Legal Framework for Yacht Registration in Turkey
Yachts are mainly regulated by the Turkish Commercial Code, the Turkish International Ship Registry Law (Law No. 4490), and other maritime rules. Registration can happen in one of three systems:
- National Ship Registry (Milli Gemi Sicili – MGS): This is only for Turkish citizens and Turkish companies.
- Turkish International Ship Registry (TUGS): This is open to Turkish citizens, Turkish companies, and foreign nationals living in Turkey. Yachts registered in TUGS enjoy tax exemptions and flexible crewing rules.
- Home Port Registry (Bağlama Kütüğü): This is a simpler system for private yachts, also available to foreign residents of Turkey.
Choosing the right registry is an important step in completing a yacht sale in Turkey.
Who Can Register a Yacht in Turkey?
Turkish citizens and companies can register under any registry.
Foreign nationals who live in Turkey can register in TUGS or Home Port Registry.
Non-resident foreigners cannot directly register yachts in Turkey but can own yachts through Turkish companies or keep them under a foreign flag.
This means that foreign buyers purchasing boats in Turkey usually need legal advice on whether to register under Turkish law or maintain the yacht in a foreign registry.
The Yacht Purchase Agreement in Turkey
The yacht purchase agreement in Turkey should be carefully written to meet international standards and comply with Turkish law. Typical sections include:
- Description of the yacht: builder, year, tonnage, and registry status.
- Purchase price and payment schedule: often held in escrow until delivery.
- Delivery terms: place of delivery (Izmir, Bodrum, Marmaris, or Istanbul), condition of the yacht, and inspections.
- Warranties: confirming the yacht is free of mortgages, liens, or other claims.
- Governing law: Turkish law typically applies if the handover happens in Turkey.
A lawyer makes sure the agreement is enforceable and covers both registry and customs matters.
Taxes, Customs, and VAT Considerations
Domestic sales of Turkish-flagged yachts may result in VAT at 18%.
Exports of yachts to foreign buyers can be exempt from VAT if the correct customs procedures are followed.
Foreign-flag yachts that haven’t paid VAT can stay in Turkey under the Temporary Admission Regime, as long as the owner is not a resident in Turkey.
Knowing these rules helps avoid unexpected costs when completing a yacht sale in Turkey.
Step-by-Step Guide for Turkey Yacht Purchase
- Conduct due diligence on title, liens, and registry.
- Negotiate and sign the purchase agreement.
- Set up escrow and payment methods.
- Manage customs and VAT compliance.
- Register the yacht in Turkey or transfer it to a foreign flag.
- Complete delivery and acceptance at the chosen marina or port.
Why Legal Support Matters
From drafting the yacht purchase agreement in Turkey to advising on the best registry, a maritime lawyer ensures your yacht purchase in Turkey is safe. Legal guidance also protects you from VAT liabilities and ensures your yacht is correctly registered for international navigation.
Whether you are buying a boat in Turkey for personal use or exploring the tax benefits of TUGS for commercial purposes, professional legal support can make a significant difference. Turkish maritime lawyer Baris Erkan Celebi provides legal support to yacht owners through well-organized yacht sales in Turkey, ensuring smooth delivery, proper registry, and long-term security for your investment.
