Will New Tax Impact Luxury Yacht Charter Market in Italy?

A new Italian yacht tax will assess a fee for each day a yacht is in service in Italian waters.

Signed into law on December 22, 2011, the new tax will go into effect on May 1, 2012.

The new tax as outlined in the decree is as follows:
►      5 Euro per day for vessels from 10.01 to 12 meters
►      8 Euro per day for vessels from 12.01 to 14 meters
►    10 Euro per day for vessels from 14.01 to 17 meters
►    30 Euro per day for vessels from 17.01 to 24 meters
►    90 Euro per day for vessels from 24.01 to 34 meters
► 207 Euro per day for vessels from 34.01 to 44 meters
► 372 Euro per day for vessels from 44.01 to 54 meters
► 521 Euro per day for vessels from 54.1 to 64 meters
► 703 Euro per day for vessels over 64 meters.

The new law lists several exceptions:

1. Vessels in dry dock or hauled out of the water are exempt from the daily fee.

2. For vessels older than 5, 10 or 15 years, the tax is reduced by 15%, 30% and 45% respectively.

3. All fees for sailing yachts are reduced by 50%.

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Thus, if you reserve the 60 meter Lursen yacht charter motor yacht ARKLEY for a week, you will incur a fee of € 3,647. Conversely, if you select a sail yacht for your holiday, such as 57 meter Royal Huisman’s sailing yacht TWIZZLE, you'll pay € 1,824.

Yacht charter maven Jana Sheeder believes a review of the new law is needed before it goes into effect.

"We fully support the efforts of the Italian government to bolster their sagging economy," says Sheeder. "What we have not seen, however, is a detailed analysis of the economic impact that the new tax will have on the Mediterranean yacht charter industry, and the impact on ancillary industries which support yachting such as marinas, fuel brokers, repair specialists, provisioning companies, and travel and tourism offices."

Continue to monitor this blog for additonal details as they unfold...

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To learn how you can reduce or even eliminate taxes associated with yachting vacations, contact SailAway at http://www.1800sailaway.com/contact_us.html today.