Turkey has introduced an 8 per cent Special Consumption Tax (SCT/ÖTV) on yachts, motorboats and other leisure vessels, ending a long-standing exemption that had allowed luxury marine vehicles to remain tax-free. The measure, announced in a presidential decree and published in the Official Gazette, takes effect immediately.
The new levy applies to a wide range of vessels, including yachts, kotras, cutters, motorboats, canoes, rowing boats, passenger and excursion vessels not intended for sea navigation, and pleasure craft under 18 gross tonnage. Both imported vessels and domestic sales in Turkey fall under the regulation. Previously, the rate for these categories had been set at 0 per cent, and such vessels were also exempt from motor vehicle taxes.
The decision marks the end of an 8.5-year tax-free period for yachts and leisure boats in Turkey, and follows years of debate over the contrast between high SCT rates on essential goods such as automobiles and the absence of such levies on luxury yachts. Automobiles, for example, continue to carry substantially higher SCT rates, but the change is seen as partially addressing this disparity.
Turkey’s Ministry of Finance has sought to expand revenues to reduce the budget deficit, with Finance Minister Mehmet Simsek warning in July that the government’s 2025 target of limiting the deficit to 3.1 per cent of GDP “may not be reached because revenue performance isn’t as strong as expected”.
Since taking office more than two years ago, Simsek has introduced multiple new taxes, while spending has shown little sign of slowing.
Special Consumption Tax revenues remain a major source of income for the state. Turkiye Today reports that the country collected ₺1.02tn ($24.48bn) in SCT revenues between January and July 2025, accounting for 17.89 per cent of total tax income. While yachts represent only a small fraction of this figure, the government expects the revised rate to contribute an additional ₺2–3bn annually.
The economic impact of the new tax is expected to be felt across the marine sector. For yacht buyers, the cost of acquisition will rise significantly — for example, an 8 per cent levy adds roughly $80,000 (about ₺3.3m) to the price of a $1m vessel, before VAT and other expenses. Some mid-range buyers may end up choosing to delay purchases or downsize, while others may turn to the second-hand market to avoid new charges.
Marina operators and charter companies are also anticipating effects. Analysts suggest that rental rates may increase by 5–10 per cent, potentially reducing competitiveness against regional rivals such as Greece and Croatia. Slower inflows of new vessels could lower occupancy in popular marinas in Bodrum, Göcek, Marmaris and Antalya, with knock-on effects for local economies dependent on fuel sales, maintenance and crew employment.
Some foreign yacht owners could also choose to register vessels under other flags to mitigate local excise costs, raising compliance challenges for regulators.
Despite potential headwinds, Turkey remains a leading global yacht producer. According to the Global Order Book 2025, the country ranks second worldwide with 146 superyacht projects under construction, averaging 43.9 metres in length, and holds 12.9 per cent of global orders by number and 14 per cent by total length. Between January and August 2025, Turkey’s ship, yacht and services exports totalled $1.25bn.
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