Ship Registration in Cyprus
Ship registration in Cyprus offers many advantages. By registering a ship in Cyprus, you can be exempted from the tax on profits from the activities of a registered ship in Cyprus, as well as you are exempt from the tax on gains of shares owned by the company of the ship, income from the sale or transfer of a registered ship in Cyprus, there is no income tax on the salaries of the ship’s crew.
As an advantage of the registration of a ship in Cyprus is also the cost of its registration. There is a loyal tax scheme for tonnage based on the gross importation of the ship. Also, when making mortgage transactions, there is no herbal duty.
The registration of a ship in the name of the Cyprus Company may be affected when a non-resident of Cyprus establishes a company in Cyprus and then either charters a ship or buys a ship in their name. Also, in the event that natural or legal persons who do not reside in the territory of Cyprus own fifty percent or more of the shares of the ship, it is necessary to appoint an authorized representative in Cyprus, after which the ship will be subject to registration.
Registration of a Cyprus-flagged vessel may be effected by means of a trema – at the Registrar of Cyprus Ships, in Limassol and at diplomatic missions, embassies or consular offices of Cyprus abroad (prior registration up to 9 months).
Cyprus legislation also provides for (parallel registration) bareboat charter:
- Parallel registration
- Parallel-out registration
Our company will be happy to help you to register the ship in Cyprus. For more information and a quotation, please contact FINWYN CONSULTANCY LTD lawyers.