Charter mechanics
The VAT guide.
A country-by-country map of Mediterranean charter VAT, the reductions available, and how a competent flag-state lowers the bill.
The rates
- France: 10% on charters embarking in French waters
- Italy: 22% standard; reductions of 5–7% available with documented international-water time
- Spain: 21%
- Greece: 12%
- Croatia: 13% — the lowest in the Mediterranean
- Turkey: 0% for Turkish-flagged in Turkish waters
- Monaco: Charter VAT depends on the embarkation port (often legally Antibes or Cannes, attracting French VAT)
How reductions work
Most EU jurisdictions allow VAT reductions where the yacht spends a documented portion of charter time outside territorial waters (12nm offshore). Italy in particular has a tiered reduction down to 5–7% — the captain logs offshore time and the broker files the documentation.
The broker handles it
You don't need to know any of this beyond the headline rate. The broker invoices VAT separately on the contract; the captain logs the data; the reconciliation arrives with the APA settlement.