March 15th, 2017
Changes to the Cruising Law in Croatia for Commercial Yachts
BWA Yachting, the leading worldwide provider of marine agency services to superyacht owners and their crews, would like to draw your attention to some imminent changes to the cruising law in Croatia applicable to commercial yachts. For the time being, we would like to point out two major changes to the current law;

1. VAT will from May 1st be charged at the rate of 13% on all charters that either start in Croatia or start in a third Non- EU country and then pass through Croatia. This means that 13% VAT will be settled on the entire charter contract if the charter starts in Croatia. For all charters starting in a third Non-EU country 13% VAT will be calculated on the number of days spent in Croatia.

2. All third country flagged (Non-EU) commercial registered yachts will need to obtain a charter license, even if their charter starts abroad (either in an EU or a third Non-EU country). As of this year, length limit will be suspended. This means that even those commercial registered vessels with a registered length of less than 40m will be able to carry out charter activities in Croatia and therefore will also be required to obtain a charter license.

Due to these newly adopted changes, an enormous number of charter license applications is expected this year. We would therefore like to urge all of our clients who are sailing under commercial third country flagged yachts to contact us as soon as possible in order to start the charter license application process on time, regardless as to whether or not they have fixed bookings for Croatia.
We emphasize this because the issuance of a charter license is not a major expense (less than €350) and once obtained, it will then be valid for the entire calendar year. There is also a possibility that the Croatian Ministry of Maritime Affairs might temporarily suspend the issue of charter licenses for up to 3 months in order to avoid market overload.

For more information and additional clarification please contact Mr. Dorijan Dujmic, Managing Partner of BWA Yachting Croatia at croatia@bwayachting.com