Cyprus, an International Maritime Center
FCI-PlusPoint has a specialised knowledge and experience in the formation and administration of shipping companies that cover ship-owning, ship management companies, fleet leasing companies, freight forwarders, and the like.
We offer value-added services and advice on formation of an entity, tax planning, local representation, establishment of fledged office, legal and accounting services, taxation services, registration of a vessel in Cyprus.
Shipping in Cyprus
Cyprus is an internationally recognized shipping center. Cyprus’s accession to the European Union in 2004, tax reform and government policy further strengthened the reputation and overall image of the Cypriot flag and the infrastructure of Cyprus shipping in general.
CYPRUS’ SHIPPING SECTOR CURRENT FACTS ARE:
- Over 150 ship-owning, ship management, chartering and shipping related companies controlling a merchant fleet of 2,300 vessels with 50 million gross tonnage, while employing approximately 4,500 employees and 55,000 seafarers. More than 1,000 registered vessels with 21 million gross tonnage are registered under the Cyprus flag.
- 10th largest merchant fleet in the world
- 3rd largest merchant fleet in the EU
- Ship management Centre amongst top three in the world
- the largest third party Ship management Centre in the EU Cyprus has an EU-approved “Open Registry” regime with a very wide and legally endorsed Tonnage Tax System (TTS), which has been introduced with the Merchant Shipping Law in 2010, and covers the three main “maritime transport” activities, namely, ship-owning, ship-management (crew and technical management) and chartering.
Ship with Cyprus flag owners fall automatically under the new tonnage tax regime, whereas ship owners of foreign flag ships, charterers and ship managers may opt to be taxed under the tonnage tax system (TTS) under certain conditions.
ADVANTAGES OF CYPRUS SHIPPING
In addition to the country’s strategic geographical location, Cyprus maintains a wide range of competitive advantages through a high quality maritime cluster, offering efficient and quality services, including:
- EU flag
- No tax on qualifying shipping activities other than “Tonnage Tax”;
- No tax on shipping profits made from qualifying shipping activities including profits from the sale of qualifying ships;
- No tax on dividends paid out of profits made from qualifying shipping activities;
- The latest EU-approved Tonnage Tax System (TTS) with no direct link to corporate tax;
- Cyprus ship registration competitive costs and fees;
- No crew/officers nationality restrictions;
- 28 Merchant Shipping Bilateral Agreements;
- Signatory to all international maritime conventions on safety, security and pollution prevention;
- Full protection for financiers and mortgagees;
- White List of Paris and Tokyo MOUs. Advantages of the Cyprus Tonnage Tax System (TTS);
- No tax on wages or benefits of seafarers on qualifying Cyprus flag ships. Cyprus’ Shipping Sector offers wider industry benefits, which include;
- Approximately 50 Double Tax Avoidance Treaties;
- No estate duty on the inheritance of shares in a ship owning company;
- No stamp duty on ship mortgage deeds or other security documents;
- Efficient, qualitative and reliable services to the shipping industry;
- Strong involvement in international shipping fora (IMO, ILO) and the E.U.