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Shipping in Cyprus

Cyprus Shipping & Ship Registration

The Cypriot Maritime Registry is currently one of the largest in the EU and the 10th largest worldwide.
Moreover, Cyprus is the largest third party ship management centre in the EU.

The country’s unique geographical position, the advanced infrastructure and services, together with its very attractive shipping taxation system and its other competitive advantages, make Cyprus the ideal location for ship owning, ship management, ship chartering and ancillary shipping related services.

As of 24 March 2010, the Tonnage Tax System (TTS) was introduced with the Merchant Shipping (Fees & Taxing Provisions) Law 44(I) of 2010 with effect from 1 January 2010 and covers the three main “maritime transport” activities, namely: ship owning, ship management (crew and technical management) and chartering.

Benefits to ship owning, ship management, ship chartering and auxiliary shipping related services:

  • The latest EU-approved Tonnage Tax System (TTS) with no direct link to corporate tax;
  • Competitive ship registration costs and fees;
  • No crew or officer nationality restrictions;
  • 28 Merchant Shipping Bilateral Agreements;
  • Signatory to all international maritime conventions on safety, security and pollution prevention;
  • Full protection for financiers and mortgagees;
  • White List of Paris and Tokyo MOUs;
  • No tax on qualifying shipping activities other than the “Tonnage Tax”;
  • No tax on shipping profits made from qualifying shipping activities, including profits from the sale of qualifying ships;
  • No tax on dividends paid out of profits made from qualifying shipping activities;
  • No tax on wages or benefits of seafarers on qualifying Cyprus flag ships;
  • Approximately 50 Double Tax Avoidance Treaties;
  • No estate duty on the inheritance of shares in a ship owning company;
  • No stamp duty on ship mortgage deeds or other security documents;
  • Efficient, qualitative and reliable services to the shipping industry; and
  • Strong involvement in international shipping forums (IMO, ILO) and the EU.

Yacht scheme:

Yachts are not covered by the Merchant Shipping Law, but operate on the basis of the guidance issued by the Cyprus VAT authorities in cooperation with the tax authorities, both of which aim to make Cyprus one of the most attractive jurisdictions for yacht registration within the EU.

F.C.I. LTD is ideally positioned  to provide you with a complete service from advisory during the early stages, throughout the process of incorporation or formation and maintenance of your business’s smooth operation in Cyprus.

 

Contact us: info@fci.com.cy  tel: +357 22 673 800

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