Issues with buying in Turkey?

[PatrickG]

Hi, I'm just about to close a sale on a used boat in Turkey. I'm an EU citizen, as is the seller, the boat is VAT-paid, and we are very conscious about issues around that, so that should be fine. But I am just wondering, before we close the deal, if there are any other tax or other purchase-related issues we should be aware of? The (Turkish) agent and the seller have both been clear that there are no other liabilities to us through buying in Turkey - but are there any unexpected taxes etc. that we should know about? Thanks in advance for any info!

Best,
Patrick

[beneteau-500]

I wouldnt have a glue if there would be any implications but one thought that comes to mine is the transit log the yacht entered Turkey under previous owner which he would of got the agent most likely to process all the yachts papers now how you go in getting new transit log I don't know but you will need vhf licence sailing Certs ie icc or asa104 or rya day skipper and insurance just check all those requirements

[MarkJ]

Perhaps the sale could be during a sail from turkey to greece?
He clears out on his papers, you clear in on yours.

[Sindbad]

How long has the boat been outside EU waters? If more than 3 years, then the current owner would be liable to pay tax, if he sails her into EU waters again. If the transaction takes place in Turkey and you as the new owner sail her into EU water you will be liable to pay tax, regardless VAT has been paid before or not.
Where will the boat be registered, in EU or Turkey?
The point is not whether you are EU citizen or not, the point is whether you are EU resident or not. Eg I am european citizien, but my residence is outside EU. Therefore I am not liable to pay VAT on my boat, which is registered in Malaysia. But I have to leave EU waters each 18 months.
Not sure about other EU countries, but a German who is residing in Germany has to register his boat under German flag.
If you want to register the boat within EU, be sure she is CE certified.
What kind of evidence the seller can provide that he paid VAT?
Better ask the seller to sail her to Greece and do the transaction there.



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[Sindbad]

Originally Posted by MarkJ

Perhaps the sale could be during a sail from turkey to greece?

He clears out on his papers, you clear in on yours.

Don't think this works. The seller needs his registration to clear out from Turkey. But without deregistered the boat, the new owner can not register it under his name. From my experience this takes several weeks to complete the process


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[meirriba]

Perhaps you should employ a laweyer to draft the purchase contract. And, put a clear provision in the contract as to the responsibility for any tax that arises from re-registering the vessel under your name in the EC.
Part of the payment could be held in escrow until new registration is successful

[boat-bidder]

Patrick
I closed on a boat there in January. When I finally was able to get the boat on a ship to the US, I was told that I had to pay to close the "transit log". This was news to me and cost about $1000.
Boat-bidder


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[IdoraKeeper]

There are no issues with buying a turkey other than not getting one that's too big.

[Squeaky]

Originally Posted by IdoraKeeper

There are no issues with buying a turkey other than not getting one that's too big.

Good evening:

There are lots and lots of issues with buying a yacht in Turkey if one listens to all the comments made by others who will raise every issue from transit logs, registration and maybe inheritance tax if you give them a chance.

My recommendation is to have the original owner clear the yacht out from Turkey and sail to the nearest Greek island where he can legally enter. Once cleared in sign the bill of sale and have it witnessed by someone official such as the harbour master. Collect any receipts for harbour fees and sail back to Turkey where the former owner can now clear in again as if he simply sailed over to Greece for a short cruise.

Once the funds have changed hands the former owner passes the bill of sale to the new owner who approaches the authorities to have the transit log changed to his name. Yes, the date of sale will be prior to the date the former owner entered Turkey but does anyone expect that the authorities will notice or care. In any case the former owner will be long gone and out of the picture.

If the seller cannot sail the yacht to Greece he can arrange for a local skipper to make the short trip on his behalf - he simply has to provide the skipper with written authorization. The seller just has to ensure he dates the bill of sale the same date as the yacht visited the Greek Island. I don't think there is any law that says the owner must be on board when the sale takes place.

In fact if the yacht is in the vicinity of Symi the seller can simply drop in and spend a night collecting receipts for harbour fees which proves he was in Symi when the sale took place. He can then return to Turkey and pass everything to an agent to have the name on the existing transit log changed without any mention of the visit to Symi.

The fact that the sale took place while the owner was in Symi is only important if anyone asks questions later about VAT as there is no VAT payable on a yacht which is sold within the EU waters.

Having been in and around Greece and Turkey since 1980 I have only been asked about VAT once (2002) and that was in Kos after the captain clearing ahead of me raised a question about VAT to the official involved.

Cheers

Squeaky

[boat-bidder]

If you are interested, I can provide the contact info for a retired cargo ship captain, who acted as my agent for the purchase and shipping of a Grand Banks to the US. He is located in Instanbul and was extremely helpful, arranging for the surveyor, and maintaining the boat. He ultimately moved the boat to Marmaris for shipping.

[ikold]

Am in the process of buying a boat as well. This advice is very helpful.

So current owner can transfer his transit log to us or he must close it and we originate a new one?

How does this change if boat is in a Delaware Corporation and the buyer is not U.S. citizen and is leaving EU with it.