Seaside: Yearly, around mid July, right by the peak of the season authorities publish new regulations. Any news for this season?
No major new regulation to report besides the latest mooring regulation in the Mediterranean basin aimed to protect the seagrass beds.
Yachts over 80m must obtain authorisation from Port Authorities and yachts between 45-80m declare their intention to moor prior to arrival. If multiple projects are underway to create eco-friendly buoys and eco-anchoring, these are expensive and the possibilities for their use are not yet clearly defined.
Underwater lights are also banned in the evenings as they damage marine life.
Aside from tax, the yachting sector is and was subject to evolving regulations. What will be the developments that you believe will have a major impact on the future of the yachting industry?
Environmental policies: The yachting industry is making strides towards embracing sustainable practices in line with global efforts to address climate change. However, there are still significant challenges to overcome in order to achieve widespread adoption. These obstacles include regulatory limitations, the time required for approval from class societies and authorities for technological advancements, and the need for education among users to encourage them to step out of their "comfort zone." This long-term mission faces resistance due to an often overly economic focus rather than an ecological one when it comes to energy transition. Striking a balance between environmental protection and maintaining a competitive industry that supports economic growth, job creation, and tourism will remain crucial.
ESG policies: The industry is also increasingly recognizing the importance of integrating environmental, social, and governance (ESG) principles into its operations, driven in part by the younger generation's desire for change and support of global issues. Failure to meet these requirements could lead to potential commercial barriers and the risk of losing business.
Data Protection and Cybersecurity: Increased digitalization, data protection and cybersecurity are key concerns on yachts; new regulations, such as GDPR and cybersecurity frameworks, demand yacht operators to prioritize protection of personal data and create robust security measures to mitigate cyber risks.
Digitalization and Blockchain Technology: Blockchain technology has the most potential to revolutionize processes such as yacht transactions, documentation, and verification - but also building and refit processes. Understanding the legal implications behind these new technologies will be vital for sector professionals.
Compliance and transparency: Tax authorities are becoming more vigilant in ensuring proper compliance and addressing tax avoidance.
Crew Employment: The legal landscape concerning employment and crew regulations is shifting with an increasing focus on crew welfare and working conditions. Crew shortage, retention and mental health also became real issues the yachting industry has to address.
Either way, let’s see what the future reserves as it needs to be greener, more transparent and ethical.
This article was originally published on Seaside Magazine. The information is for general purposes only and should not be relied upon as a legal or tax advice. Specific guidance should always be obtained on ownership structuring, registration and operation of a yacht.
For more information, please contact:
Janet Xanthopoulos
Director and Head of Yacht & Jet Department
j.xanthopoulos@rosemont-yacht.com
07/2023