Charter business can be performed by companies with commercially registered yachts whether they’re from the EU or not. However, when embarking in Croatia or transiting from a non-EU country to Croatia, all commercial yachts must apply for a charter license.
Licenses will be valid for one calendar year. It is useful to note that the number of licenses awarded by the Ministry of Maritime Affairs is dependent on the Croatian market supply at the time. Therefore, non-EU flagged yachts may be refused a license if there are too many yachts already chartering.
Exceptions:
- If your yacht is embarking passengers in another EU country, you do not need a charter license and will not be subject to Croatian VAT. However, it is possible in some cases that Customs Officers or Harbour Masters will requested proof that you have paid the VAT in the EU country of embarkation.
- If you do not possess a Croatian charter license, you are only eligible to sail in Croatian waters between international ports or to and from shipyards. You must only sail with crew on-board.
Obtaining a Croatian charter license is often regarded as a complicated and daunting task… but it doesn’t have to be. With our helpful guide on licensing and VAT, you’ll be prepared and ready to set sail with little fuss.
Charter License
Setting up your charter license, receiving your official Croatian VAT number, and appointing your fiscal representative can take approximately 2-3 weeks. It is therefore crucial to plan well ahead so that your trip runs smoothly.
The specific documents you are required to submit when applying for your charter license depends on the LOA and GRT of your yacht, meaning it is important to do your research early on.
We’ve prepared a handy guide listing all required documents, which you can view below.
VAT Number
Second to your charter license, you will need to obtain an official Croatian VAT number. For this, you will need to provide the following documents:
- A copy of your boat registry.
- Your company’s Certificate of Incorporation.
- A certificate issued by the tax administrator of the country you are registered to. This must confirm the taxpayer status of the yacht, regardless of whether you are paying tax or not.
- A notarized Power of Attorney letter addressed to your chosen fiscal representative in Croatia.
In all cases, your POA document must be the original and notarised version. All other documents will be accepted as high quality, scanned copies.They should be sent by trackable post- preferably DHL, Fedex, or UPS in order to avoid delays.
Furthermore, all documents must be translated to Croatian or English via legal interpretation. Additionally, every charter contract must also be sent off after it is translated by a legal interpreter.
It is worth noting that chartered yachts with guests sleeping on board overnight are subject to 13% VAT, whilst daily charters are subject to 25%.
Fiscal Representative
If you don’t want to open a Croatian company, but still want to operate your charter in Croatia, you will need to appoint a local company as your VAT and fiscal representative.
After you have sent off your documents and received your charter license, your representative will take responsibility for the rest of the required formalities. These include registering your guests and crew through a system named E-crew, paying tax, and providing the Ministry of Finance with a monthly and annual VAT declaration.
You will be informed of your tax calculation, which must be secured prior to the commencement of your charter. If your journey is beginning or ending in a non-EU country, charter tax is calculated on a pro-rata basis, determined by the number of days you plan to spend in Croatia.
For more assistance in obtaining your Croatian charter license, please get in touch with our expert team today.
