➣ WHAT IS A TAXI SERVICE LICENCE IN GREECE?
A Taxi Service Licence is a paper issued by Department of Transport & Main Roads that allows the holder to provide a taxi service in a defined area. The holder of the licence can be independent or affiliated with a taxi company holding a Taxi Service Contract. However, someone other than the owner can run the taxi that operates on a licence, which makes it a passive or semi-passive investment opportunity. See some benefits of investing in taxi industry here.
These licences can be transferred and hold a capital value. Their renewal is automatic and effectively perpetual. The Greek Government regulates the taxi industry and specifies such items as areas of operation, the numbers of taxis in those areas, maximum fares, types of vehicle, and standards of service.
➣ HOW DOES A TAXI LICENCE EARN AND INCOME (WITHOUT YOU DRIVING A TAXI)?
There are two ways to generate an income from a taxi licence. Either method is currently returning in around 10 to 14% annual or more tax included, paid to you in monthly basis. It is important to note that this calculation is only assessing income, and does not assess any capital gain available which has historically been one of its most attractive features as an investment!
1.LEASING – Leasing a taxi licence is a passive investment. The licence owner leases their license to a Taxi Company or individual operator who provides the vehicle. In that case the owner has nothing to do except receiving the fixed monthly income from the Taxi Company.
2.MANAGEMENT – This alternative is for the owner for the Taxi Service Licence to provide the taxi vehicle as well, and have an operator manage the vehicle and license (including dealing with drivers and arranging vehicle maintenance). Instead of a passive investment, the licence now becomes a taxi business with paper work and money deals – an active asset.
➣ HOW SECURE IS MY INVESTMENT?
Taxi owners are in many ways the life blood of our nation, ensuring that workers and students get from their homes to their places of work quickly and affordably. People with special needs, aged and the “tsunami” of tourists in Greece can’t survive without taxi cabs. The industry has been built over 95 years by hard working entrepreneurial business people. Greek Government have always supported regulation of the taxi industry in this state, and this is reinforced by the recent National Competition Policy review. The Parking and Sustainable Transportation Division encourages the use of taxis and has taken steps to facilitate their use. Taxi transport is very competitive and competes with all forms of public transport. First taxi appear on Greek market in 1960 and until today, history proves that taxi service licence is a guaranteed ‘nest-egg’ at retirement. See here how the taxi remains need of people even at war!
➣ WHAT ELSE DO I NEED TO KNOW BEFORE I BUY A TAXI LICENCE?
Subject to the granting of Operator Accreditation, any person, partnership, company, trust or superannuation fund can own a Taxi Service Licence. A Transfer of a Taxi Service Licence Notification form must be completed and lodged with Department of Transport and Main Roads. You don’t have to worry about it as far as you have choose the management operation option so we undertake everything on your behalf. However, Yellowinvestment recommends and strongly suggests that you seek your own independent legal and business advice prior to investing in the taxi industry including purchasing and leasing.
➣ THE PROCESS: