Cyprus is the third largest island in the Mediterranean after Sicily and Sardinia and combines a low tax regime together with an extensive network of double tax treaties.
From a shipping perspective the fiscal and economic advantages encompass competitive ship registration charges and annual tonnage taxes. Cyprus is also a major ship management centre with circa 60 ship management companies operating locally. The Cyprus registry ranks tenth in the world with a gross tonnage exceeding 21 million.
Other advantages for ship owners and operators include:
– Low corporate tax rate – 10% on profits
– No exchange controls
– Double tax treaties with 45 countries
– Bilateral agreements of cooperation in merchant shipping with 23 countries
– Low set up and operating costs for companies
– VAT exemption for international transport services when the effective use and enjoyment of the services takes place outside the EU
– Special taxation for shipping companies, Ship owners, charterers and ship managers participating in the Cyprus tonnage tax system
– No estate duty on the inheritance of shares in a ship owning company
– No income tax on the emoluments of crew
– No stamp duty on ship mortgage deeds or other security documents
– A legal system based on the English model
Our team of professional yacht agents will happily guide you to decide on the best suited flagging options for your yacht, based on the intended use of the vessel (private use, charter, VAT reclaim, export, …) as well other parameters such as taxes, insurance, mortgages and loans, boat & yacht finance and refinancing, all to fit with your personal circumstances.
While we are happy to register your vessel in the country of your choice, including through purpose-built holding companies and tax efficient ownership legal structures if necessary, we do have Memorandum of Understanding (MoU) to enable fast track registration with the following commercial ships and pleasure yachts registries: