Temporary Import for Three Years into EU

[Sabbatical II]

I have searchd threads on tempory import to the EU but am still confused as to just how I need to go about it if I want to leave the boat in the Med for at least 3 consecutive seasons. My boat will be Aussie registered and I am an Aussie citizen. For at least 3 consecutive years, I want to sail in the Med from May to September (5 months), then put the boat on the hard somewhere for 7 months returning home until the following May and cruising some more. Eventuallly the boat will be brought home to Australia.
Information I can find seems to say I can stay in the EU for 18 months, but I can't find information on how long I have to stay out of the EU once the 18 months is up before I can re-enter. Also, if I lay up the yacht in a non EU country after the first 5 month period, does my 18 months start again when I resume again the following May?

[Southern Star]

There have been threads on this before. As I recall, your maximum total stay in the EU is 18 months, although care must be taken as each country has its own limitations (for example, there was one instance where a boat was impounded because it remained in Spain for more than their individual limit, even though it had been in the EU for less than the 18 month total). If you store the boat in a non EU country, then that will not count towards the 18 month period. If you leave the EU for 5 months, then it is my understanding that you would not be entitled to an additional 18 months any more than if you had merely left it for a day; rather, you would only be entitled to an additional period of 5 months (or whatever period you were out of the EU). Hence, if you intend to sail the boat for 5 months evey season for three years, then you will be required to store it outside the EU for the remaining 7 months after your second sailing season. Once again, however, care must be taken to ensure that you are not violating the laws of any country in which you intend to store it for 7 months - some countries only permit a foreign registered vessel to remain within their borders, or territorial waters for a maximum period of 6 months.

Brad

[Charlie]

Originally Posted by Southern Star

There have been threads on this before. As I recall, your maximum total stay in the EU is 18 months, although care must be taken as each country has its own limitations (for example, there was one instance where a boat was impounded because it remained in Spain for more than their individual limit, even though it had been in the EU for less than the 18 month total). If you store the boat in a non EU country, then that will not count towards the 18 month period. If you leave the EU for 5 months, then it is my understanding that you would not be entitled to an additional 18 months any more than if you had merely left it for a day; rather, you would only be entitled to an additional period of 5 months (or whatever period you were out of the EU). Hence, if you intend to sail the boat for 5 months evey season for three years, then you will be required to store it outside the EU for the remaining 7 months after your second sailing season. Once again, however, care must be taken to ensure that you are not violating the laws of any country in which you intend to store it for 7 months - some countries only permit a foreign registered vessel to remain within their borders, or territorial waters for a maximum period of 6 months.

Brad

It is my understanding that if you have proof of leaving the EU for even one day your 18 months restarts. As far as Spain goes it is my understanding that you can be required to pay a different tax there if you run afoul of their residency requirements. Here is a good link to info on VAT status: VAT and Your Boat I believe that the regulations were updated and now rather than no definition of how long a boat must remain out of the EU it is specific that if you enter a non EU country you restart your clock. Gibraltar is a good place as well as Morocco. It is all a matter of timing where you are and where you leaveSome Frequently Asked Questions about the rules for private boats
What are the basics?
Non-EU vessels which are intended for re-export may be temporarily be brought into and used for private purposes in the EU, or more strictly in the 'customs territory of the Community', (which includes our territorial waters) without customs duties or Value Added Tax (VAT) needing to be paid. But this can only be done by persons who are not EU residents - in official terms - by people who are 'established outside that territory'. This facility is thus NOT available to EU residents.
The boats concerned have to be placed under the 'temporary importation procedure' (TI) with Customs and the period of use in the EU is limited in time. When the time is up the boat has to leave, in official jargon this period is called 'the period of discharge'. The re-exportation of the goods from the customs territory of the Community is the usual way of ending or 'discharging' a temporary importation procedure. If the boat does not leave before the end of that time then customs duty and VAT become due.
A boat is temporarily imported into the EU and not into one of the constituent Member States. Thus it can move from one Member State to another with no further customs formalities during the 18 month period allowed.
How can a yacht be placed under TI?
Just crossing the frontier of the customs territory of the Community is in general sufficient. But, you may be required to use a route specified by customs and they may require you to make an oral or written customs declaration. It is possible they may require the provision of some kind of security or guarantee to cover the payment of the customs duties and VAT that become due if the boat does not leave the EU.
How long can the yacht stay in the EU?
Normally, you can use the vessel in the EU for one and a half years. In technical terms, the period for discharge for privately used means of sea and inland waterway transport is 18 months. This is laid down in Article 562(e) of the implementing provisions of the Customs Code. If the boat is 'laid up' ('put in bond') for a time the possibility exists for not counting the period of non-use (see below).
Can the 18 months be extended if the yacht is not used? You may want to go home for Christmas!
Yes, the eighteen month period may be extended for the time during which the yacht is not used. Article 553(2) second sub-paragraph of the implementing provisions of the Customs Code allows for this. However, the maximum overal period during which the yacht can remain in the EU is 24 months (Article 140(2) (pdf 75.0 KB) (75.0 KB) of the Customs Code).
Can you have another period of Temporary Importation? How long must you wait?
Yes, you are not limited to a single period of temporary import. You can sail the yacht out of the EU and when you came back again for another holiday a new period of temporary importation can begin. The customs rules do not provide for a 'minimum period' during which the goods must remain outside of the customs territory of the EU.
Where can you find the legal texts?
The legal provisions on temporary importation are found in:
• Articles 137 to 144 (pdf 75.0 KB) (75.0 KB) of the Customs Code
(Council Regulation (EEC) N° 2913/92 of 12 October 1992 establishing the Community Customs); NB Be careful if you want to print this as the whole of the Code is 102 pages long - print using the menu 'File' and select the pages you want).
• and in particular Articles 553 to 562 of the implementing provisions of the Customs Code.
(Commission Regulation (EEC) No 2454/93 of 2 July 1993) NB Be careful if you want to print from this as the implementing provisions is 751 pages long! - print using the menu 'File' and select the pages you want).
Important
This page is only a simple explanation of the law and is not comprehensive. The information it contains cannot be cited as definitive in relation to individual cases. Disclaimer.
your boat. Ok I found the document but that references the legal language

Sorry the links didn't come thru in the second article.

[Roaring Girl]

Charlie has posted a lot of good links. To separate out two things people often confuse:

you have certain constraints, usually 90 days, and various limits on return times. These relate to your nationality and you can look them up on the requirements of the specific countries. See the separate thread on schengen as well.

The boat has different limitations relating to your liability for tax. There are two different sets of taxes. Firstly there is VAT, levied at different rates in different jurisdictions. Charlie's link is good (but I'm not sure Gibraltar counts as leaving the VAT zone any more). I believe that one day's leaving counts as good enough, but you will need documentation so simply arguing you were in international waters won't cut it.

Secondly some countries (patchily enforced) have a requirement to import your vessel if you are in the country for more than 180 days. This exposes you to a value based tax, as well as submission to their regulatory regime. (This is usually based on cars, and is designed to ensure that cars are maintained in a roadworthy condition.) In Spain, in partiuclar, there are stories of boats being impounded after this date is passed. Note their regulatory regime is complex, and, for example, requires you to achieve quite a high level of certification in Spanish.

One way to minimise the problem is to decommission your boat when you are away. This can be a bit complicated as in many areas the customs officials won't know what you are asking to do. Essentially you have them visit it in the yard and put stickers on it which puts it 'in bond', and the VAT and import clocks are stopped for that period. I know an Aussie boat that did this in the south of France.

It's a bit of work to organise but might be less than sailing to Tunisia, Morocco, Libya, N Cyprus, Turkey etc.

[goboatingnow]

Its simple

The Boat
A non EU-citizen or non-tax resident, may import a boat in the EU for a period of 18 months, extendable to 24 months without any requirement to pay any taxes or duties. No formal application to any country is necessary, it is a right conferred. The legislation does not set a time that the boat is outside the Eu for the clock to restart. Hence proof of being outside the EU for a day ( ie a stamp in a passport from a foreign country) will be accepted.

Just to be clear, you dont have to do anything specific.

So theres no problem meeting your requirments once you sail out of the EU for a very short while. Disputes have arisen over Gibraltor, while its in the EU its not in the Customs union. Spainish officials have disputed the clock reset on one or two occasions.

The crew
For non EU Crew, they will be subject to the Schengen Visa requirements, hence max 90 days in 180 days accross all Schengen countries, once you use up 90days you have to leave for 90days. Hence this is the biggest problem for you.

However Australia has a number of bi-laterial agreements with individual EU countries that allow for extended holiday stays, but you have to apply individually.

OK

Caveats

Despite RoaringGirls post, since you cannot legally remain in any EU country longer the 90 days or 180 days under some individual bi-laterial agreements, hence you cannot be treated as a tax resident hence local taxes ( such as the matriculation tax in spain as was mentioned) cannot and do not apply to you. ( despite some third hand scare stories). The people who fall foul of these are other EU citizens, where no legal impediment exists to long stays.

Local Bonding. Technically you can apply to a particular customs authority to seek placing the boat "in bond". This means that no taxes apply for the duration. Note that the expectation after the bond is removed is that you export the vessel.

Actually EU tax law technically surpasses local law as regard tax applicability, hence local bonding of boats is not actually suppose to be carried out. But like all things in Europe, locals officials often act in error or ignorance of EU law.

Local bonding isnt needed anyway, as the 18 month provison and the 1 day reset is generous.

Dave

[Roaring Girl]

Despite RoaringGirls post, since you cannot legally remain in any EU country longer the 90 days or 180 days under some individual bi-laterial agreements, hence you cannot be treated as a tax resident hence local taxes ( such as the matriculation tax in spain as was mentioned) cannot and do not apply to you. ( despite some third hand scare stories). The people who fall foul of these are other EU citizens, where no legal impediment exists to long stays.

You're quite right in principle, but I do know people who have left after the 90 days, for 90+days, leaving the boat in bond and then restarted the clock. But the local matriculation tax could apply to a boat left in, say, Spain even if the owners have left the country.

[Roaring Girl]

PS - this illustrates the importance of not relying on the various experiences people have had but, instead, either arranging not to exceed the 90 day/180 day limits or negotiating written agreements with local customs where possible and appropriate.

[jim_thomsen]

Greg,
Now you have a lot of information. As long as you leave the EU every 18 months your boat will have not problem. I was checked in Spain and France and a 3 day stay in Morocco qualified (they did ask for marina and fuel receipts.) I was worried that maybe Gibraltor would not qualify. But talking with the Gibraltor company YACHTHELP (Robert Hopkin +350 44 680) they handle a large number of super yachts and would not be in business if Gibraltor didn't work legally.
The bigger legal issue is the 90 day visa but we were never asked about that.

[goboatingnow]

Originally Posted by Roaring Girl

....

You're quite right in principle, but I do know people who have left after the 90 days, for 90+days, leaving the boat in bond and then restarted the clock. But the local matriculation tax could apply to a boat left in, say, Spain even if the owners have left the country.

NO NO please stop putting information that is in the realms of scare stories. The Matric tax requires the owner to have tax residency in Spain. It only applies after 180 days, whereby Spain requires you to import any "means of transport" and pay the matric tax. ( ie cars, boats, planes).

You cannot and no one that is not legitimately a tax resident has paid such taxes.

These stories do the rounds and gain credibility.

Dave

[Roaring Girl]

Originally Posted by goboatingnow

NO NO please stop putting information that is in the realms of scare stories. The Matric tax requires the owner to have tax residency in Spain.

Dave

I do not do scare stories but report actual experience from which other people may benefit.

If you look at the report done by the Pleasure Harbour Association in Spain, as reported by MBY in their translation, they say:


The report says the condition for which there is an obligation to register in Spain, and pay the Special Tax, is when the owner or user is a private individual and is a resident - when they lived there for more than 183 days in a year or when they have their main business interest in Spain.

When a vessel belongs to a company, there is an obligation to register it in Spain when the company has operating premises there.

If a vessel is located permanently in Spain or for more than 183 days a year, the report states, this fact alone does not determine an obligation to register it in Spain.

(This is admittedly 2 years old, but is the most succinct English version I have seen.) The question then becomes what constitutes residency - ie more than 183 days in a year. A non-EU national cannot reach that figure without special arrangements or in any case contravening their 90 day personal visa. However, if for whatever reason they do reach those 183 days (legally) then their vehicles (vessels) become liable.

EU nationals can reach that figure and at that point have encountered some difficulties.

The OP asked a specific question and I, and others, have sought to point out some of the risks that will need to be managed (including those of zealous/patchy/misdirected official enforcement) and some of the mechanisms which might be investigated to mitigate those risks. Those are not 'scare stories'

[goboatingnow]

You're quite right in principle, but I do know people who have left after the 90 days, for 90+days, leaving the boat in bond and then restarted the clock. But the local matriculation tax could apply to a boat left in, say, Spain even if the owners have left the country.

RoaringGirl, Your previous post just undermines this piece you posted before and it was this piece and only this piece that resulted in my intervention. As a tourist or a visitor you are not and cannot be subject to the matric tax in SPain.

In particular this statement " But the local matriculation tax could apply to a boat left in, say, Spain even if the owners have left the country" is untrue. Unless the owner is a tax resident of Spain, then once they leave the boat cannot be subject to teh matric tax and I know of no instance where it has been so applied.


There was a whole load of scare stories about the matric tax when Valencia in particular started enforcing it ( the tax has been on the books for years). Spain suffers from loads of people from abroad retiring there and not declaring themselves as resident. , ie apartment ashore and boat in the marina, but not declared as resident. This is especially true of many UK and german on pensions from their original country.

Valencia in particular suffers this as does Andalusia and both began a crack down, Several long stay people got whacked, but then they were bound to declare themselves and didnt.

Dave
Dave

[Roaring Girl]

Dave, I don't believe I have contradicted myself.

I've sent you a separate PM.