Maritime SAIL UNDER THE CYPRUS FLAG

The island of Cyprus boasts a thousands of years’ worth of history in the maritime business; its strategic position has been utilised by almost all the major civilisations including the Minoans, the Egyptians, the Romans, the French, the British, and the list goes on. It’s no surprise then that the contemporary Cypriot maritime industry is booming and especially beneficial for shipowners from all over the world.

Written by Ioanna Lambrou

The Republic of Cyprus has long been recognised as a centre for sailing and maritime trade. With contemporary and attractive schemes, ship or yacht registration under the Cyprus flag has never been easier or beneficial for those looking for the best global shipping hub and some of the most luxurious and top-of-the-line marinas in Europe. Over 60 ship management companies are in operation on the island, while almost 40,000 seafarers are currently employed through them on the island; making Cyprus one of the top-ranking countries in international fleets and as a ship management centre. Currently, Limassol by itself holds the top spot for the largest third-party ship management centre in the European Union and Cyprus manages roughly 20 percent of the world’s third-party ship management fleet – this means that registering under the Cyprus flag guarantees a seasoned expertise by industry professionals who know what’s best for you and your ship. Read on for some of the countless benefits for shipowners that come with sailing under the Cypriot flag.

In the last decade, Cyprus has climbed the ladder as one of the most desirable countries to immigrate to in the Mediterranean. Its sunny weather, amazing career opportunities, and low income tax rates makes our small island a top destination for business owners and entrepreneurs. Registering a ship or yacht under the Cyprus flag means you get to enjoy a lot of the perks that come with living in Cyprus, including access to the many luxurious marinas around the island. The city of Limassol offers the option between two marinas, the Limassol Marina and the St. Raphael Marina, both fullyequipped and boasting over 40 restaurants, bars, cafés, and shops between them. Ayia Napa, Pafos, Zygi, and Larnaca all have their own marinas, while Limassol, Larnaca, and Pafos all have their own ports as well for larger container ships.

The Technicals

Registering your ship under the Cyprus flag means you can benefit from a low-cost registration fee and zero taxation on profits from the operation or the management of the ship. There’s also no taxation on dividends received from a shipping company, on capital gains by the sale or transfer of the ship, or of the shares of the shipping. Additionally, ships registered under the Cyprus flag receive no estate duty on the inheritance of shares of the company owning the sea vessel and no stamp duty on ship mortgage deeds or other security documents. It should be noted that Cyprus has signed tax treaties with more than 40 countries, in order to protect shipping companies from double taxation and the flag is classified in the White List of the Paris and Tokyo MOUs, which means fewer inspections and fewer delays at the ports of both MOUs.

Registering a ship or yacht under the Cyprus flag means you get to enjoy a lot of the perks that come with living in Cyprus, including access to the many luxurious marinas around the island.

Foreign currency circulates freely and there’s a complete protection for financiers and mortgagees, as well as much lower costs for the establishment and operation of your company. Apart from sailing under an EU country’s flag, registered shipowners get to enjoy services and a wide network of inspectors for their vessels with Cyprus flags from maritime offices in several great sea ports, like New York, London, Rotterdam, Piraeus, Brussels and Hamburg, that offer their services to sea vessels with Cyprus flags.

However, one of our biggest selling points is the constant advancement and betterment of operations in Cyprus regarding seafaring safety and the protection of the environment, making registering under the Cyprus flag quite attractive for those who are eco-conscious.

As mentioned earlier, registering with the Cyprus flag is quite easy and accessible for all; there are three types of registration for Cyprus ships and, before considering joining the vast Cypriot fleet, we suggest you decide beforehand which one of them meets your specific needs: The ‘Provisional’ registration of Cyprus ships applies to ship registrations which last for 6 months. The registration can be renewed once for a further 3 months. The most commonly used, ‘Permanent’ registration must take effect within 6 months, or within 9 months in case the 3 months extension is applied, from the date of the initial ‘Provisional’ registration. Lastly, the ‘Parallel’, or ‘Bareboat’, registration of ships in Cyprus is distinguished in two subcategories - the Parallel - in registration, which offers the possibility to a foreign vessel on bareboat charter to a Cyprus Shipping company to be registered in parallel under the Cyprus flag for a period of usually 2 years, and the Parallel-out registration, which offers the possibility to owners of Cyprus vessels to bareboat charter them to a foreign person or company.

Most choose to focus on permanent registration for their vessel through first establishing a provisional registration. The tax schemes and other policy benefits attract foreign shipowners and shipping companies as a flag state but also a principal place of business.