LAGOS NAVIGATORS=
The following
article was written in 2009, by two very active members of Lagos Navigators=
(Class
of 2005!). Originally produce=
d for “Flying
Fish”, the magazine of the Ocean Cruising Club, David has agreed we c=
an
circulate it for our members who may be travelling east. It is particularly relevant for
Americans and citizens of other non-EU countries.
SCHENGEN, VISAS &
VAT RULES IN EUROPE
Janet
Erken and David Heath
Janet and I had =
been
cruising aboard “Alegría”, o=
ur
homebuilt 38ft Ingrid cutter, for many years before crossing the Atlantic in
the summer of 2005. We spent our first winter in Lagos, southern Portugal, =
our
second in southern Spain, our third near Rome, and the winter of 2008/09 in
Marmaris, Turkey. We feel that everyone was an excellent choice.
Like many
Americans, we assumed that the European Union would be a large number of
diverse countries but run under the same set of logical laws, uniformly and
clearly enforced. Now our opinion is that, though it may be the same set of
laws, they are interpreted, enforced and often ignored very differently from
place to place, from person to person, and perhaps even from day-to-day. And
keep in mind that the rules are different depending on your nationality, the
country you are visiting, and probably other variables too.
After lea=
ving
the US and before sailing to Europe we spent some time in another country in
the New World which had best remain unnamed. We enjoyed it very much, but o=
ne
of the facts of life was that the laws were no more than a
‘suggestion’ to the officials. We quickly learned that a good
working knowledge of what the law actually said, helped a great deal when an
official thought we were newbies waiting to be
plucked, but reality was only what you could work out with the person you
talked to, at the time you talk to them – you never really knew for s=
ure
what was going to happen when you walked into an official’s office. B=
ut,
over- all, it was a great country and our favourite so far in spite of the =
many
‘free spirit’ officials.
We were
amazed to find that the EU is shockingly similar. But don’t be put of=
f by
this – we are having a great time
We, and most of our friends, have f=
ound
that Portugal generally enforces the laws thoroughly and uniformly. Being v=
ery
bureaucratic is not the worst that can happen.
We were t=
old
that as Americans we got 90 days in a six month period. After that we were
allowed apparently unlimited – or least more than four in a row ̵=
1;
90-day extensions. In 2005 we paid 45 euros eac=
h for
these, but shortly after that some friends were charged 80 euros
each. First you need to find the correct office (no small trick), then prove
solvency (via bank statements etc) and medical insurance or ample solvency,
produce the correct sized photos, and finally spend about a day in line
fighting the paperwork. We were also told that, while the ‘90 days in=
a
six month period’ automatic visa for Americans worked for the whole
Schengen group, we would need extensions in each individual country if we
overstayed our initial time. In other words, our Portuguese extension only
worked for Portugal. To travel on to Spain we would need a Spanish extension
etc.
We also
understood that, if we left the Schengen area at the end of our 90 days, wh=
en
we returned we would start a fresh six month period and a new 90 days. This=
was
confirmed by a Portuguese official, so at the end of the first six months we
took a bus trip to Seville and Gibraltar (for about the same cost as the
extension), and asked to have our passports stamped in Gibraltar to show th=
at
we’d left the Schengen area. On our return we continued to enjoy Port=
ugal
and, after 90 days, went in to buy our Portuguese extension, only to find t=
hat
we were in Portugal illegally – a very bad idea.
This offi=
cial
assured us that the other official was wrong, but told us that since we had
been given incorrect information by one of his colleagues there would be no
fines this time. We were even allowed to buy another 90 day extension. We w=
ere
also told that, if you buy a 90 day extension but can prove that you left
Portugal two days later, the clock stops and you have 88 days left on your
extension for Portugal to use at a later d=
ate.
In fact we left Portugal later the same day, but I will not be surprised if,
the next time we visit and want to use our remaining 89 days, we find that =
the
rules have changed.
In 2006 Spain and Italy did not see=
m to
enforce the 90 day period at all, but this may have changed. We were told (=
and
believe) that the officials did not want to be bothered with paperwork for
people who were behaving themselves. In other words, they don’t have a
problem if you stay for several years, though at some point they may start wondering when you̵=
7;re
going to leave.
However, =
if
you overstay in Spain or Italy and then enter a new Schengen country the se=
cond
one may say that you are in trouble. This is made more confusing in that, as
you go from country to country inside the EU, there is usually no border
official to talk to. It is just like going from Texas to Louisiana – =
you
just go. So it would be possible to be illegal for a long time and never kn=
ow
it, though if you returned to Spain or Italy to check out of the Schengen a=
rea
you’d probably be none the wiser since they don’t care.
For Americans and, I think, Canadia=
ns,
Greece has yet another interpretation of the 90 day Schengen visa. It was o=
ur
understanding that, as Americans, we could stay for 90 days in Greece witho=
ut a
problem, even though we’d already spent weeks or months in Italy.
However, to get an extension after 90 days in Greece is extremely expensive=
. We
heard various rumours that it cost US $800 or US $1200 per person per month,
and were also told (unofficially) that there were expensive problems if
Americans left a boat in Greece for more than 90 days, even though they
themselves had flown out.
It’s worth mentioning that in
Turkey 90 days actually means 88, as they count both the first day and last
days. Sort of like floors in buildings – go to England and the third
floor is called the second floor. Isn’t travel broadening?
=
Where and =
When
do You Need to Report to Officials?
General
Rules
Another confusing issue is where a=
nd
when to check in as you move around inside the EU. It is our understanding,
from talking with two different customs officials in Portugal, that you che=
ck
into the EU at your first port of entry and, after that, one does not need =
to
seek out officials at every new port to show them the papers. Of course the
documents must be produced if anyone in an official capacity asks, and some
did, but they stressed that it was not necessary to go looking for an offic=
ial
even when entering another EU country.*
Marinas
always want to see your passport and boat papers, and may volunteer local
knowledge about official rules. However don’t assume they are always
correct – they can mean well but still be confused.
Greece seems to have its own view o=
n when
to report. It is definitely necessary to check in at one of the several
official ports of entry on first entry to Greek waters, even if coming from=
an
EU/Schengen country such as Italy. As Americans we could not check in at
There is a
lot of confusion within Greece as to where and how often you must check in =
at
the various ports. We were told by the officials at Corfu that we only need=
ed
to seek out an official and check in at the large cities of Athens and Thes=
salonica.
They were clear and firm on this and it sounded simple enough to us. But wh=
en
we checked out of Simi in eastern Greece en route to Turkey, the lady said =
that
we should have checked in about every twenty days for our own safety. We ha=
ve
no idea why that would have made anyone safer, and the fees that were charg=
ed
were quite small so it was not that they wanted our money, but it was often=
a
time-consuming hassle to find the correct officials and go from office to
office in the prescribed order.
And
remember that you see typically 3 offices when doing your papers in Greece.
Some offices may “multitask,” but if seeing the officials, be s=
ure
to find the office that will stamp your Transit Log. One American frequently
showed his papers to some official, but got no stamps and got yelled at as =
he
left Greece for too few Transit Log stamps. I think he saw the Passport Pol=
ice
and it is the Coast Guard that stamps, but find out.
In Greece=
it
seems that everyone has a different experience. Some Canadian friends were =
told
they had to check in at every single place they stopped, which caused them a
lot of effort and frustration and seriously lessened their enjoyment of the
country. The crowning blow was to be threatened with a 1200 euro fine when
checking out at Samos, because the official in Corfu had not stamped a Cana=
dian
woman’s passport when she entered Greece from Italy. After milking en=
ough
adrenaline from her, and since she was leaving for Turkey within minutes, he
eventually let her go with a stern warning never to let it happen again.
Knowing this, we asked the officials in Corfu to be sure to stamp our passp=
orts
– but they explained that they could not, as we had just come from It=
aly.
We made sure not to check out of Samos.
Another issue which is often discus=
sed
and causes some fear among visitors to the EU is just how long a non-EU boat
can stay in the EU without having to pay VAT. Everyone – or at least
every official – should know by now that it’s eighteen months if
the boat is registered outside the EU and the owner is not an EU resident. =
Even
so, a customs official in Cyprus recently told a British boat owner that the
maximum time was 180 days. That used to be correct, but I believe the eight=
een
months change came in 2001 so the official was very wrong.
If the bo=
at
is correctly put into bond and not used, non-residents can add up to six mo=
nths
for a maximum possible of 24 months. Several websites carry information on =
this
topic:
http://ww=
w.noonsite.com/Members/webmaster/R2002-02-26-2 &nb=
sp;
and
http://www.eurunion.org/legisl=
at/Art553to562.pdf
These all agree that (a) the time l=
imit
is eighteen months, and (b) there is no set period during which the vessel =
must
stay out of the EU before returning to re-start the clock. However it seems
that a few officials still believe in the old ‘six months in, six mon=
ths
out’ rule, so it may sometimes be necessary to stand one’s grou=
nd.
While cru=
ising
during the winter months in the Med can be very nice, there can be long per=
iods
of very nasty weather. For this reason we have planned our ‘EU
exit’ for the summer months. This means that we leave every ten to
fourteen months instead of eighteen, but we prefer to pick our time and pla=
ce
rather than perhaps be forced into making a desperate run under questionable
conditions. We found going to Morocco and Tunisia convenient when they were
nearby, and they were interesting to visit. Some said that going to Gibralt=
ar
or Ceuta was sufficient, but it was simple and enjoyable to visit the nice
marina at Smir in Morocco, and then we were cer=
tain.
We have been told that Portugal* and
Spain, and probably many countries, may also tax you a percentage of the va=
lue
of your vessel if it remains in their country more than 180 days in a calen=
dar
year, or in some cases 180 consecutive days. This is similar to many states=
in
the US, where they grab you after 90 days. The percentage is said to range =
from
15% to 22% depending on the country. Although in practice it seldom seems t=
o be
enforced, it is another worry for cruising sailors who live in fear and in
violation.
We were t= old that in Spain it was not how long the boat was there which mattered, but how long the owner was in the country. In theory,= if the boat is there for more = than 180 days and the owner cannot prove that he was NOT outside of Spain long enough during that time, he is consider to be resident and, if his boat is = more than 9m long he will be obliged to ‘import’ it, which costs of = 13% of its value, and then pay 11% registration tax. And to register a boat in Spain you need Spanish Coastguard approv= ed safety equipment, your boat must pass a Spanish inspection, and you must ga= in a Spanish operator’s license – for which the exam is in Spanish!<= o:p>
Rumour ha=
s it
that these rules were brought in to catch commercial operations – cha=
rter
and hire fleets – and in the real world many EU and non-EU cruisers s=
tay
in Spain for years without problem. However they keep their ears to the gro=
und,
and generally after three or four years they leave for a year or so before
returning. As always, some harbours are said to be relaxed, some rigorously
policed – but things change, so get fresh information.
Spain also
has two other, much lower, taxes on the rule book though neither seem to be
enforced with any consistency. One is an annual ‘lighthouse tax’=
; (Tasa de Señalización Mar&i=
acute;tima) of 4 euros per <=
span
class=3DSpellE>sq.m. (LOA x beam); the other a ‘Recreational V=
essel
Tax’ which seems to be limited to marinas inside commercial ports and=
in
2008 was set at 0.0612 euros per sq.m.
per day.
LAGOS NAVIGATORS AMENDMENT; December 2009
The structure of the Boat Tax in Portugal changed in Jan 2008. It is now applied only to boats bu=
ilt
after 1986 and with engine over 20 Kw. (26.82 HP). The tax rate is now
based only on engine size – in 2008 it was €2.10 per Kw (1 Kw =
=3D
0.7457 HP). So, the tax roughly =3D €1.50 per Hp!
The debate regarding the “Time in Portugal” - over whether
the 183 days is continuous or accumulated - continues. The actual law=
can
be read either way – and we have now (Dec 2009) written to
Finanças to formally challenge one local rule (“any 183 days i=
n a
tax year”). We’ll let you know the outcome......
There are other changes to the procedure, too, and the full saga to d=
ate
can be seen on our web site pages at http://www.lagosnavigators.net/html/bo=
at_tax.html
In light of the Spanish tax described above, and other tax iss=
ues,
it is well worth keeping airline and hotel receipts – and even airline
boarding cards – to prove when you left and re-entered the country by
air. It’s also wise to keep at least some of your marina, fuel dock a=
nd
other boat-related, even restaurant receipts, to show where the boat was on
that date. More than one boat has been able to refute a large tax, and/or f=
ine,
by being able to prove that they were out of the EU on a certain date. As w=
ell
as the official paperwork, we kept our fuel dock and Marina Smir
receipts from Morocco for several years.
At borders, you may want to politel=
y ask
for a stamp in your passport, but remember this will be impossible to hide.
While receipts, etc may be shown of not as you wish.
So, you do the best you can and you=
still
are told that you are wrong? We always try very hard to never get into a te=
st
of wills with anyone in authority. A polite, non-confrontational: “So=
rry!
But I thought that...” or, and very, very politely: “I’m
confused. Could you please show me where it says that in the law on the
Internet?” are more likely to further your cause. Perhaps the links on
the previous page may also help make your case. But DO let them save face. =
Even
if you win, the next several poor fools in line will pay the price. And the
next one might be me.
If, as an
American, by now you’re thinking “how bad those other countries
sound”, talk to a few foreign cruisers who have visited the USA ̵=
1;
some have real horror stories. I have met high-ranking US Immigration Officials who are working hard to make the US laws fai=
r and
rational, but they have to hire humans to administer them and some of these
people are much less reasonable.
Learning how to use Google and Wiki=
pedia
are important skills when cruising today, just as Astro-navigation was thir=
ty
years ago. Do you check Google Maps’ satellite images of the anchorag=
es
before you go? Try it – they may be several years out of date but they
can be a wealth of local knowledge.
Similarly, research on the internet=
may
also warn of changes to countries’ rules and regulations. Better to k=
now
the rules than be caught out by an unexpected – and often poorly
publicised – tax or fine.
Janet Erken and David Heath