Maritime Company for Pleasure Yachts
discover greece’s company type for pleasure yachts
About the M.C.P.Y.
A Maritime Company for Pleasure Yachts, known in Greece as NEPA (Ναυτική Εταιρεία Πλοίων Αναψυχής), is a specialized corporate structure designed specifically for owning and operating pleasure vessels under the Greek flag.
The NEPA structure offers substantial benefits for yacht owners. Greek-flagged yachts under NEPA ownership benefit from Greece’s extensive network of maritime agreements and the EU flag status, facilitating cruising throughout European and international waters. The structure provides limited liability protection, separating the yacht asset from the owner’s personal assets. Additionally, NEPA companies enjoy favorable tax treatment under Greek law, including exemptions from certain corporate taxes and VAT advantages for qualifying vessels and operations.
Operational Obligations
NEPA companies must fulfill ongoing obligations including maintaining proper corporate records and accounting books, filing annual financial statements, ensuring the vessel undergoes required inspections and surveys, maintaining valid insurance, and complying with Greek maritime regulations and international conventions. If the yacht is used for commercial charter, additional licensing and compliance requirements apply.
Taxation
One of the primary attractions of the NEPA structure is its favorable tax regime. Qualifying NEPA companies benefit from tonnage tax treatment, which calculates tax based on the vessel’s tonnage rather than actual income or profits, resulting in significantly lower tax obligations. There are also VAT considerations depending on where the yacht is used and whether it engages in charter activities, with specific rules governing VAT on yacht acquisitions, importation, and charter operations within and outside EU waters.
Charter Operations
NEPA companies can obtain licensing to operate their vessels for commercial charter purposes, providing an opportunity to generate income from the yacht. Charter operations require additional permits, compliance with specific safety and crew certification requirements, and adherence to tax and VAT rules applicable to commercial yacht operations. Professional management companies often assist NEPA owners in managing charter operations, crew employment, and regulatory compliance.
What It Is
A specialized Greek limited liability company created exclusively for owning and operating pleasure yachts under the Greek flag. It’s available to both Greek and foreign nationals and provides a professional corporate structure that separates the yacht asset from the owner’s personal assets.
Main Benefits
Tax advantages, VAT benefits and EU flag status for easier cruising in European waters, and the ability to operate the yacht commercially for charter purposes under appropriate licensing.
Requirements and Obligations
Establishing an M.C.P.Y. requires registering both the company with Greek commercial authorities and the vessel under the Greek flag. Owners must maintain proper corporate governance, submit annual financial statements, ensure the yacht meets safety standards and undergoes required inspections, and comply with Greek maritime regulations.
Frequently Asked Questions
Can the yacht be sold while keeping the company structure?
Yes, the yacht can be sold to a third party while maintaining the company structure intact. Alternatively, the company itself (along with the yacht) can be sold by transferring shares, which can be a tax-efficient method of transferring yacht ownership.
Can the yacht cruise outside Greek waters?
Yes, yachts registered under a Greek Maritime Company can cruise internationally without restrictions. The yacht will be subject to Greek flag regulations regardless of its location and will enjoy the protections and rights afforded to Greek-flagged vessels worldwide.
Can the company engage in other business activities?
M.C.P.Y’s are limited to activities related to yacht ownership and operation. They cannot engage in unrelated commercial activities without jeopardizing their special tax status.
What happens to the company if the owner passes away?
Like any company, Maritime Company shares can be transferred through inheritance according to applicable succession law. Proper estate planning, including provisions in the company’s articles of association, can facilitate smooth succession and continued operation of the company.
Contact us to schedule your complimentary introductory consultation.
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