What is the current KDV (VAT) rate applied to bareboat charter contracts in Turkey in 2025, and does it apply to foreign-flagged charter companies differently?
Turkey's standard VAT rate is 20% as of July 2023, and it applies to all bareboat charter contracts in Turkish waters regardless of the boat's flag [1]. This rate appears on your final invoice from the charter operator.
Foreign-Flagged Vessel Restrictions
Foreign-flagged yachts under 39 metres cannot legally accept charter clients in Turkish waters[2]. If your boat is Greek-flagged and under 39 metres, you may disembark clients in Turkey but will pay €36 per metre to do so. Vessels larger than 39 metres can apply for a special Turkish charter licence, though this involves additional regulatory requirements [3].
Additional Taxes on Operators
Beyond VAT, Turkey introduced an 8% Special Consumption Tax (ÖTV) on leisure vessels in 2023 [1]. For charter operators, this stacks on top of the 20% VAT, creating a combined tax burden significantly higher than in Greece or Croatia [4].
What This Means for Your Booking
When booking a bareboat charter in Bodrum, Göcek, or Fethiye, expect a 20% VAT charge on your contract. However, if the operator is using a foreign-flagged yacht under 39 metres, they are operating outside legal charter parameters, which creates liability risk for you as the guest in case of an incident [2].
Key Recommendation
Confirm the boat has a Turkish flag, is over 39 metres with proper licence, or operates under a legitimate exemption
Verify regulatory status before signing
Don't assume cheaper quotes reflect better value if compliance is unclear
Request written confirmation of the vessel's flag and charter authorisation
Yes—the 20% VAT applies uniformly to all bareboat charter contracts in Turkey regardless of vessel flag [1]. Q: What happens if I charter a foreign-flagged boat under 39m? A: The operator is technically outside legal parameters, creating risk for you as the guest if there's an incident [2]. Q: Are there taxes beyond VAT? A: Yes—an 8% Special Consumption Tax (ÖTV) on leisure vessels applies to operators on top of VAT [1].
