The Cyprus Registry holds the 11th position among international fleets with its merchant fleet ranking 3rd in the European Union.
Vessel Registration
Criteria of Ownership for registering under the Cyprus flag:
A) More than fifty percent (50%) owned by Cypriot citizens or citizens of other
E.U. Member States with an authorized representative in Cyprus, or
B) The total (100%) of the shares of the ship owned by one or more corporations,
which have been established and operate:
- In accordance with the laws of Cyprus with their registered office in Cyprus, or
- In accordance with the laws of any other EU Member State, managed from
Member State, with either authorised representative in Cyprus or where the ship
is managed from Cyprus, or - outside Cyprus or any other Member State but controlled by Cypriot citizens
of Member States with authorised representative in Cyprus or where the ship is
managed in Cyprus
Types of Registration
a. Provisional Registration
b. Permanent Registration
c. Parallel Registration
The Tonnage Tax System at a glance
The Tonnage Tax System (TTS) applies to all qualifying Owners of Cyprus ships doing a qualifying
activity, automatically, and to Owners of foreign ships, Charterers, Ship managers, where the below
criteria apply:
Owners of Foreign Ships Eligible for the TTS is any owner of a foreign ship, who:
• is a tax resident of the Republic of Cyprus
• has opted to be taxed under the TTS and
• owns a qualifying ship, which is
• engaged in a qualifying shipping activity
• “Community-Flagged Share” Requirement- (a certain percentage of community flagged vessels)
Charterers Eligible for the TTS is any charterer who charters ships under bareboat, demise, time or
voyage charter and:
• is a tax resident of the Republic of Cyprus
• has opted to be taxed under the TTS and
• charters a qualifying ship, which is- engaged in a qualifying shipping activity
• Minimal Share of the Fleet in Ownership – (Percentage of Chartered-in ships)
• “Community-Flagged Share” Requirement
Ship Managers Eligible for the TTS is any ship manager who:
• is a tax resident of the Republic of Cyprus
• has opted to be taxed under the TTS
• provides ship management services (crew and/or technical management) to qualifying ships and meets at
any time the following requirements
• Maintains a fully fledged office in Cyprus
• Employs a sufficient number and qualifications personnel
• At least 51% of the total number of its personnel must be EU/EEA citizens
• “Community-Flagged Share” Requirement
• Economic link of managed ships with the Community (EU/EEA) -The “2/3 Rule”
• Provision of crew management services in accordance with the MLC 2006
• Certified under the ISM Code (DOC) by the competent authority of the flag States of the ships under its
technical management
Once under the system, the owner, charterer, or ship manager, becomes subject to an annual
tonnage tax which is calculated on the tonnage of the qualifying ships they own, charter or
manage as per the below:
TONNAGE TAX RATES FOR QUALIFYING OWNERS /CHARTERERS /SHIP MANAGERS
| category | 0 – 1000 | 1001 – 10000 | 10001 – 25000 | 25001 – 40000 | over 4000 |
| €36,50 | €31,03 | €20,08 | €12,78 | €7,30 | |
| Owners / Charteres | Per 100 T | Per 100 T | Per 100 T | Per 100 T | Per 100 T |
| Ship Managers | Per 400 T | Per 400 T | Per 400 T | Per 400 T | Per 400 T |
Exemption from Income Tax regarding the following:
• Income from shipping operations
• Income from the rendering of the crew and/or technical management services
• Profit dividends paid to shareholders from shipping operations/ management
• Income or Profit made from the sale of a qualifying ship or from the sale of any company owning such
ship
Other advantages when registering a vessel in Cyprus:
• EU flag
• Classification of Cyprus flag in the White List of the Paris and Tokyo MOUs
• Maritime offices internationally
• A network of inspectors of Cyprus ships, covering important ports worldwide
• Signatory to all international maritime conventions on safety and pollution prevention
• Bilateral agreements with 29 countries in the field of Merchant Shipping
Our Services:
• Registration of shipping companies
• Registration of Ships in the Registry of Cyprus Ships: Provisional, Permanent, Parallel
• Crew documents and employment contracts
• Tonnage Tax system guidance and application, registration under the system for Ship Owners,
Charterers and Ship managers
• Registration of Yachts: Pleasure, Commercial Sale & Purchase: Drafting of agreements and ancillary
documents/effecting transfer of ownership
• Chartering/ Lease Agreements
• Financing/ Mortgages/ Guarantees
Disclaimer: This publication has been prepared for general guidance on matters of interest only and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the
accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, Highworth (Cyprus) Ltd, its members, employees, and agents do not accept or assume any liability, responsibility, or duty of care for any consequences of you or anyone else acting, or refraining from acting, in reliance on the information contained in this publication or for any decision based on it.
