1. Can I apply directly to the Registrar of Cyprus Ships?
In accordance with the relevant law in force all registry transactions with respect to ships must be effected by a local lawyer.
2. What are the conditions of Ownership a Cyprus ship?
A vessel may only be registered in the Register of Cyprus Ships if:
A) more than fifty percent (50%) of the shares of the ship are owned:
- by Cypriot citizens or
- by citizens of other Member States of the European Union or other contracting party to the European Economic Area Agreement, who in the instance of not being permanent residents of the Republic, will have appointed an authorised representative in Cyprus.
B) the total (100%) of the shares of the ship are owned by one or more corporations, which have been established and operate:
- in accordance with the laws of the Republic of Cyprus and have their registered office in the Republic, or
- in accordance with the laws of any other Member State and have their registered office, within the European Economic Area and which will have either appointed an authorised representative in Cyprus or the management of the ship is entrusted in full to a Cypriot or a Community shipmanagement company having its place of business in Cyprus, or
- outside Cyprus or outside any other Member State but controlled by Cypriot citizens or citizens of Member States and have either appointed an authorised representative in Cyprus or the management of the ship is entrusted in full to a Cypriot or a Community shipmanagement company having its place of business in Cyprus.
3. What are the economic benefits of Cyprus registry?
1. No tax on profits from the operation or management of a Cyprus registered vessel or on dividends received from a vessel owning company.
2. No capital gains tax on the sale or transfer of a Cyprus-registered vessel or the shares of a vessel owning company.
3. No estate duty on the inheritance of shares in a shipowning company.
4. No stamp duty on ship mortgage deeds or other security documents.
5. Double tax treaties with 42 countries.
6. No exchange control and freedom of movement of foreign currency
7. Full protection for financiers and mortgagees.
8. Favourable tax regime for ship management.
9. Low set up and operating costs for companies.
4. What documents are required for the registration of vessels under Cyprus flag?
List of documents can been found here
5. What position does the Cyprus fleet hold globally and in the European Union?
At the end of 2007 the Cypriot merchant fleet ranked tenth in the world with 1806 ocean-going vessels of a gross tonnage of 20.270.664.Cyprus has the third largest fleet within the European Union with a percentage of 12,2% of the total fleet of the 27 EU member states.
6. Which are the advantages of Cyprus as a maritime center, besides the economic benefits?
1. EU flag
2. Classification of Cyprus flag in the White List of the Paris and Tokyo MOUs resulting in fewer inspections of the ships and less delays at the ports of both MOUs.
3. Maritime offices in New York, London, Rotterdam, Piraeus, Brussels and Hamburg offering services to Cyprus ships.
4. A network of inspectors of Cyprus ships, covering important ports worldwide.
5. Signatory to all international maritime conventions on safety and pollution prevention.
6. Bilateral agreements with 29 countries in the field of Merchant Shipping.
7. Efficient and qualitative provision of services by the Department of Merchant Shipping.
7. Which Shipmanagement companies are eligible to benefit from the taxation of shipmanagement services or to be taxed at the rate of 4.25% on their income?
1. Have an office in the Republic of Cyprus.
2. Provide shipmanagement services (crewing and/or technical and/or commercial ship management services) to the ships they manage, for a period longer than one month.
3. Be staffed with a sufficient in number and qualifications personnel.