Turkey Imposes 8% Tax on Yachts, Ending Luxury Exemption
- S. A. Jaffri
- Sep 11
- 3 min read
Turkey has reintroduced an 8% Special Consumption Tax (SCT) on yachts, motorboats, and pleasure vessels, ending more than eight years of luxury exemptions. The decision, published in the Official Gazette, took effect immediately and is part of Ankara’s broader efforts to increase tax revenues and address budgetary concerns.
End of Yacht Tax Exemption in Turkey
For 8.5 years, yacht owners and buyers in Turkey benefited from a zero-rate SCT exemption. With the new decree, yachts, motorboats, and other pleasure craft — including small cruise ships and non-sea navigation passenger vessels — are now subject to an 8% yacht tax in Turkey.
This move follows years of debate over the fairness of tax exemptions for luxury vessels while essential goods like automobiles and mobile phones carried heavy tax burdens.
Turkey’s Push for Higher Tax Revenues
Finance Minister Mehmet Simsek has emphasized the need to strengthen Turkey’s revenue streams to reduce the budget deficit. The country has set a budget deficit target of 3.1% of GDP for 2025, but weaker-than-expected revenue collection has made achieving this goal uncertain.
From January to July 2025, Turkey collected ₺1.02 trillion ($24.73 billion) in Special Consumption Tax revenues, making up nearly 18% of its total tax income. The reintroduction of the yacht tax, while a small portion of SCT revenues, adds an extra income channel to state finances.
Impact on Turkey’s Yacht Industry
Despite the new levy, Turkey remains a global leader in yacht production, ranking second worldwide in superyacht construction. According to The Global Order Book 2025 by Boat International, Turkey has 146 projects under construction with an average length of 43.9 meters. This represents a 12.9% share of global orders by number and 14% by total length.
In addition, Turkey’s ship, yacht, and services exports reached $1.25 billion during the January–August 2025 period, highlighting the sector’s importance to the national economy.
Debate Over Luxury and Fair Taxation
The reinstatement of the yacht tax in Turkey has reignited debates about luxury taxation. While the decision narrows the gap between essential goods and luxury items, automobiles and other consumer products continue to carry much higher SCT rates compared to yachts.
Frequently Asked Questions (FAQs)
What is the new yacht tax rate in Turkey?
Turkey has imposed an 8% Special Consumption Tax (SCT) on yachts, motorboats, and other pleasure vessels.
When did Turkey’s yacht tax come into effect?
The tax came into force immediately after publication in the Official Gazette in September 2025.
Why did Turkey reintroduce the yacht tax?
The tax was reinstated to boost state revenues and address debates about fairness in taxation between essential goods and luxury items.
How long was the yacht tax exemption in Turkey?
Yachts and pleasure craft enjoyed a zero-rate exemption for 8.5 years before the 2025 reintroduction.
Does the new tax affect Turkey’s yacht industry?
While it adds some cost for buyers, Turkey remains a global leader in yacht production and exports, ranking second worldwide in superyacht construction.
Expert Maritime Legal Advice in Turkey
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