REGISTRATION OF SHIPS AND YACHTS UNDER CYPRUS FLAG
Cyprus is the 3rd largest maritime country in the European Union and 6th worldwide. Being an island, situated in the crossroads of three continents Cyprus is an ideal location for registering and managing ships. Coupled with other significant advantages and tax breaks, Cyprus justifies its position in the rankings as a maritime nation and it is increasingly being used by many investors as a vehicle for asset protection and tax optimization, especially after its accession to the European Union in 2004.
Cyprus shipping company
The usual method used to register a ship in Cyprus is through the registration of a Cyprus limited company which in turn has full ownership of the ships. The company may be registered using nominee directors and shareholders thus protecting the beneficial owners identity. The incorporation process can be completed in a few days and the procedure for the registration of the ship may begin in the Cyprus Register of Ships which is administered by the Department of Merchant Shipping.
Tax and other benefits
- No income tax is payable on the profits derived from shipping activities by a Cyprus shipping company which owns or charters bareboat ships under a 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 the officers and crew of Cyprus ships
- No stamp duty is payable on bills of sale and mortgages on ships and related documents
Tonnage tax
Cyprus registered companies that generate profits from shipping activities of ships under Cyprus flag are liable to tonnage tax. This is a special tax payable by shipping companies based on the tonnage of ships under their management.
Ship management companies
These are companies established and operated in Cyprus offering full management services to ship-owners worldwide and are engaged in chartering, crewing, ship broking and similar activities. The same advantages availed to Cyprus shipping companies are also enjoyed by ship management companies.
