OPERATING UNDER THE FLAG

What are the primary advantages of the Cyprus Tonnage Tax System?

Cyprus offers a highly competitive, EU-approved Tonnage Tax System. Instead of being taxed on corporate profits, owners are taxed on the net tonnage of the fleet.

Key benefits include:

  • Full exemption from income tax on shipping activities.
  • No capital gains tax on the sale of a ship or shares in a shipping company.
  • No estate duty on the inheritance of shares.
  • No stamp duty on ship mortgage deeds or security documents.


Is there an age limit for ships registering in Cyprus?

Generally, there is no hard prohibition, but there are conditions based on the ship's age:

  • Vessels under 15 years: Standard registration.
  • Vessels 15–20 years: Usually require an entry inspection by the Shipping Deputy Ministry within a specific timeframe (often 3 months) of provisional registration.
  • Vessels over 20 years: Require a pre-authorization inspection and must maintain extra safety/operational criteria to be accepted.


Can I register a vessel while it is still under a bareboat charter?

Yes. Cyprus law allows for Parallel Registration:

  • Parallel-In: A foreign-flagged vessel bareboat chartered to a Cyprus company can be registered parallel in the Cyprus Registry for the duration of the charter (usually 2 years, renewable).
  • Parallel-Out: A Cyprus-flagged ship bareboat chartered to a foreign corporation can be registered in a foreign registry while maintaining its underlying Cyprus nationality.


What are the requirements for the crew’s nationality?

Cyprus is a very flexible registry. There are no nationality restrictions for the master, officers, or crew.

However, they must hold certificates of competency issued by a country whose certificates Cyprus recognizes (which includes most major seafaring nations under the STCW Convention).


Do I need to physically bring the ship to a Cyprus port for registration?

No. The registration is purely administrative and technical. The vessel can be anywhere in the world. The provisional documents can be sent to and collected from any Cyprus Consulate or through your local advocate in Cyprus.

REGISTRATION PROCESS >