Cypriot shipping companies may be used to own or operate a Cypriot-flagged vessel and may therefore be of interest to ship or yacht owners wishing to flag or re-flag under the Cypriot flag. 

Companies owning or operating (including under bare boat charter) Cyprus-flagged vessels may apply for a 100% exemption from Income Tax on the resultant profits; companies owning or operating Cyprus-flagged yachts outside of Cyprus may apply for a ruling as to IBC status above.

Our Maritime Law Unit is at your disposal to provide all assistance relative to the flagging of the vessel or yacht concerned.

Advantages of Cyprus Shipping Companies

Registration of ships and yachts under the Cypriot flag offers several advantages:

• low company formation and ship registration costs;
• no restrictions on the nationality of the ship owner;
• complete tax exemption for private yachts and ships over 1000 Gross Tons;
• low tax rate of 12.5% and VAT exemption for chartering of commercial yachts;
• no restrictions on the nationality of the master, officers and crew;
• no restrictions or taxation on the sale or transfer of shares of a company owning Cypriot registered ships;
• no restrictions or taxation on the sale and mortgaging of Cypriot registered ships;
• no trading restrictions and preferential treatment to Cypriot ships in certain ports;
• Cyprus is an international maritime centre providing the whole range of maritime services.