Cyprus plays a prominent role as a leading shipping and ship management centre with a sound maritime infrastructure, favourable tax regime and competitive ship registration and tonnage tax rates. The Cypriot maritime registry is today one of the largest in the EU and the 10th largest worldwide, as well as the biggest third-party ship management centre in the EU.
On 29th April 2010 the Cyprus Parliament enacted the long awaited new shipping legislation. The new Merchant Shipping Law, which applies from 1 January 2010, extended significantly the scope of the Tonnage Tax (TT) regime and enhanced the position of Cyprus as a maritime centre.
- Registered Companies in Cyprus, which own and operate vessels under the Cyprus Flag, enjoy full income tax exemption for the income derived from the operation of these ships in international waters.
- No income tax is paid on the salaries of the captain, officers and crew of a vessel registered under the Cyprus Flag in terms of earnings received for services rendered from such shipping company.
- Favourable tonnage tax scheme based on the vessel’s net tonnage.
- No stamp duty on ship mortgage deeds or other supporting documents.
- low set up and operational costs for Cyprus company.
Ownership options under the Cyprus flag
A ship may only be registered in the Register of Cyprus Ships if:
(1) more than fifty per cent (50%) of the shares of the ship are owned:
- by Cypriot citizens, or
- by citizens of other Member States (EU/EEA) who in the instance of not being permanent residents of the Republic of Cyprus will have appointed an authorised representative in the Republic of Cyprus, or
(2) the total (100%) of the shares of the ship are owned by one or more corporations, which have been established and operate:
- in accordance with the laws of the Republic of Cyprus and have their registered office in the Republic, or
- in accordance with the laws of any other Member State (EU/EEA) and have their registered office, central administration or principal place of business within the European Economic Area and which will have either appointed an authorised representative in Cyprus or ensured that the management of the ship is entrusted in full to a Cypriot or a Community ship management company having its place of business in Cyprus, or
- outside Cyprus or outside any other Member State (EU/EEA) but controlled by Cypriot citizens or citizens of Member States and have either appointed an authorised representative in Cyprus or ensured that the management of the ship is entrusted in full to a Cypriot or a Community ship management company having its place of business in Cyprus.
VAT PAID STATUS
All yachts built in or brought into the EU on or after 1 January 1985 must be able to prove their VAT paid status. A yacht built before this date is deemed to have VAT paid status if it was in private ownership and within the EU at midnight on 31 December 1992
Incorporation of a shipping company
Choosing to register your yacht under a company in your jurisdiction of choice is a lower risk option as a limited liability company is considered a separate legal entity, providing an extra layer of protection. We handle all paperwork and procedure and arrange for the incorporation of your company with a name of your choosing. The total of 100% of the shares of the Yacht should be owned by one or more corporations which have been established in the jurisdiction the Yacht will be registered in.
Other services may include, but are not limited to:
Tax advise Issuance/Renewal of Certificates Administration Cyprus Yacht Leasing Scheme
If you would like to speak with someone directly
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