Shipping: The Cyprus Flag
A key field in Cyprus is the shipping sector as it has the 10th largest merchant fleet in the world and is the 3rd largest ship management sector worldwide. This is due to the fact that Cyprus is one of only two EU-approved ‘Open Registry’ Regime with a very wide and legally endorsed Tonnage Tax System (TTS) which is all inclusive covering ship owning, ship management and chartering.
In brief, a few advantages of the Cyprus TTS include:
- no tax on shipping activities other than the ‘tonnage tax’
- the regime covers a wide range of qualifying activities, vessels and crew members
- no tax on shipping dividends paid or profits (including profits from the sale of ships),
- no estate duties on the inheritance of shares in a ship owning company
- no income tax for seafarers on Cyprus-flagged ships.
Additional advantages of using the Cyprus Flag include:
- A network of maritime offices and local inspectors of Cyprus ships in all important ports worldwide, avoiding costly detentions by port state controls
- Bilateral agreements with a plethora of countries, receiving favourable treatment in the ports of other countries
- Competitive ship registration costs and fees
- No stamp duties on ship mortgage deeds or other security documents
Andreas P. Siapanis & Associates LLC offers a full range of legal services to ship owners, charterers, ship managers and ship financing institutions. By combining our established network of international contacts of leading maritime lawyers, ship financing institutions and ship brokers, we are able to offer a complete service in every type of shipping matter. As always we are committed to providing high quality services all the while promoting the business interests of our clients. Our advice and assistance is offered on all types of maritime matters, including the sale/purchase of vessels, ship registration, charter agreements, ship financing and registration of mortgages.