Cyprus is an internationally renowned shipping centre, home to some of the world’s leading names of the global shipping industry. The country’s accession to the European Union, in 2004, further boosted the reputation and overall image of the Cyprus flag and the infrastructure of Cyprus’ shipping in general.
The island’s unique geographical location at the crossroads of three continents, its advanced infrastructure and services, as well as the very competitive shipping taxation and other strategic advantages, make Cyprus the ideal location for ship owning, ship management, ship chartering and ancillary shipping-related services.
Facts about Cyprus’ shipping sector
More than 140 ship owning, ship management and shipping related companies control a merchant fleet of 2,200 vessels, with 50 million Gross Tonnage.
• 10th largest merchant fleet in the world
• 3rd largest merchant fleet in the EU
• 2nd largest Ship Management Centre in the world
• Largest third party Ship Management Centre in the EU
Cyprus has the only EU-approved “Open Registry” Regime with a very wide and legally endorsed Tonnage Tax System (TTS), which was introduced with the Merchant Shipping Law in 2010 and covers the three main “maritime transport” activities: ship owning, ship management (crew and technical management), and chartering.
In summary, advantages of the Cyprus TTS include:
• No tax on shipping activities other than “Tonnage Tax”
• No tax on shipping profits including profits from the sale of ships
• No tax on dividends paid from shipping profits
• No estate duty or capital gains tax
• No income tax for seafarers on Cyprus-flagged ships
• No stamp duties on documents or mortgage deeds