Ship registration under the Cyprus flag
Located on the crossroads of three continents, Cyprus has emerged into a growing maritime centre. The island’s geographical location recently combined with a number of financial incentives by carefully designed government planning have made the Cyprus flag widely attractive amongst the key players in the shipping industry.
The Cyprus Registry currently ranks tenth in the world accommodating a 20 million tonnage merchant fleet & third in the European Union. Ship-management companies operating in Cyprus manage one fifth of the global third party managed fleet. An effect of this has been that shipping industry now amounts to 7% of the country’s GDP.
Ship-owning companies, ship-management companies and chartering companies can benefit from a number of significant advantages by provisionally, permanently or parallel registering under the Cyprus flag:
- International Status: The Republic of Cyprus is a developed, democratic country, full EU member since 2004, party to all the important maritime conventions and with many significant bilateral agreements in merchant shipping.
- The Cyprus Department of Merchant Shipping (DMS) operates a modern and efficient service with maritime offices in all the major shipping centres of the world and with a developed network of local inspectors covering important ports worldwide.
- Shipping companies in Cyprus can enjoy a liberal FDI, low set up and operating costs for companies, no exchange control & freedom of movement of foreign currency.
- Modern and efficient legal, banking and accounting services
- Taxation: A very competitive new Tonnage Tax System, no income tax, no tax on profits, low corporate tax, no tax on dividends, no stamp duty on ship mortgage deeds, no inheritance tax on the inheritance of shares in shipping companies, double tax treaties with 45 countries
- An upcoming player in Energy after the discovery of major gas fields within Cyprus exclusive economic zone
- An Advanced telecommunications network
- Highly educated , multilingual personnel
- Long term economic growth prospects and good quality of life
- Modern Ports and a new high-standard, exclusive Yacht Marina.
The application for registration of a ship under the Cyprus flag must be prepared and submitted by a practicing lawyer of the Republic to the Minister of Communications and Works through the Registrar of Cyprus Ships.
HSS Shipping Services can advise and assist in the registration of ships under the Cyprus Flag and provide any relevant information regarding such registration or act as a liason with the Cyprus Register or the Department of Merchant Shipping for any specific requests or needs of its clients.