Applications for registration of ships must be made through Cypriot lawyers.
At the time of its registration, the ship must be surveyed by an approved classification society.
A. More than half of the shares (50%) of the ship must be owned by Cypriot citizens or by citizens of Member States of the EU or of the European Economic Area who in the instance of not being permanent residents of the Republic will have to appoint an authorised representative in the Republic of Cyprus, or
B. The total (100%) of the shares of the ship must be owned by corporations, which operate in accordance with the laws of the Republic and have their registered office in the Republic of Cyprus, or they operate in accordance with the laws of any other EU or EEA Member State and have their registered office, central administration or principal place of business within the European Economic Area or by corporations registered outside the EU or the EEA but controlled by Cypriot citizens or citizens of a Member State. In both the latter cases they must have either appointed an authorised representative in Cyprus or the management of the ship must be entrusted in full to a Cypriot or Community shipmanagement company in Cyprus.
TYPES OF REGISTRATION
Provisional, Permanent, Parallel (Parallel in, Parallel out)
There is a fee payable on provisional registration between a minimum of €213,58 and a maximum of €5.125,80 depending on the GT of the ship. The tariff differs for passenger vessels. No other fee is payable on permanent registration provided this takes place before the provisional registration expires. An annual Tonnage tax is payable according to the tonnage and age of the ship with discounts if the crew and technical management of the ship is carried out by a Cypriot or EU shipmanagement company.
GOVERNMENT POLICY FOR THE REGISTRATION OF CYPRUS SHIPS
Vessels of any size and type may be registered in the Cyprus Register of Ships or the Special Book of Parallel Registration as long as they comply with the provisions contained in the merchant shipping legislation and the circulars of the Department of Merchant Shipping (DMS) and satisfy certain conditions according to their age and type.
APPROVED CLASSIFICATION SOCIETIES
ABS, LRS, DNV, BV, GL, RINA, NKK, KRS, CCS, RS, PRS.
Crew members may be of any nationality provided they are holders of certificates of competency issued by one of the countries, whose certificates of competency Cyprus has recognised.
INTERNATIONAL CONVENTIONS ADOPTED
SOLAS, MARPOL, LL, CLC, INMARSAT, STCW, COLREG, TONNAGE, FUND, LDC, CSC, SUA, STP, SAR, HNS, BUNKERS, LLMC, FAL, AFS, ILO
No tax on profits from the operation or management of a Cyprus-registered vessel or on dividends received from a vessel owning company.
No capital gains tax on the sale or transfer of a Cyprus-registered vessel or the shares of a vessel owning company.
No income tax on the wages of officers and crew.
Low registration costs.
Favourable tonnage tax scheme based on ship gross tonnage.
No stamp duty on ship mortgage deeds or other security documents.
Double tax treaties with 43 countries.
No exchange control and freedom of movement of foreign currency
Full protection for financiers and mortgagees.
Low set up and operating costs for companies.
Classification of Cyprus flag in the White List of the Paris and Tokyo MOUs and removal from the “List of Targeted Flag States” of the US Coast Guard resulting in fewer inspections of the ships and less delays at the ports of both MOUs.
Maritime offices in New York, London, Rotterdam, Piraeus, Brussels and Hamburg offering services to Cyprus ships.
A network of local inspectors of Cyprus ships, covering important ports worldwide in order to ensure efficient and effective control of Cypriot vessels and to avoid detentions by port state control.
Signatory to all international maritime conventions on safety and pollution prevention.
Bilateral agreements with 23 countries, through which Cypriot ships receive either national or favoured nation treatment in the ports of other countries. Those agreements with labour supplying countries provide for specific terms of employment which are beneficial to both the shipowners and the seafarers.
Efficient and qualitative provision of services by the Department of Merchant Shipping