This is a question that maybe the other Greek members of the forum can answer.
I have noticed that many A/C in Greece, both ultralight and normal, are kept on Italian registration. This is a trend I have not noticed anywhere else in Europe. What is the reason? Are the Italian authorities easier to deal with? Are there some tax benefits?
FWIW I’ve seen several aircrafts in Greece on G reg. I don’t think there’s any tax benefit since EU assumes no import, so probably the reason is CAA. I kept mine aircraft on SE registry rather than putting in on Croatian for that reason.
When I was in Greece many years ago you had to pay import duties for vehicles. However I don’t know if that has changed or if it did include aircraft.
@petakas will have the detail but the likely reason is Greece’s heavy tax, whereby they allocate an “equivalent income value” to the aircraft (or a boat) and tax you on it annually as if it was income. It is an extremely aggressive way of collecting tax (for obvious reasons e.g. what if you bought the plane with savings and no longer have much income). It is however applicable only to Greek reg (SX-reg) aircraft.
So why isn’t all of Greece foreign reg? There are downsides of that e.g.
Its not only for Italian reg but N’ reg as well and also some from Balkan countries too.
One of the reasons is our CAA who are a bit more bureaucratic when it comes to paperwork especially with ultralights’ regulations which (for SX’ register) are a bit late in catching up with up to date legislation in the CAA. Light (not ultralight) aircraft regulations are imposed there. (406ELT’s, VHF station licenses, noise certificates, Mode C, maintenance paperwork etc.)
Mainly you’ll find ultralights that use I’ reg.
There are countries which issue paperwork easier than Greece of require less paperwork, especially for ultralights.
I don’t know the details but some people who have ties with other countries (business, residence, papers) sometimes are better off keeping it in foreign register as long as they can keep happy the tax authorities in a possible check. Its not the CAA usually but the tax authorities which must be satisfied its legit.
Its similar with road vehicles. Either the (Greek) driver has some sort of relationship with the registry country or else under a visitor status you must prove it is under a temporary visit in Greece for whatever this means and however this can be justified …
For foreign visitors there is no issue. For Greece permanent residents/nationals there might be.
The downside is that for processing important things with such aircraft you need to visit the country where paperwork is processed or pay for personnel to fly over to Greece of inspections etc. Also some times you may get asked at some airports for things required in Greece even though country of register does not require them.
I’ve heard stories of I’reg ultralights being asked for the “VHF radio station license” (something required in Greece) which Italy CAA does not require them.
Only after Italy national aeroclub sent a waiver document to that airport CAA the aircraft was released to fly back to the Greek ZZZZ field where it came from.
Higher landing/parking fees in Greek public airports are only for non European register.
To explain our chaotic tax system ,here is how it goes:
The State cant control (or doesnt want) Income Tax or VAT evasion.Therefore instead of puting 1 policeman at check of every 1 citizen,the citizen has to Declare each year his acrued wealth and permanent possession of luxury goodies such as cars,boats,airplanes,houses,maids,swimming pools etc.For every such property they implement a kind of complex fictional value tax depending on horsepower,engine capacities,house or pool size etc.
An antique humble C172 is calculated at “presumed hidden income” of 70.000Euros wich immediatly translates (35% min taxation) a tax of 24.500Euros/year.Now consider that the lucky owner propably possesses a house and a car,then the total number skyrockets.
Additionaly ,they recently implemented a “Luxury Life Style” tax which for our C172 goes 12% of the 70.000=8.400Euros direct tax.
Ultralights (after decades of persecution and clandestine existence) managed to stay at the level of 20.000Euros “presumed hidden income” + 2.400Euro “Luxury tax”.
You dont need to be a rocket scientist to understand that SX-reg is a fastly diminishing relic And Yes Peter,the benefit to enjoy faster PPR during weekends at Military airports
doesnt compensate for the above nightmare.
Now add slow bureaucracy+CAMOs+FRAPORT and you have the most enjoyable blend of aviating.
Very well explained by @MedFlyer
MedFlyer you also forgot to mention tuition fees for (parents of) children who go to private schools ! This is also generates a “presumed hidden income”. They are automatically reported to the state by the custom bank payment codes/accounts per school and payee’s vat number.
Privately owned SX’reg aircraft in Greece is something inconceivable nowadays. Except of the aerial works or flight school etc. workhorses (the majority) the rest belong in Aerolcubs (non profit aero-athletic organizations), leasing companies, etc. etc.
I am very well aware of the “presumed hidden income” tax (τεκμήριο) as I had to suffer from that myself when I used to own a car in Greece and didn’t declare any income. The Greek tax office didn’t seem to be able to realize how can I afford to own a car without declaring any income, even after I presented them with proof that I am a permanent resident of Sweden and I earn and declare all of my income there.
Anyway, my original question was more related to to the fact that there are many I-regs, in comparison to other regs, not why there are foreign regs ;) I understand now that the main reason is ultralight regulations for which the HCAA is a bit late catching up with.
Yes I believe the story is mainly about ultralights and the way Hellenic CAA handles them, but it was a “good” excuse to bring up the issue about taxation which in the case of this discussion is off topic, but the hottest topic of this decade for any loyal binding citizen GA flyer in Greece, the last of the Mahicans.
Dimme,to conclude the story,the Italian registration for ULs is the most affordable and easiest for Greeks.The Czech register used to be likewise,allthough I hear about some difficulties recently.
