MARITIME LAW OVERVIEW
Cyprus has a well-established maritime infrastructure which offers many advantages to ship owners and business people in this industry.
Shipping upholds a significant role in the Cyprus economy and after overcoming the economic crisis in 2013, the shipping finance has flourished. The Republic of Cyprus is a member of the IMO, the Council of Europe, the Commonwealth and many other international organizations. In addition, it is a signatory to many international maritime conventions and has concluded bilateral agreements of cooperation in merchant shipping and double tax treaties with many countries.
Some of the advantages of registering a Cypriot shipping company are:
- No tax on profit from the operation or management of a vessel registered under the Cyprus flag or shares in a ship owning company;
- No capital gains tax on the sale of a Cypriot vessel or transfer of shares in a Cypriot ship owning company;
- A liberal foreign direct investment programme (which allows for 100% foreign involvement in many sectors)
- No exchange control;
- Over 50 double taxation treaties in effect, with more under negotiation;
- No estate duty on inheritance of shares in a ship owning company;
- No income tax on emoluments of officers and crew;
- No stamp duty on ship mortgage deeds.
Given the considerable advantages offered to Cypriot ship owners and ship management companies, it is not difficult to see why Cyprus has grown to be one of the largest third-party ship management centres in the world. In fact, Cyprus represents 20% of the world ship management market and several of the largest management companies in the world operate out of this small island.
PRACTICE OVERVIEW
Our team of lawyers in Cyprus are experts in the field of maritime law and offer a professional and efficient service utilising the taxation advantages available. We give clear and comprehensive advice on the following matters:
- Maritime commerce
- Choice of flag
- Vessel registration
- Employment issues specific to shipping companies
- Salvage
- Collision
- Loss of or damage to cargo
- Ship sales and purchases
- Freight disputes
If you wish to speak to a member of our Cyprus Law Firm, then please contact us.