Introduction
Yacht law is a broad legal discipline covering issues such as the use, registration, taxation and navigation of watercraft in international waters. Turkey has an important place in the yachting sector with its geographical location, long coastline and tourism potential. Therefore, yacht law in Turkey is of great importance for both local and foreign yacht owners. Turkey’s development in the yachting sector not only contributes to economic growth, but also plays a critical role in terms of international relations and maritime security. In this article, we will discuss in detail the yacht flagging process in Turkey, taxation methods and yacht import and export.
How the Yacht Flagging Process Works in Turkey
Yacht flagging is a process that determines which country a yacht belongs to and shows that it complies with the legal and safety standards of that country. Flagging is a mandatory practice within the framework of international maritime rules and brings various rights and responsibilities to yacht owners. In order for a yacht to be flagged in Turkey, it is necessary to apply to the Ministry of Transport and Infrastructure. During this application process, various documents such as documents showing the technical specifications of the yacht, identity and residence documents and the yacht’s registration certificate are requested.
Application procedures are usually carried out through local harbour authorities and are carried out for a certain fee. During the yacht flagging process in Turkey, it is of great importance to check the compliance of the yacht with technical and safety standards. In this process, the yacht is inspected and the necessary documents are verified. These processes must be completed in full in order for the yacht to be registered and to be able to sail under the Turkish flag. In addition, the use of foreign flagged yachts in Turkey is also subject to certain rules. These yachts must obtain temporary entry and stay permits and fulfil the necessary insurance and tax obligations. Long-term stay of foreign flagged yachts in Turkey requires certain procedures and permits in accordance with Turkish legislation.
Yacht flagging is an important process that officially registers a yacht as belonging to a specific country and certifies its compliance with international maritime standards. This process brings certain rights and responsibilities to yacht owners. The yacht flagging process in Turkey is regulated and managed by the Ministry of Transport and Infrastructure. In this article, we will examine all the details of the yacht flagging process in Turkey step by step.
1. Application and Preparation of Documents
The first step of the yacht flagging process is to prepare the necessary documents and start the application procedures. The documents required for yacht flagging in Turkey are as follows
Boat Licence: It is the official document showing the yacht’s ownership certificate and technical specifications.
Sales Contract: Documents proving the purchase of the yacht and details of the sales transaction.
Identity and Residence Documents: Identity information and residence address of the yacht owner.
Insurance Policy: Document showing that the yacht is insured against risks that may occur during maritime activities.
Technical Conformity Documents: Certificates documenting the yacht’s technical specifications and compliance with safety standards.
After these documents are prepared, an application is made to the General Directorate of Maritime Affairs of the Ministry of Transport and Infrastructure. Application procedures are usually carried out through local harbour authorities and are subject to a fee.
2. Technical Inspection and Audit
Following the application process, the yacht is subjected to a technical inspection and audit. In this process, the yacht is checked for compliance with maritime standards and safety rules. The main criteria taken into consideration during the technical inspection are as follows
Dimensions and Capacity of the yacht: Length, width and carrying capacity of the yacht.
Engine Power and Performance: Engine power and performance of the yacht at sea.
Safety Equipment: Whether the yacht is equipped with safety equipment such as life jackets, fire extinguishers, lifeboats, etc.
Structural Condition and Maintenance: General structural condition and maintenance records of the yacht.
As a result of the technical inspection, it is decided whether the yacht is suitable for flagging. The inspection of the yacht is carried out by authorised inspection bodies or maritime experts and the cooperation of the yacht owner is required in this process.
3. Registration and Registration Procedures
Upon successful completion of the technical inspection, the yacht is officially registered and registered. These procedures include the issuance of a registration number certifying that the yacht belongs to the Republic of Turkey and recognising the right to fly the Turkish flag. During the registration process, a Registration Certificate is issued to the yacht owner. This document contains the yacht’s identification information and registration details. The information required for the issuance of the registration certificate is as follows:
Name and Registration Number of the yacht: The official name of the yacht and the registration number issued.
Ownership Information: Name, address and contact details of the yacht owner.
Technical Information: Yacht dimensions, engine power, year of production and other technical specifications.
4. Right to fly the Turkish Flag and Legal Obligations
After the yacht is officially registered, the yacht owner is granted the right to fly the Turkish flag. This right allows the yacht to sail under the Turkish flag in international waters and is subject to the maritime laws of the Republic of Turkey. Yachts flying the Turkish flag are subject to certain legal obligations. These obligations include the following:
Compliance with Maritime Legislation: Yacht owners must comply with Turkey’s maritime legislation and international maritime rules.
Payment of Taxes and Duties: Yacht owners are obliged to regularly pay taxes and fees related to the use and registration of the yacht.
Ensuring Safety Standards: The safety equipment and technical specifications of the yacht must be regularly checked and maintained.
5. Flag Change and Cancellation Procedures
Yacht owners may wish to change the yacht’s flag or cancel the registration in certain circumstances. Such transactions require certain procedures and documentation. The steps required for flag change or cancellation of registration are as follows:
Making an Application: Making an official application to the Ministry of Transport and Infrastructure.
Submission of Required Documents: Submitting the necessary documents for flag change or cancellation.
Payment of Taxes and Fees: Payment of relevant taxes and fees.
Audit and Approval: Approval of flag change or cancellation procedures by authorised audit institutions.
Yacht Taxation in Turkey
Yacht owners in Turkey are faced with various types of taxes. These include Value Added Tax (VAT), Special Consumption Tax (SCT) and Motor Vehicles Tax (MTV). While VAT is paid during the purchase of the yacht, SCT varies according to the type and characteristics of the yacht. Motor Vehicle Tax is paid annually and is calculated depending on the engine power and age of the yacht. VAT rates are generally applied as 18%, but different rates may apply in some special cases. SCT may be applied at high rates due to the yacht being considered as a luxury consumer good.
In addition, there are some exemptions and tax reductions under the Tourism Incentive Law. These exemptions are especially valid for yachts serving the tourism sector and are applied if certain conditions are fulfilled. For example, yachts used for tourism purposes may be exempt from SCT if they fulfil certain conditions. Tax declarations are usually submitted annually and payments are made on certain dates. It is of great importance for yacht owners to fulfil their tax obligations regularly in order to avoid legal problems. In addition, tax debts and other financial obligations that may arise during the use of yachts should also be regularly monitored.
Yacht taxation is an important financial obligation for yacht owners and requires the payment of various taxes and fees. In Turkey, yacht owners are subject to various types of taxes from the registration of their yachts to their use. In this section, we will discuss the details of the yacht taxation process in Turkey and the issues to be considered in this process.
Value Added Tax (VAT)
One of the most important taxes paid on the purchase of yachts in Turkey is Value Added Tax (VAT). The VAT rate is usually 18%, but in some cases reduced rates may apply. The calculation of VAT is based on the purchase price of the yacht. VAT is also due on the importation of a yacht, in which case VAT is calculated on the customs value of the yacht.
VAT on Sales Transactions: When the yacht is purchased, 18% VAT is applied on the sales price. If the yacht is purchased second hand, there may be a VAT exemption on the sale price, but this depends on the status of the seller and the buyer.
VAT on imports: For yachts imported from abroad, VAT is calculated on the customs value of the yacht and paid during the import process. Customs value is determined based on the CIF (Cost, Insurance, Freight) value of the yacht.
Special Consumption Tax (SCT)
Special Consumption Tax (SCT) is a tax applied due to the fact that yachts are considered as luxury goods. SCT rates vary according to the size, engine power and other technical specifications of the yacht. The SCT rates applied to yachts in Turkey are generally high and can vary between 8% and 160%.
SCT according to yacht size and engine power: SCT rates are determined according to the size and engine power of the yacht. Higher SCT rates are applied for yachts with large and high engine power.
SCT on Luxury Yachts: Luxury yachts are subject to high SCT rates. The SCT rate for these yachts can be up to 160%.
Motor Vehicles Tax (MTV)
Motor Vehicles Tax (MTV) is a tax paid annually for all motor vehicles registered in Turkey. Yachts are not exempt from this tax and MTV rates are calculated according to the engine power and age of the yacht.
MTV Rates: MTV is determined according to the yacht’s engine power (in horsepower or kilowatts) and age. MTV rates are higher for yachts with new and high engine power.
Annual MTV Payment: MTV is paid annually in two instalments. The first instalment is paid in January and the second instalment is paid in July.
Exceptions and Exemptions
In Turkey, some yachts may be exempt from taxes or benefit from reduced tax rates under certain conditions. These exemptions and discounts generally apply to yachts serving the tourism sector.
Tourism Incentive Law: Yachts used for tourism purposes may be exempt from SCT if they meet certain conditions. This exemption is applied provided that the yacht serves in the tourism sector for a certain period of time and the necessary documents are submitted.
Temporary Import Exemption: Foreign flagged yachts can be exempted from taxes for a certain period of time when they enter Turkey temporarily. This period is usually 2 years and can be extended provided that the necessary permits are obtained.
Tax Declarations and Payment Processes
Yacht owners must fulfil their tax obligations regularly. Tax returns are usually submitted annually and payments are made on specific dates. The issues to be considered during tax declarations and payments are as follows:
VAT Declaration: VAT is paid on the date of purchase of the yacht and this payment is stated in the tax return.
Excise Tax Declaration: SCT is paid on the date the yacht is purchased or imported and this payment is stated in the tax return.
MTV Declaration and Payment: MTV is paid annually and the tax return is filed in January and July. Payments can be made through the website of the Revenue Administration or to tax offices.
Yacht Import and Export in Turkey
Yacht import refers to the process of bringing the yacht from abroad to Turkey and various documents must be provided in this process. In addition to the yacht’s invoice and customs declaration, technical documents and certificates of the boat are also requested during the import procedures. Customs clearance requires the payment of certain taxes and fees, and in some cases customs exemptions and exceptions may apply. The process of importing a yacht in Turkey involves a detailed and complex set of procedures. Yacht importers are required to be familiar with the relevant customs legislation and to obtain the necessary documentation in full. Import procedures are usually carried out through professional customs brokers.
After importation, the yacht must be registered and registered. These procedures are necessary for the yacht to be used legally in Turkey. The registration of the yacht is carried out by the relevant units of the Ministry of Transport and Infrastructure. Yacht export, on the other hand, refers to the sale of yachts from Turkey to abroad and various documents are required in this process. Documents such as export declaration, sales and transfer agreements must be prepared and the necessary taxes and fees must be paid. Insurance requirements should also be taken into consideration during the export of the yacht. Yacht exports in Turkey have a great potential, especially in terms of offering high quality and luxury yachts to the world market. Compliance with international trade and maritime legislation is critical for successful exports.
It will further strengthen Turkey’s position in this sector. The development of the yachting sector in Turkey offers attractive opportunities not only for domestic investors but also for foreign investors and yacht owners. In this context, effective and fair implementation of yacht law will contribute to the sustainable growth of the sector.
Yacht import and export involves complex and detailed processes in terms of both legal regulations and practical procedures. In Turkey, yacht imports and exports are regulated under various customs legislation and international trade rules. In this section, we will discuss all stages of the yacht import and export processes and the issues to be considered.
Yacht Import Process
Customs Transactions
Those wishing to import yachts to Turkey are required to follow certain procedures through the customs administrations under the Ministry of Customs and Trade. The main steps of the import process are as follows:
- Customs Declaration: When initiating the import process, a customs declaration must be filled out, which includes all the details of the yacht. In this declaration, the type, dimensions, engine power, year of manufacture and other technical specifications of the yacht should be specified.
- Customs Duty and Other Duties: Customs duty, Value Added Tax (VAT), and Special Consumption Tax (SCT) must be paid for the imported yacht. The customs duty rate may vary depending on the yacht’s country of origin and trade agreements with Turkey. The VAT rate is usually 18%, but may vary depending on the type of yacht. Excise duty rates can vary from 8% to 160% depending on the size and engine power of the yacht.
- Customs Inspection: After the customs declaration is filed and taxes are paid, a physical inspection of the yacht is carried out. In this inspection, the accuracy of the information specified in the declaration and the technical suitability of the yacht are checked.
- Customs Exit Permit: Upon completion of the inspections, the yacht is allowed to enter Turkey by the customs administration and the yacht owner is issued a customs exit permit.
Taxation
The main taxes to be paid for imported yachts are as follows:
Customs Duty: Varies according to the country of origin of the yacht. Customs duty exemption may be applied for yachts imported from EU countries.
VAT: Generally applied at a rate of 18% and calculated on the customs value of the yacht.
SCT: Depending on the size of the yacht and engine power, it varies between 8% and 160%.
Technical Standards and Certification
Imported yachts must comply with Turkish maritime standards and international maritime rules. For this reason, it is mandatory to submit certificates of conformity such as the CE certificate of the yacht. In addition, technical inspections and inspections of the yacht must be carried out.
Those wishing to export yachts from Turkey to abroad must follow certain customs procedures. The main steps of the export process are as follows:
- Customs Declaration: When starting the export process, a customs declaration must be filled out, which includes all the details of the yacht. In this declaration, the type, dimensions, engine power, year of manufacture and other technical specifications of the yacht must be specified.
- Customs Inspection: After the customs declaration is filed, a physical inspection of the yacht is carried out. In this inspection, the accuracy of the information specified in the declaration and the technical suitability of the yacht are checked.
- Customs Exit Permit: Upon completion of the inspections, the export of the yacht is authorised by the customs administration and the yacht owner is issued a customs exit permit.
Tax Refund
During the export of a yacht, it is possible to refund the VAT previously paid. The exporter must apply to the relevant tax office for VAT refund. In this application, the export declaration and other relevant documents must be submitted.
International Trade Rules
During yacht exports, international trade rules and the customs legislation of the importing country must be complied with. The main rules to be considered during export operations are as follows:
INCOTERMS Rules: In export transactions, INCOTERMS rules are used to determine the delivery method and responsibilities of the yacht. These rules clarify the responsibilities and costs of the seller and buyer.
International Maritime Rules: Rules and safety standards for the navigation of yachts in international waters must be taken into account during export transactions.
Why Us?
Yacht Law is a very comprehensive area of expertise and every yacht owner or operator needs professional legal support to ensure that their activities can continue smoothly within the legal framework. As Güneş & Güneş Law Office, we provide our clients with a reliable service for the safety of their yachts, legal compliance and continuity of their commercial activities with our expert support.
Getting professional legal support in legal processes is critical to protecting your rights and managing the process effectively. A lawyer secures your legal rights at every stage, from making the necessary applications within the framework of the relevant legislation to the follow-up of the process before the official authorities. In addition, technical and procedural procedures such as determining the victimisation, collecting evidence correctly and correspondence with the relevant parties can also be carried out effectively through lawyers.
Especially in sensitive matters such as violation of personal rights, privacy, commercial rights or protection of copyrights, timely interventions are of vital importance. In such legal cases, it is possible to manage the processes correctly, prevent loss of rights and develop the most appropriate strategies with the support of an expert lawyer.
Providing legal services with its expert staff, Güneş & Güneş Law Office offers effective and strategic solutions to its clients in a wide range of legal issues, especially in the digital world. We are ready to provide the support you need in legal matters such as protecting your individual rights or securing the assets of your business. With 25 years of experience, we are at your side to provide solutions to all your legal problems.
