Cyprus: One of the leading maritime centers of the world
Over the last 30 years Cyprus has emerged as an international shipping centre.  The Cyprus Maritime Industry started developing in 1963 with the introduction of laws that dealt with the registration of ships, sales and mortgages, masters and seamen

The double tax treaties signed and the numerous bilateral agreements in conjunction with the tax benefits introduced triggered the tremendous expansion of Cyprus shipping Registry, both in terms of number of vessels registered as well as gross tonnage. 

The Cyprus registry today, ranking sixth among international fleets with 2700 vessels of over 26 million gross tonnages.  Cyprus has also develop to be one of the largest third-party ship management centers with about 100 ship-management companies.

Tax and other incentives

Favorable tax and other incentives have played an important role in the development of Cyprus as an International business shipping and ship-management centre.

Cyprus offers complete tax exemptions on all profits and dividends arising from shipping operations. Essentially the relief provides that:

  • No income tax is payable on the profits derived from any shipping activity by a Cyprus shipping company which owns or charters ships under the Cyprus flag

  • No capital gains tax is payable on the sale or transfer of a ship or shares in a shipping company

  • No income tax is payable on the salaries of officers and crew of Cyprus ships operating in international waters.

  • No stamp duty is payable on bills of sale and mortgages on ships and related documents.

Requirements for registration a vessels under the flag of Cyprus

 The 50% of the shares in the ship must be owned:

  • By Cypriots, or

  • By a company registered in Cyprus irrespective if such a company is totally owned by foreigners or not

  • Or with special permissions of the Council of Ministers.

The ship must be under 17 years of age, or if its over 17 to 20 years of age provided that:

  • The vessel undergoes a special inspection,

  • Or the vessel is managed from Cyprus

If the ship is between 20 to 23 years of age, it may be registered provided that:

  • The beneficial owner has at least another two vessels registered under the Cyprus flag, each having a gross tonnage of over 1000 tons with a good safety record and whose average age, including  the vessel to be registered, does not exceed 17 years or

  • Its beneficial owner is Cypriot.  The vessel undergoes a special inspection.

If the ship is over 23 of age, it may be registered provided:

  • It is owned by Cypriots permanently residing in Cyprus, or

  • By a Cypriot company

  • The vessel undergoes a special inspections

  • The vessel is managed from Cyprus.
     

Services to the Shipping Industry

We can help our clients with the provision of services in the following areas:

  • Registration of ship-owning and ship-management companies

  • Ship registrations, deletions, transfers and mortgages

  • Audit, accountancy and taxation advisory services

  • Financial and management services

  • Human resource advisory

 

 

 

 

 

 

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