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Croatia lets smaller vessels charter

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Beginning May 1, charter rules in Croatia will change, allowing vessels smaller than 40m to charter and charging VAT on all charters while in Croatian waters.

According to the European Committee for Professional Yachting (ECPY), Croatian charter regulations currently state:

  1. Non-EU-flagged yachts under 40m are not allowed to charter;
  2. Non-EU-flagged yachts over 40m are required to purchase a charter license; and
  3. No VAT on charter fees is due in Croatia if the charter starts outside the EU. Charters starting in Croatia must pay 13 percent VAT.

Beginning May 1, the Croatian government will implement the following changes for the 2017 season:

1.Non-EU-flagged commercial yachts under 40m will be allowed to charter;

  1. All non-EU-flagged commercial yachts will be required to purchase a charter license, even if charters start outside Croatia in another EU or non-EU country; and
  2. If a charter starts outside the EU, 13 percent VAT on charter fees will be due in Croatia for the time spent in Croatian waters.

Such a move would align Croatia with other EU Member States’ implementation of a common regulatory framework across the EU.

According to agents SOS Yachting Croatia, the Ministry of Maritime Affairs issues a limited number of licenses every year and demand is expected to be high. Licenses can be purchased through a licensed ship agent and are valid for the entire calendar year.

For more information, visit www.ecpy.org or www.sosyachting.com.

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