Cyprus is a major ship management centre and its flag holds an envious reputation worldwide. The Cypriot Register now ranks 10th
in size internationally and represents the third largest fleet in the EU. Moreover, the Register is growing, with shipping entrepreneurs attracted to the host of benefits offered by registration under the Cyprus flag and the active promotion of ship management interests by regulatory authorities.
GEOGRAPHY
The strategic location of Cyprus is a major factor in its success. Cyprus is located at the crossroads of three continents and offers easy entrance to and from a multitude of worldwide destinations via air links to all major destinations. Cyprus is also a member of the EU and offers a stable and secure environment from which to conduct business.
INFRASTRUCTURE
The fiscal and economic advantages of registration under the Cypriot flag are underpinned by a highly efficient civil service. Legal,
banking, accounting and secretarial services are of the highest international standards and are strengthened by an effective and efficient legal system which is based on the English legal system. Excellent telecommunications and an educated, multi lingual work force also gives strength to the reputation the island holds.
FINANCE
There are a huge number of financial advantages offered to those registering under the Cypriot
flag:
- Low ship registration fees – Cyprus is considered to be one of the most
competitive shipping centres in the world, offering fees which are lower than
its main competitors. Registration fees
depend upon the type of vessel and its gross tonnage. - No exchange control– free movement of foreign currency.
- Low annual tonnage taxes – calculated according to the type of vessel and the
gross tonnage. - No tax on profits made by the operation or management of a Cyprus flag vessel.
- No tax on dividends received by a ship owning company.
- No income tax on emoluments of officers and crew.
- No capital gains tax on sale of Cypriot vessel or transfer of Cypriot vessel
- No capital gains tax on sale of shares in Cypriot ship owning company and no CGT on transfer of such shares.
- No inheritance tax on inheritance of shares in a Cypriot ship owning company.
Moreover, Cyprus has cemented the fiscal advantages available to those who choose to register on the island by executing a vast array of double tax treaties which number over 40 in total and by executing a significant number of bilateral agreements with
other countries aimed at promoting gracious relations and development of mutual economic interests.
SAFETY
Cyprus has a proven track record when it comes to maritime safety and has implemented a number of effective measures in line with its accession to the EU. High risk vessels are identified with extensive surveys undertaken by the authorities and inspections are undertaken on a global scale, with inspectors of Cyprus ships now operating from 23 important international ports.
AUTHORITIES
The Department of Merchant Shipping in Cyprus is a proactive body which is highly efficient and offers a high quality and speedy service meaning that registration and ongoing operations are unhindered by local bureaucracy.
Michael Chambers and Co. LLC are experts in maritime law and can assist in the registration of vessels under the Cyprus flag as well as creation of shipping companies and supporting ongoing operations. If you wish to speak to one of our lawyers, then please contact us.
