Shipping

Cyprus is an internationally renown shipping centre. The island’s merchant fleet has been growing steadily, reaching a top 3 position in Europe and a top 10 global ranking.The unique geographical position at the juncture of three continents, the advanced infrastructure and services, as well as the very attractive taxation and other advantages makes Cyprus an ideal location for ship owning, ship management and ancillary shipping-related companies.

Sector Synopsis

The merchant fleet of Cyprus is the 3rd largest in the European Union and the 10th largest in the world
Nearly 1,000 ships exceeding 21 million gross tonnage are registered in Cyprus
More than 130 ship owning, ship management and shipping related companies maintain offices in and conduct international activities from Cyprus collectively controlling a fleet of 2,300 ships with 46 million gross tonnage
Shipping contributes about 5% to the Gross Domestic Product (GDP) of Cyprus (2011)
The Cyprus shipping sector employs approximately 4000 people ashoreand approximately 40,000 seafarers onboard Cypriot flag ships

New Shipping Tonnage Tax System

The European Union´s approval of a fully revised and upgraded Cyprus Shipping Taxation System in March of 2010 is a turning point for Cyprus and European Shipping. The new Shipping Taxation System covers the three basic Shipping activities in International Shipping, namely Shipowning, Shipmanagement (including Crew Management) and the Chartering of vessels. The benefits of the new system may soon render Cyprus, the “Shipping Metropolis” of Europe. Shipowners are exempted from Income Tax and are automatically taxed under the Tonnage Tax System. Shipmanagers and Charterers can exercise their option to be taxed under the Tonnage Tax System. You may view CIPA’s shipping Filmette at: xxxx or more information please visit: www.mcw.gov.cy.

Key Industry Players

Some of the world’s largest international ship management companies have headquarters in Cyprus, including:

Bernhard Schulte
Columbia Shipmanagement Ltd
Dartmonth Shipping Limited
Hanseatic Shipping Company Ltd
Ocean Challenge
OceanWide
Schoeller Holdings Ltd
Synergy

Supervisory/Regulatory Framework

As a member of the European Union (E.U.), Cyprus has a regulatory framework that is harmonized with E.U. requirements pertaining to the

acquis communautaire. Legislation relating to the Shipping Sector includes:

Merchant Shipping Laws, 1963-2005 (Registration of Ships, Sales and Mortgages)
Merchant Shipping Laws, 1992-2007 (Fees and Taxing Provisions)
Merchant Shipping Laws, 1963-2002 (Masters and Seamen)

Competent Authority

The Cyprus Department of Merchant Shipping (www.shipping.gov.cy)

Trade Association

The Cyprus Shipping Chamber is the trade associationof the shipping industry in Cyprus, (www.csc-cy.org) promoting the interests of Cyprus shipping and furthering the reputation of the Cyprus flag, among other priorities.

Advantages/Opportunities

Excellent geographical position at the crossroads of Europe, Africa and the Middle East
“Open Registry” (one of two countries in the European Union),allowing non-Cypriot citizens to register ships under the Cypriot flag
Advanced maritime infrastructure (two deep sea multipurposeports in Limasol and Larnaca)
Sound international relations
Favourable taxation regime and other benefits for shipowners and crew members
Low ship registration fees
No income tax, estate duty or capital gains tax for
Cyprus-registered ships
No stamp duty on documents or mortgage deeds
Anonymity of beneficial owners through nominee or trusteeshareholders
Recognition of Competence Certificates from many countries
Easy deletion from the Cyprus Shipping Register

Latest News

CIPA Event for the World Bank's Doing Business Report 2012 - Jan 27, 2012

Press Release - Submission of Financial Statements of Companies in English - Dec 22, 2011

MoU between CIPA and Invest in Greece - Dec 14, 2011

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