Shipping

Cyprus as a maritime centre

Cyprus is the third largest island in the Mediterranean Sea, located at the eastern edge of Europe and serving as a crucial hub for shipping routes connecting Europe, Asia, Africa, and the Middle East. It is one of the most active regions in the maritime industry. The Cypriot shipping sector is highly regarded globally, boasting the 11th largest fleet worldwide and the third largest in Europe. Over 20% of the world’s third-party managed fleet is operated by companies based in Cyprus.

The Cyprus flag is recognized as a top-quality sovereign flag, fully compliant with all safety and security standards set by the Paris and Tokyo Memoranda of Understanding (MoUs), and is listed on the “White List” of both MoUs. Cyprus plays a significant role in shaping global shipping policies and maintains a strong presence in international maritime organizations such as the IMO, the ILO, and the European Union.

Cyprus also offers a comprehensive and favorable Tonnage Tax System, approved by the European Union, which applies to ship owners, charterers, and ship managers. This system exempts these entities from all profit taxes and instead imposes a tonnage tax on the net tonnage of qualifying vessels at substantial rates. Additionally, there is no tax on shipping profits from specific qualifying activities, such as profits from the sale of qualifying ships or dividends paid from profits made from qualifying shipping activities.

HOW WE CAN ASSIST

Through the Shipping Deputy Ministry, which was established on the 1st of March 2018 and the Registrar of Companies in Cyprus, we undertake to provide the following services:

  • Incorporation of shipping companies
  • Ships/ Small Vessel registration and deletion
  • Drafting/ reviewing/ negotiating commercial shipping contracts
  • Drafting/ reviewing/ registering mortgages and deeds of release
  • Legal and tax opinions on matters concerning the Cyprus flag

 

Through our well-established network we can assist with the incorporation of shipping companies in foreign jurisdictions as well as with registration and deletion of vessels and yachts from foreign jurisdictions.

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