big difference in
the appearance of yachts of the same age, with some looking ‘tired’ from
heavy use while others seem years younger.
FINDING
A SUITABLE YACHT
A
search on the Internet will bring up numerous websites with yachts for sale in
Greece.
A
company that we have recently dealt with and found good are:
Network
Yacht brokers – Contact Contact
info@nyblefkas.com
THE
SURVEY
Having
found a yacht you want to buy I strongly recommend that you have it surveyed by
a professional surveyor. It is not unknown for a charter yacht to suffer major
hull damage, be patched up by an unscrupulous owner, and then offered for
resale with no mention of the damage.
“Buyer Beware” should
certainly be your motto.
If
you are not knowledgeable about boats a survey is essential.
A
survey will not only protect you from buying a boat with technical problems but
it is also required by most insurance companies.
Surveys
cost from 500 Euros. There can be major difference in price between surveyors
so check what they offer you and what comeback you have if they miss a major
defect!
GREEK
FLAG
99%
of Greek professional yachts are Greek-flagged.
If
the boat is flagged in another country then the rules of that country will
apply and you need advice from a qualified broker.
If
you are not a Greek citizen or an EU citizen resident in Greece you will need
to change flag if the boat is intended for private use.
You
can normally keep Greek flag if you intend to set up a charter business in this
country.
SALES
PRICE
We
were once advised never to pay a Greek the price he asks for anything, as he
will always expect you to bargain…
This
is certainly true when it comes to boats. You should be able to negotiate down
from the initial asking price. A good survey may give you ammunition for this,
as few used boats will be without any defects.
The
surveyor should be able to advise you what the ‘going rate’ is for the type of
yacht you are interested in.
We have
heard that some brokers in Greece do not work on a fixed commission basis. They
will agree a price with the owner that he/she will accept. They then try to
obtain as high a price as possible from the purchaser. Their commission is the
difference. The extra they add to the ‘owner’s price’ can be quite
considerable.
VAT
Greek
professional yachts will have been purchased VAT exempt. If you are an EU
national, you will be required to pay the VAT in addition to the purchase
price.
The
VAT rate in Greece is 23% but often you can negotiate with the Seller and it is
not unknown for deals to be reached where you pay only an additional 5% and the
Seller handles the payment of VAT.
You
may be exempted from payment of VAT if you are involved in commercial activity
that includes boat chartering.
If
you are a non E.U. Citizen you won’t need to pay the outstanding VAT, but you
will require the yacht to be custom cleared from the E.U. This takes several
days and costs about 800 Euro.
TYPICAL
PURCHASE PROCEDURE
Having
found a yacht, you negotiate a price with the broker and reach an agreement.
You should be supplied with an inventory for the yacht so you know exactly what
is included in the sale.
You
need a solicitor to act for you during the sale. Your solicitor will protect
you by ensuring that there are no encumbrances or debts on the yacht, and that
the ownership situation and titles are clear.
The solicitor
will prepare an M.O.A. (Memorandum of Agreement) stating all the details of the
transaction, including terms, dates and payments, and what comes with the boat.
This Memorandum should be conditional on a survey.
The
M.O.A. will be signed by both Buyer and Seller.
You
arrange a survey of the yacht and, on the basis of this, either agree the
price, re-negotiate, or in some cases the wisest action may be to walk away!
You
normally pay a deposit of 10-20% of the purchase price to your solicitor as
soon as possible in order to have a legally binding agreement. Your solicitor
will pay this to the seller after all the necessary documents have been handed
over to him.
You
must send the balance of the purchase price to the solicitor in time to comply
with the provisions negotiated when drafting the Memorandum of Agreement. The
solicitor will pay the full purchase price to the seller only after he has made
sure that all legal and tax requirements have been taken care of by the seller
and after all required documents have been handed over to him by the seller.
As
part of the sales process the yacht will be deleted from the Greek registry.
Upon deletion an official ownership certificate will be issued from the
Hellenic Registrar of Shipping. The certificate will confirm that the boat is
free from encumbrances and liens.
In
the meantime you can arrange registration for the boat in your country.
After
completion of all the paperwork you can take over your boat here in Greece or
you can arrange to have it delivered to wherever you intend to keep her.
HOW
LONG WILL IT TAKE?
When
we bought our boat the process seemed to take forever! Brokers we have spoken
to give around 5 weeks as the duration of the purchase process from signing of
the M.O.A. to deletion from the Greek Registry. However, I think these may be
Greek weeks and a little longer than elsewhere!
You
can only sail your yacht after a Bill of Sale has been issued and officially
signed by both Vendor and Buyer and the Deletion Certificate has been issued.
Buying a yacht is a fairly lengthy and bureaucratic process here in Greece but
many of the procedures are there to safeguard your interests and ensure the
yacht is free of debts or any other financial burdens.
Do
not be tempted to take any shortcuts or accept any bits of paper presented to
you by an eager seller supposedly to speed up the process!
If you need that Survey or any help at all contact me at the earliest at Yachtsurveysgreece.com
