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In The Market For A Yacht? Head To Athens' Alimos Marina For "Blue Water" Specials
The ongoing disclosure about the tax-evasion habits of Greece's rich and famous, has recently hit new amusement highs: a crack down on the ultra high net worth individuals, those who have one or more powerboats parked in the Athens marina, indicates that a majority have declared incomes of less than €40,000 in the past year "an amount that would barely cover their cost of fuel." The good news is that with yacht owners sweating, the sale offers on Athens yachts has surged. The unpleasant alternative - if owners refuse or are unable to pay new taxes, which could include a VAT at 23% on the price of the boat plus another 10% luxury tax, as well as a punitive fine, amounting to 66% of the cost of a new boat, the authorities will confiscate the boats. And as can be seen by this satellite photo of the Alimos Marina, there is more than enough boats for sale to satisfy even the most snobbish tastes.
“For sale” signs have appeared on a handful of gleaming Italian-made power boats and luxury motor-yachts after a team from SDOE, Greece’s financial police, visited the crowded Alimos marina near Athens.
Other yacht owners are trying to sell their craft by word of mouth as SDOE steps up a crackdown on tax evasion by high-earning Greeks.
“Make some discreet enquiries and you’ll find plenty of sellers,” said a marine technician who asked not to be named, gesturing towards a large vessel flying a Cayman Islands flag.
Oh and yes, all the bullshit about the imploded Greek economy being ahead of schedule was, shockingly, lies. Then again, with a tax department which recently relied on Google Earth photos to track down those with undeclared swimming pools, it is above par for expectations.
With first-half budget revenues lagging behind projections, the finance ministry is trying to boost tax inflows by attacking “lifestyle” tax evasion.
Last week it set a target of collecting at least €2.5bn this year in fines and back taxes owed by thousands of Greeks who “forgot” to declare ownership of yachts, swimming pools and luxury cars on their annual tax return.
“Among the big-ticket items were power boats costing up to €1.5m,” said Theodoros Floratos, a SDOE official co-ordinating the investigation of yacht owners.
As Greece’s economy boomed after the 2004 Athens Olympics, a 60-foot Azimut craft with a top speed of more than 30 knots became the status symbol of choice for successful professionals.
“There was an explosion of Athenians buying top-of-the-range power boats … Banks were lending more than half the purchase price to their private banking clients,” said Jonathan Chandler, a sailing yacht charterer.
Then again, in keeping up with the suddenly popular global approach to ignore a problem until it has bitten all those involved in the gluteus, it seems that the "90% off" offers are only yet above to hit the market.
Dozens of large powerboats were last week occupying prime waterfront berths around the Aegean Islands, amid reports the SDOE teams were still focusing exclusively on a cluster of big marinas around Athens.
Mr Chandler said: ”The mood seems almost defiant, with people out to enjoy a last blast cruise, whatever the consequences.”
Alas, the consequences will be there, once the vacations are done. And when the former yacht owners get back to work, and realize that not only is the 15th monthly check no longer there, but vacation days, and pension benefits have been whacked, the "defiant mood" will very soon turn quite ugly once again.
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will any of them trade their yachts for my single-wide? i promise to get all nine dogs out from under the front porch first...
Ha!
Thanks for that chuckle.
in fact rusty, i'd say that this aerial view looks something like my trailer park - except the rows are far too straight and I really don't spot any yard sales going on.
There was a local story here in SC several months back about the largest boat docked here (Tobacco lawyer's boat) owed something like $330k in taxes....Lots of people in the same boat (pun intended) as the large boat, but on a smaller scale.
Supposedly auditors are walking the docks more and more, but I'm not convinced.
edit:
http://www.postandcourier.com/news/2009/nov/12/big-boat-gets-a-big-bill-tax-charge-of-395826/
~$400k
and for it to be the only boat over $1M to be taxed by the county makes me laugh...in a sad sort of way
and that boat is here for at least 180 days...
oh, the irony of this wHOLE charade.
Very bottom of the picture, fourth in from the left. I'll give you $10,294 and a back rub. The deal is gone in 10 minutes and counting..............
Good choice. I'll take the 5th in from the left, and see you in Santorini!
Bulk discount for ZHers?
DavidC
Ferretti
"I'm on a boat, everybody look at me on a motherfucking boat..."
http://www.youtube.com/watch?v=avaSdC0QOUM
Hey now that was fun.
LOL! thats funny as hell!
The smart ones already sunk their boat.
In Amerstam there are a lot of boats that are "found" without a crew on the sea. The owners reported them lost, they collected the insurance and now "they are so happy" to be able to buy them back at 1/5 of the price.
Don't learn rich people how to ride a scam. If you think you'll outsmart them, that means they already robbed you blind.
Someone should send Elin Woods a Term Sheet.
I can't stop laughing. Oh how the mighty fall....on their own swords usually.
Same thing in Italy. This is bullshit though, why should citizens have to fund corrupt politicians off the books spending spree? It's time to radically reshape gov.
Tea freaking Party!
deleted - dad might be showing up.
That is one very, very busy harbor. Was the photo taken on a Monday or is it that no one can afford the fuel any longer?
Actually, not that full. About 80 slips open.
You want an example of "Rich Man Yacht Scam?"
You need look no further than Senior Senator From Massachusetts John Kerry, with new sailboat built in China and docked in Rhode Island to save some $330,000 in annual Massachusetts Taxes....
As an experienced sailorman and a former yacht owner (the good ship U-96) I had to give it up, as the slip fees and the CA TAXES on the boat and the slip were killing me..
And don't forget why he had it built outside the United States - CHEAPER.
TAXachusetts, bitchez.
Which one is Leo's? And where are the pensioners yachts, Leo?
There are no yachts for Greek pensioners. One old lady I know, who is legally blind, got her pension slashed in the latest austerity measures from 420 euros to 330 euros. Disgusting, the common people get screwed while the rich evade taxes and prancing around Mykonos with their yachts. My dad always told me "H Ellada Pote the Pethainei all Panda Koutsenei!" ("Greece never dies but is always limping").
Sorry Leo. Common people don't 'support' government.
Cheap and cheaper....goody....I wants buy me a big boat and toll road cheapest.
A 66% tax on a boat? Extortion is a helluva gig.
Updated S&P500 chart:
http://stockmarket618.wordpress.com
I hope my father decides to contribute to this site. 35+ years in the boating industry - floor sweeper to president - he has seen and heard it all. A rich "global" picture for sure. Dad, are you reading this?
No More Austerity Measures, Greek Government Says
The downward spiral has started.
There is a fine line between taxation and extortion. The Greek government is crossing it.
Wealthy people will always minimise their tax exposure when punitive rates apply. The only real solution is a simple flat rate, say 20%.
Then cut bloated government budgets to levels affordable by fair and minimal taxation.
"The only real solution is a simple flat rate, say 20%. Then cut bloated government budgets to levels affordable by fair and minimal taxation."
We've been down that road before. The cut's never come.
Cut spending 20% across the board and then we can discuss taxation...and I include fees, surcharges, gas taxes, licenses, permitting and every other damn thing they call it except a tax.
This sort of stuff isn't just happening in Greece, or with boats, or to the rich. I moved recently; I keep getting nailed for "use taxes" at obscene rates/ridiculous "market value" estimates on equipment I'm bringing into the state. They're doing it on anything and everything that you have to leave a paper trail on.
These tax dodging boat owners probably create more jobs than the tax revenue would ever create. Go after wealthy boat owners and it will always be the guys providing the gas, the maintenance, the dock space, groceries, etc that wind up getting crushed. Another 10,000 jobs lost and on welfare....
It's an old pic. See Kerry's yacht over there?
i called a broker in greece a couple or so years ago. big yacht was 1 mil but he was talking to me for half of that. he told me lots of boats, i send you tickets, pay hotel. best food in the world . lovely place and people. don't buy then you have good vacation. i thought me and the missus might get away for a couple of weeks on the cheep.
i thought he was greek. what do i know about accents. he turned out to be russian. we didn't go.
Good call, breezer1. Vegas junkets work for Vegas, but this is not Vegas. Had he promised to comp the trip IF you ended up buying would have been more believable.
Immigrants in Greece, recent ones, (many of them illegal) are less than 15% of the population but they account for over 50% of crime.
www.yachtworld.com
The price of used yachts has deflated as much as 50% in the past 2 years ... the deflation spiral continues unabated !!
If you have the cash & the cash flow, there are deals - but there will be better deals next summer, too, or the summer after that ...
Ah, but remember, the two happiest days in a boat owners life are the day he buys it and the day he sells it.
The other gem of wisdom I got was that you can easily simulate competition yacht racing at home: just step into the shower with your slicks on, turn on the cold water full blast, and tear up $100 bills.
Here is a little gem ... hotties at no extra charge!
http://www.yachtworld.com/core/listing/boatMergedDetails.jsp?boat_id=205...
Then again, with a tax department which recently relied on Google Earth photos to track down those with undeclared swimming pools,
Seems like a cost effective way of locating the properties.
As Greece’s economy boomed after the 2004 Athens Olympics, a 60-foot Azimut craft with a top speed of more than 30 knots became the status symbol of choice for successful professionals.
The people that own 60 ft. Aizmuts are not the wealthy. There are yacht owners that have dingys nearly that big on their yachts. Go after the 150' and above , thats where the real money is.
The Uniesse pictured here
http://www.antinews.gr/?p=58458
is about as big a boat as a Greek politician (in this case, Defense Minister Venizelos) will dare appear in. Even so it has proven to be the kiss of death for two former ministers who faced public outcry and had to end their political carreers. [Ironically enough I first read about it in Marina del Rey, on a friend's much bigger boat -- she's not a politician though :P ]
The swimming pools are another story. After screen-capping the relevant pics Greek IRS put out the word -- and tax evaders responded by massively buying COVERS for their swimming pools, that even camouflaged them to look like grass lawns. A simple comparison of the new aerial shots with former ones easily establishes just who it was who felt compelled to hide! Cagey. Score one for the white hats.
I wish all yacht owners well, seriously. Kudos to anyone - 'wealthy' or not - who successfully evades or avoids the depredations of governments.
Those governments work for the non-taxpaying lower- and middle-classes, or for the entrenched government employee bureaucracy. They sure as hell don't give a rat's ass for anyone with wealth, or any wealth producer. How commenters can cheer on the IRS - or any tax department - is beyond comprehension.
The Greek 'economy' will continue to hollow out, until everyone is a benefit-collector, an owner or employee of a semi-solvent small business or a government employee. No one with any wealth would be so idiotic as to try and actually create a real business under that kind of tax regime. The wealthy will just retire, sensibly. Or invest any funds still in Greece in more tax-clement climes.
What has to happen is: MORE PERSONAL RESPONSIBILITY. The old ladies on 340 Euros a month or whatever are just the most egregious cases in a society in which very few actually PRODUCE anything anymore and everyone has his or her hand out. No one is allowed to fail...just like any other western nation.
Hint: Anyone heard of any industrial product produced in Greece? Figs and olive oil won't cut it...
Well, I didn't exactly get my old man to post, but he read the article and responded to me. So I'll just cut/paste. He'll make it around sooner than later... So without further adieu, I present to you, my father, from his iPhone.
"Interesting article! I had heard about the situation last week. European countries like Italy and Greece have been notoriously lax about going after tax evasion.
The truth is that it is not necessary to pay sales fax on any boat kept in the USA if it is registered outside of this country. An owner only needs a cruising permit to keep the boat here. But he needs to cruise to a port outside of the USA every 6 months. There are certain places like the Cayman Islands that are popular that have no tax. Also RI has no boat sales tax. That was why JohnKerry kept his new yacht there. He had absolutely no legal obligation to pay Massachusetts sales tax. Florida just passed a law that caps boat tax at 18K. So a buyer of a 100 million yacht would only have to pay 18K."
Dad
Sent from my iPhone
jeese, only 18k? bargain.
I remember reading on the NYT something like there is a chance of solving the Greece problem if they could seriously tax the rich.
I wonder to what extent these crackdowns will affect the macro economy.
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