Greek governmental circular 1028/22.02.2017 was issued at the end of February 2017, whereby it is clarified that insurance policies concluded by:

i) Greek and foreign shipmanagement companies of art. 25 of law 27/1975 and

ii) Shipowning companies of vessels flying a foreign flag of art. 26 of law 27/1975 which (the vessels) are managed by companies of art. 25 as above

are exempt from insurance premium tax. In this way, it appears that the longstanding uncertain position as to whether such tax was indeed applicable to shipmanagement and shipowning companies as above has come to an end. It is self-understood that the exemption is only regarding insurance policies of vessels (e.g. P&I, Hull & Machinery, IV etc.). We understand that the aforementioned tax exemption encompasses insurance policies concluded both with Greek and foreign insurance companies or mutual associations as well as shipmanagement / shipowning companies in general and not only those of art. 25 and 26 respectively. For the avoidance of doubt, however, we note that our company does not purport to offer tax advice and it may be useful to seek legal advice accordingly. Please click on the below link to access said circular: https://www.taxheaven.gr/laws/circular/view/id/25695