The Cyprus registry ranks eleventh among international fleets and third within the European Union, with a merchant fleet exceeding twenty two million gross tons.
Taking advantage of “Cyprus Sovereign Flag” and Cyprus being an International Maritime Centre with increased demand in shipping related services we are on a regular basis aiding on the following:
• Registration of shipping and ship management companies in Cyprus.
• Ship registration in Cyprus.
• Yacht Registration in Cyprus.
• Parallel (bareboat) Registration.
• Transfer of vessel ownership.
• Assistance on Ship Finance.
• Other Services such as search, transcripts, change of ship name, deletion, transfer of ownership and more.
• VAT Planning for Yachts.
Cyprus offers complete tax exemption of all profits arising from qualifying shipping operations. Instead, annual tonnage tax is levied on the net tonnage of the vessels. The regime covers qualifying persons performing qualifying activities in relation to qualifying vessels. Qualifying persons, meaning shipowners, charterers and ship managers providing technical and/or crewing services. As mentioned the VAT Planning for Yachts, points that Cyprus has the most attractive approved VAT regime currently in place in the EU. In effect, the regime allows yachts owners/lessors - a Cyprus resident company, to benefit from significantly reduced VAT rates proportionate to the pleasure yacht’s part-use outside EU waters. The scheme also includes a favorable option for the lessee to purchase yacht at an agreed price.
Benefits of the Cyprus Flag
• No tax on the operational or management profits of Cyprus-registered ships.
• No tax on income or dividends received from a ship management company.
• No capital gains tax on the sale, transfer, or shares of a ship-owning company.
• No estate duty imposed on inheritance.
• No income tax imposed on the wages of the officers or crews.
• Low tonnage tax based on gross tonnage.
• No stamp duties for ship mortgage deeds or security.
• No stamp duties for ship mortgage deeds or security documentation.
• Cyprus has signed with more than forty-three (43) countries a double tax treaty.
• Attractive, low cost registration of a ship.
• Low operating cost for Cyprus owned companies.
• European Union Flag.
• Cyprus has signed all international maritime conventions regarding pollutions and safety.
• More than 26 countries have bilateral agreements with Cyprus for favoured treatment in worldwide ports.
• Maritime offices globally.
• Highly-skilled professionals and infrastructure in place.
• White listed high quality flag recognised globally.
Requirements of Ownership
• More than 50% of the shares must be owned by Cypriot citizens or by citizens of Member States of the EU, 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
• The 100% of the shares of the ship must be owned by corporations, which operate in accordance with the laws of the Republic of Cyprus and have their registered office in the Republic of Cyprus, or the operate in accordance with the laws of any other EU Member State and have their registered office, central administration or principal place of business within the EU, or by corporations registered outside the EU but controlled by Cypriot citizens or citizens of a Member State.
In the both 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.
Registration Types
There are three types of registration in Cyprus: Provisional registration, Permanent registration and Parallel (Bareboat) registration.
• Provisional registration of a ship has a six month life spam. After that may be renewed once for a further three months.
• Permanent registration of a provisionally registered vessel must be effected within six months (or nine months if the three month extension has obtained) from the date on which she was provisionally registered.
• Parallel (Bareboat) registration, Cyprus domestic law provides for the two internationally accepted terms, “Parallel-in” and “Parallel-out”, certain prerequisites to be fulfilled. Parallel-in registration offers the possibility to a foreign flag vessel on bareboat charter to a Cyprus Shipping company to be registered in parallel under the Cyprus flag for a period of two years. Parallel-out registration offers the possibility to owners of Cyprus ships to bareboat charter them to a foreign person or company and to effect a “Parallel” registration in a foreign register for the duration of the charter party.
Registration Requirements
• Application for registration.
• Company’s Memorandum and Articles of Association and corporate certificates. In the case of the owner been a physical person, prerequisite a passport copy or an I.D.
• In the case of a company established outside the Republic of Cyprus an appointment of authorised representative or in the case of a non-Cypriot citizen, is a prerequisite.
• Resolution of the Director of the Company, Power of Attorney for the purchase of the vessel and its registration in the Register of Cyprus Ship duly certified.
• Bill of Sale and Builder’s certificate, duly certified.
• Where it is applicable Deletion Certificate from the previous registry.
• Where it is applicable, Forms ISPS.
• Where it is applicable, Continuous Synopsis Record (CSR).
• Declaration of Ownership.
• Form for the Registration Form of a Mobile Maritime Radio Station, copy of Shore Based Maintenance Agreement.
• Where applicable, form for the registration of SAR Particulars.
• Where applicable, confirmation of Radio Traffic Accounting Authority.
• Where applicable confirmation of Classification Society.
• Where applicable, ISM forms.
• Declaration of Owner of a Cyprus Ship in the case of a qualifying ship engaged in a qualifying shipping activity.
• Certificate of Insurance for Maritime Claims, e.g. Certificate of Entry issued by the vessel´s P&I Club for vessels of a gross tonnage of 300 and above.
• Application and certificate of insurance (Blue Card) for the issuing of a Certificate under the 2001 Bunkers Convention for vessels of a gross tonnage of 1000 and above.
• Application and certificate of insurance (Blue Card) for the issuing of a Certificate under the 1992 CLC Convention for tankers with a carrying capacity above 2000 tons.
• Certificate of Survey.
• International Tonnage Certificate.
• Where applicable, Safety Management Certificate (SMC).
• Where applicable, Entry Inspection Report.