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Boat Tax in Italy for Foreign Owned Yachts

 
 
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Old 12-10-2011, 05:22 AM   #1 (permalink)
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Boat Tax in Italy for Foreign Owned Yachts

Anyone proposing to keep keep or use a yacht in Italy should be aware of the new "Austerity Measures" boat tax the Italian Government recently announced: as of May 2013 a tax will be levied on all foreign owned motor and sailing yachts that are based in, or even just entering and temporarily within, Italian waters.

The rates announced are as follows:
10-12m : 7 euros per day
12-14m : 12 euros per day
14-17m : 40 euros per day
17-24m : 75 euros per day
>24m :150 euros per day

There may be a 50% reduction for sailing yachts

If these taxes are implemented, in all likelihood it wont be long before all the neighboring EU and other Mediterranean countries implement a similar tax.
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Old 12-10-2011, 06:23 AM   #2 (permalink)
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If this will be for real, the Italian economy will suffer even more...
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Old 12-10-2011, 06:51 AM   #3 (permalink)
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>24m :150 euros per day
That looks very reasonable, even under-priced. That's what the average superyacht pays out for an "illegal day-worker" for 8 hours labour to help out the crew in ports here in Europe preparing for the arrival of the owner / charterer. I don't see how any superyacht owners would refuse to pay such a small sum in return for the freedom of cruising Italy's long and beautiful coastline and territorial waters. At least, it will somehow compensate the Italian ports and coastal towns for the costs of disposing of all the rubbish these yachts deliver ashore via their tenders every morning and into the bins provided. Just because the yacht's chef buys a few kilos of fresh vegetables in the local market every few days doesn't really compensate...
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Old 12-10-2011, 07:04 AM   #4 (permalink)
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Originally Posted by airship View Post
I don't see how any superyacht owners would refuse to pay such a small sum...
I can see quite a few foreigned flagged vessels leaving the Italian ports if the annual cost goes up with 54.750 €. But the hassle of paying per day for cruising their waters will probably upset more than the actual cost.
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Old 12-10-2011, 07:18 AM   #5 (permalink)
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Given the ecconomic crisis it seems entirely in line with the other austerity measures being put in place, except that it's one tax that won't bring protestors into the street. I could definitely see that spreading along the Med coast. As for any argument that it's short-sighted, short term is all that's important right now. Plus, once it spreads, what choice do the yachts have but to pay it?
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Old 12-10-2011, 08:17 AM   #6 (permalink)
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That looks very reasonable, even under-priced. That's what the average superyacht pays out for an "illegal day-worker" for 8 hours labour to help out the crew in ports here in Europe preparing for the arrival of the owner / charterer. I don't see how any superyacht owners would refuse to pay such a small sum in return for the freedom of cruising Italy's long and beautiful coastline and territorial waters. At least, it will somehow compensate the Italian ports and coastal towns for the costs of disposing of all the rubbish these yachts deliver ashore via their tenders every morning and into the bins provided. Just because the yacht's chef buys a few kilos of fresh vegetables in the local market every few days doesn't really compensate...
"very reasonable, even under-priced"? with respect, what planet are you on? We're not talking just about super-yachts and their owners or charterers? There are thousands of average families who own boats of between 14-17m who work very hard to enjoy their Mediterranean boating. The new tax will cost them an 40 euros per day - that may seem "reasonable" to you but it will, I suggest, l put Italy out of reach for many. Even worse is the situation for those of us who are lucky enough to own a larger boat ..my boat is 18m - biggish, perhaps, but far from a super-yacht - which will cost me 75 euros per day for every day spent in Italy... probably affordable for a 2 week holiday cruise but not if I want to be based in Italy 365 days a year, as I do and where I would contribute to the local economy through marina fees, fuel, technical and maintenance services, restaurants and flights etc ..
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Old 12-10-2011, 08:45 AM   #7 (permalink)
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Originally Posted by airship View Post
That looks very reasonable, even under-priced. That's what the average superyacht pays out for an "illegal day-worker" for 8 hours labour to help out the crew in ports here in Europe preparing for the arrival of the owner / charterer. I don't see how any superyacht owners would refuse to pay such a small sum in return for the freedom of cruising Italy's long and beautiful coastline and territorial waters. At least, it will somehow compensate the Italian ports and coastal towns for the costs of disposing of all the rubbish these yachts deliver ashore via their tenders every morning and into the bins provided. Just because the yacht's chef buys a few kilos of fresh vegetables in the local market every few days doesn't really compensate...
Are you crazy? All of that rubbish the yachts deliver ashore, most of it was purchased as new products in Italy before it became rubbish. 1 megayacht probably contributes $500,000 to the local economy during the med season. In addition to the chef buying groceries, you have the crew hitting all of the local bars, the guests going out to restaurants, the guests shopping and buying high dollar purses, shoes, jewelery, alcohol, taxi's, fuel, dockage at the marina. What the government gains in revenue from this tax, it will lose 3 times in lost taxes from the boats not going there and buying other goods. Maybe the mega-yachts can afford it, BUT there are a lot of families with smaller boats that simply cannot afford it and will not afford it. Fuel is already taxed ridiculously there.

I know of a lot of people that completely stopped going to Bimini, Bahamas from South Florida when they raised the customs fee from $100 to $300. It's 50 miles from South Florida and a lot of people used to go over for a 3 day weekend or so, and when they included fuel, dockage , and now the extra customs fee it pissed them off and they go to the FL keys instead.

The problem with governments and tax is. The more they tax, the more money they waste, and the people see no additional benefits derived from paying more tax. It's diminishing returns.
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Old 12-10-2011, 08:48 AM   #8 (permalink)
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Originally Posted by david_japp View Post
"very reasonable, even under-priced"? with respect, what planet are you on? We're not talking just about super-yachts and their owners or charterers? There are thousands of average families who own boats of between 14-17m who work very hard to enjoy their Mediterranean boating. The new tax will cost them an 40 euros per day - that may seem "reasonable" to you but it will, I suggest, l put Italy out of reach for many. Even worse is the situation for those of us who are lucky enough to own a larger boat ..my boat is 18m - biggish, perhaps, but far from a super-yacht - which will cost me 75 euros per day for every day spent in Italy... probably affordable for a 2 week holiday cruise but not if I want to be based in Italy 365 days a year, as I do and where I would contribute to the local economy through marina fees, fuel, technical and maintenance services, restaurants and flights etc ..
Well put.
One needs to look no further than the fair State of Florida to recognize the economic ramifications of taxes and the lessening thereof.
Over time, the requirement to depart the state without paying a sales tax on a newly purchased boat grew from 10 days to 90 and to 180 currently. This was due to the FACT that the longer these boats remained in state waters, the more money was spent, and we're talking billions of USD, folks, all documented.
The thing, also, about the so-called "rich" people? They don't like being screwed with and they understand Lar's and David Japp's thinking.
They might just vote with their pocketbooks and leave a poorer Italy behind.
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Old 12-10-2011, 09:09 AM   #9 (permalink)
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Originally Posted by david_japp View Post
There may be a 50% reduction for sailing yachts
Hi,

... with additional discounts available to those who pay cash and do not want an official receipt - a knock off lookalike will be provided.
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Old 12-10-2011, 09:43 AM   #10 (permalink)
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" as of May 2013 a tax will be levied on all foreign owned motor and sailing yachts that are based in, or even just entering and temporarily within, Italian waters."

I d like to see the actual proposal since I m always weary of Internet rumors.

For boats that are based in italy, this would not surprise me since good ole europe (and the US nowadays) has a long history of over taxing just about everything seen as close to luxurious...

But if they are going to impose such a tax on visiting boats, they are going to suffer some serious consequences with boats spending less time in their waters and more time elsewhere

As captain J mentioned, anybody who has been to bimini in the past 5 years has witnessed the effect of over taxing

The problem with socialists (whether in Europe for 30 years or the US for the past 3) is that they fail to realize the problem is with spending and not revenue...
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Old 12-10-2011, 09:51 AM   #11 (permalink)
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They might just vote with their pocketbooks and leave a poorer Italy behind.
Sounds just like what the UK PM David Cameron just did, believing that he might have even 1 or 2 of EU countries standing behind him. As it turns out, all 17 Eurozone contries (those that have already adopted the Euro) plus the remaining 10 EU countries who've basically committed their countries to at some stage adopting the Euro today support the latest plans.

The UK, like the free-wheeling, tax-avoiding superyacht owner are now in some form of quandary. The UK, together with the USA have had in common a distaste for the Euro which dates back many years and unless I'm much mistaken, have together used their combined resources to undermine the Euro in recent times. That strategy is now back-firing with at least initially, very serious consequences to the UK's economy, soon to become apparent over the next few months. Today, 10th December 2011, the UK has finally been exposed. And alone amongst the other EU 27, fighting its' battles to safeguard the financial centre of London, but also assuring that all the UK's offshore tax-havens are maintained for the benefit of a few.

For several decades now, the UK has been a thorn in the sides of other EU countries. The UK has always considered EU membership as simply a means to arrest other European countries from going forward together, as that would undermine her own and ultimately the USA's national interests. Perhaps, and finally, the EU countries worthy of the name will be able to proceed, having shrugged off the worst efforts that some nations already mentioned above imposed on other more defenceless nations in various forms.

What should this mean for yachts (foreign-flagged, outside of the EU)? If they're commercial yachts, earning revenues from their presence in EU waters, then they should be taxed on this income and VAT (sales taxes) applied. Yachts registered for VAT in any of the UK's multiple offshore tax-havens (especially I.O.M.) should be immediately "arrested and chained" if found to be within any EU port. and subjected to in-depth investigations concerning their activities. Whether or not VAT is ever accounted for in reality: "I.O.M. companies can register for VAT under UK provisions, yet I.O.M. companies apparently never have to publish their accounts etc."

Frankly, I'm under the impression that there is today a whole yachting "sub-industry and culture" composed of so-called financial specialists etc. which has successfully terrorised most yacht owners. In other words, yacht owners are today advised to jump through countless "hoops and throughs" to avoid paying the VAT (sales tax) as applied by most EU countries. The yacht owners pay a small fortune to these advisors, yet have no guarantee that what is proposed is completely legal, or at least might be legal after a lengthy and prolonged legal battle with the tax authorities when it comes to that.

david_japp wrote:
Quote:
"very reasonable, even under-priced"? with respect, what planet are you on? We're not talking just about super-yachts and their owners or charterers? There are thousands of average families who own boats of between 14-17m who work very hard to enjoy their Mediterranean boating. The new tax will cost them an 40 euros per day - that may seem "reasonable" to you but it will, I suggest, l put Italy out of reach for many. Even worse is the situation for those of us who are lucky enough to own a larger boat ..my boat is 18m - biggish, perhaps, but far from a super-yacht - which will cost me 75 euros per day for every day spent in Italy... probably affordable for a 2 week holiday cruise but not if I want to be based in Italy 365 days a year, as I do and where I would contribute to the local economy through marina fees, fuel, technical and maintenance services, restaurants and flights etc ..
Perhaps you should ask the IRS if they might be able to help you out (assuming that you're a US taxpayer and have previously declared that you own such a modest sailboat etc.)
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Old 12-10-2011, 10:38 AM   #12 (permalink)
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Originally Posted by airship View Post
Sounds just like what the UK PM David Cameron just did, believing that he might have even 1 or 2 of EU countries standing behind him. As it turns out, all 17 Eurozone contries (those that have already adopted the Euro) plus the remaining 10 EU countries who've basically committed their countries to at some stage adopting the Euro today support the latest plans.

The UK, like the free-wheeling, tax-avoiding superyacht owner are now in some form of quandary. The UK, together with the USA have had in common a distaste for the Euro which dates back many years and unless I'm much mistaken, have together used their combined resources to undermine the Euro in recent times. That strategy is now back-firing with at least initially, very serious consequences to the UK's economy, soon to become apparent over the next few months. Today, 10th December 2011, the UK has finally been exposed. And alone amongst the other EU 27, fighting its' battles to safeguard the financial centre of London, but also assuring that all the UK's offshore tax-havens are maintained for the benefit of a few.

For several decades now, the UK has been a thorn in the sides of other EU countries. The UK has always considered EU membership as simply a means to arrest other European countries from going forward together, as that would undermine her own and ultimately the USA's national interests. Perhaps, and finally, the EU countries worthy of the name will be able to proceed, having shrugged off the worst efforts that some nations already mentioned above imposed on other more defenceless nations in various forms.

What should this mean for yachts (foreign-flagged, outside of the EU)? If they're commercial yachts, earning revenues from their presence in EU waters, then they should be taxed on this income and VAT (sales taxes) applied. Yachts registered for VAT in any of the UK's multiple offshore tax-havens (especially I.O.M.) should be immediately "arrested and chained" if found to be within any EU port. and subjected to in-depth investigations concerning their activities. Whether or not VAT is ever accounted for in reality: "I.O.M. companies can register for VAT under UK provisions, yet I.O.M. companies apparently never have to publish their accounts etc."

Frankly, I'm under the impression that there is today a whole yachting "sub-industry and culture" composed of so-called financial specialists etc. which has successfully terrorised most yacht owners. In other words, yacht owners are today advised to jump through countless "hoops and throughs" to avoid paying the VAT (sales tax) as applied by most EU countries. The yacht owners pay a small fortune to these advisors, yet have no guarantee that what is proposed is completely legal, or at least might be legal after a lengthy and prolonged legal battle with the tax authorities when it comes to that.

david_japp wrote: Perhaps you should ask the IRS if they might be able to help you out (assuming that you're a US taxpayer and have previously declared that you own such a modest sailboat etc.)
Ah! Airship's real beef with the world is now revealed through his politicized and ill-informed rant. And to correct him on a couple of points of detail, I am a UK resident and tax payer and my 18mt boat is a vintage motorboat that I've restored over many years and paid for with my hard earned and tax paid income.
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Old 12-10-2011, 12:00 PM   #13 (permalink)
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Hi,

Talk about biting the hand that feeds it, I guess the Pastis or Scotch you seem to imbibe in so frequently must have had a real pasting today.

How often have we seen you here stating how you have been in the business for years and how it has changed, how thick and stupid the crews are today for using the internet to find things and then asking you or your company to supply it, how wonderful a certain brand of paint is, how Antibes has gone downhill with the popularity or yachting ..... the list is quite long.

Quote:
Originally Posted by airship View Post
Sounds just like what the UK PM David Cameron just did, believing that he might have even 1 or 2 of EU countries standing behind him. As it turns out, all 17 Eurozone contries (those that have already adopted the Euro) plus the remaining 10 EU countries who've basically committed their countries to at some stage adopting the Euro today support the latest plans.
The UK is the only one of the 27 who has not sold their soul on the Euro so what choice did he have?

Quote:
Originally Posted by airship;
The UK, like the free-wheeling, tax-avoiding superyacht owner are now in some form of quandary.
Just as you and your company will be when Owners say enough is enough and stay away.


Quote:
Originally Posted by airship;
The UK, together with the USA have had in common a distaste for the Euro which dates back many years and unless I'm much mistaken, have together used their combined resources to undermine the Euro in recent times.
A bit of currency trading between selling litres of Bilgekote perhaps? You might be interested to know that one of those supposedly responsible for giving the £ such a hiding that the UK stayed out of the Euro is a large yacht Owner - his vessels are privately registered so he pays tax on everything fuel, food, supplies etc.


Quote:
Originally Posted by airship;
.....also assuring that all the UK's offshore tax-havens are maintained for the benefit of a few.
...of the yacht Owners who have sent business your way over the years perhaps?

Quote:
Originally Posted by airship;
Perhaps, and finally, the EU countries worthy of the name will be able to proceed, having shrugged off the worst efforts that some nations already mentioned above imposed on other more defenceless nations in various forms.
I think that you have omitted to mention the countries collectively known by the unfortunate abbreviation of P.I.G.S. - Oh heck aren't they already members of the EU and use the Euro? What happened there or can the blame for their ineptitude and corruption be laid at the UK and USA's feet by a few more drams of your favourite tipple.



Quote:
Originally Posted by airship;
What should this mean for yachts (foreign-flagged, outside of the EU)? If they're commercial yachts, earning revenues from their presence in EU waters, then they should be taxed on this income and VAT (sales taxes) applied.
About the sanest thing you have ever written.


Quote:
Originally Posted by airship;
Yachts registered for VAT in any of the UK's multiple offshore tax-havens (especially I.O.M.) should be immediately "arrested and chained" if found to be within any EU port. and subjected to in-depth investigations concerning their activities. Whether or not VAT is ever accounted for in reality: "I.O.M. companies can register for VAT under UK provisions, yet I.O.M. companies apparently never have to publish their accounts etc."
There it goes again, savaging the hand that feeds you.

Quote:
Originally Posted by airship;
Frankly, I'm under the impression that there is today a whole yachting "sub-industry and culture" composed of so-called financial specialists etc. which has successfully terrorised most yacht owners.
You shouldn't just limit your rant to the such a select number, what about the management co's, brokers, incompetent surveyors ( often the three are closely associated behind the scenes)who have all jumped on the cash cow and in some cases have made it so unwelcome and financially damaging for an Owner that they have sold their dream vessel and are no longer a part of that fraternity.

That was great now I am ready to have my dinner.
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Old 12-10-2011, 12:19 PM   #14 (permalink)
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I couldn't agree more. Bon Appetit!
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Old 12-10-2011, 01:43 PM   #15 (permalink)
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In doing an internet search I found this on another forum. However, I could not find any official confirmation of it. Italy is well known for having a multitude of taxes and this would not surprise me, nor would it surprise me to see other med-countries following suit...if it is real Could also be just a rumor started by another country trying to pull business their way:
Quote:
courtosy of the British Cruising Association:
"The newly appointed Italian government has presented parliament with
a set of austerity measures to save the Italian economy. As it stands,
boat owners / users (including foreign visiting yachts) will be
subjected to a daily tax for the duration of their stay within italian
waters. This will come into effect on the 1st May 2012 and the
proposed tax per day is as follows:

a) euro 5 - from 10,01m to 12m;

b) euro 8 - 12,01m to 14m;

c) euro 10 - 14,01m to 17m;

d) euro 30 - 17,01m to 24m;

e) euro 90 - 24,01 to 34m;

f) euro 207 - 34,01m to 44m;

g) euro 372 - 44,01m to 54m;

h) euro 521 - 54,01m to 64m;

I) euro 703 - above 64m.

The above measurements are intended as overall length in accordance
with EN/ISO/DIS 8666 Small Craft Principal Data.

The above daily tax rates will be reduced by 50% for all sailing
yachts with an auxiliary engine. It is however still unclear whether
this reduction will be restricted to sailing yachts between 10 and 12m
or whether the 50% reduction will apply to any sailing yacht of any
length..

Further reductions of the above rates will be applied to all yachts in
accordance with the age of the yacht calculated with effect from the
1st january subsequent to the year of manufacture. The reductions are
as follows:

- 5 years and over - 15%;
- 10 years and over - 30%;
- 15 years and over - 40%.

All yachts undergoing yard maintenance will not be liable to pay tax
for the duration of works.

The penalty for late, partial or non payment of the tax will be a
charge between 200 and 300 % over and above the amount of tax evaded."

Latest news received indicates the age reduction has been scrapped.
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