Although Cyprus has much to offer in terms of infrastructure and maritime administration ultimately the bottom line is costs. In terms of registration fees and taxes, Cyprus is considered to be among the most competitive shipping centres in the world. The fees listed below are lower than those of Cyprus’ main competitors.
[<strong>Fees and Dues</strong>]
Ocean Going Commercial Cyprus Ships
For Ocean Going Commercial Cyprus Ships no fees are imposed for the registration of ships and mortgages. The only fees and dues imposed are those included in the Merchant Shipping (Fees and Dues with respect to Ocean Going Commercial Cyprus Ships) Regulations of 2019 (P.I.322/2019).
An unofficial translation into the English language of these Regulations is attached to Circular 16/2019 dated 2 October 2019 which can be found here.
Non-Ocean Going Commercial Cyprus Ships
The fees and dues required to be paid for Non- Ocean Going Commercial Cyprus Ships are those prescribed in the First Schedule of the repealed Merchant Shipping (Fees and Taxing Provisions) Laws of 1992 to 2007, which is still in force until its full repeal and replacement.
An unofficial translation into the English language of the First Schedule can be found here.
Cyprus Registry Maintenance Annual Fee
An annual fee of Euro 300,00 is payable on the registration of a Cyprus ship (whether Ocean Going or Non- Ocean Going Commercial Cyprus Ships) and annually for subsequent years by the 31st March of each year.
Please refer to the First Schedule of The Merchant Shipping (Fees and Taxing Provisions) Law of 2010. A calculator for the tonnage tax (under the new tonnage tax system) for qualifying owners and charterers of Cyprus and foreign ships is available in this page. Information about the new Cyprus Tonnage Tax System can be found here.
Terms of payment
The tonnage tax is payable on 31st March each year. Late payment results in the imposition of a 10% surcharge on the chargable and leviable amount of tonnage tax for every year of the delay or part thereof, until the final discharge of the chargeable and leviable tax.
Reduction of Tonnage Tax
Reduction of the tonnage tax is granted for Owners and Charterers of Cyprus and Community ships in the cases listed below:
If a ship is laid up for a period of at least 3 months the tonnage tax payable is equal to 25% of the tonnage tax rates for the period during which the ship is laid-up, provided that the Shipping Deputy Ministry is duly notified not later than 3 months from the commencement of the lay- up period.
If the ship is rendered inoperative for a period of at least 3 months due to her judicial arrest, or by act of piracy, or armed robbery, or by force majeure, then the tonnage tax payable is equal to 25% of the tonnage tax rates for the period during which the vessel is inoperative.
Section 8 of the Merchant Shipping (Fees and Taxing Provisions) Laws, 1992-2007 provides for the reduction and refund of the tonnage tax in the cases listed below.
If the ship is laid up for a period of more than 3 consecutive months the tonnage tax payable is reduced by 75 percent for the period during which the vessel is laid-up, provided that the Department of Merchant Shipping is duly notified not later than 3 months from the commencement of the lay up period.
OCEAN GOING VESSELS
NON OCEAN GOING VESSELS
|Cyprus Registry Maintenance Annual Fee|
|Examination of an application for the registration of a vessel in the Register of Cyprus Ships |
|Examination of an application for change of the vessel’s name |
|Approval and change of the vessel’s name |
|Issue of a provisional, permanent or parallel certificate of registration |
|Granting of ship’s carving and marking note |
|Issue of transcript of register |
|Radio Licence Registration Fees*|
|Radio Licence Installation Fees**|
|Radio Licence Amendment Fees|
|Radio Licence Renewal Fees*|
|Issue of Continuous Synopsis Record |
*The relevant radiocommunications fees with respect to Cyprus ships in accordance with The Radiocommunications (Fees) Regulations of 2004 until 2012 are as follows (see relevant Circular 4/2016
dated 23 February 2016):
**For various other services or for the issue of certain certificates other minor fees are also payable.