Shipping Law in Cyprus
Shipping Law (also known as Maritime or Admiralty Law) is a complex and specialised area of law that deals with maritime trade, shipping, and navigation.
Cyprus, being an island nation, has a long and rich history of maritime trade and commerce. Today, Cyprus is one of the most important maritime nations in the world and is home to one of the largest ship registries.
Cyprus has a comprehensive legal framework that governs the shipping industry. The main legislation that governs shipping in Cyprus is the Merchant Shipping Law. This law governs all aspects of shipping, including the registration and licensing of ships, the employment of seafarers, the liability of ship owners and operators, and the regulation of maritime safety and pollution.
Ship Registration in Cyprus
One of the main advantages of registering a ship in Cyprus is that the country has a well-established and efficient ship registry. The Cyprus Ship Registry is one of the largest and fastest-growing registries in the world, with over 1,000 vessels registered under the Cypriot flag. The registration process is straightforward and efficient, and the fees are competitive.
The registration of a ship in Cyprus provides a number of benefits, including access to the European Union’s cabotage and international shipping markets, reduced tonnage tax, and the ability to fly the Cypriot flag, which is a reputable and recognised flag in the international maritime community.
Shipowners who register their ships in Cyprus are also required to comply with the country’s environmental and safety regulations. Cyprus is a signatory to various international maritime conventions, including the International Convention for the Prevention of Pollution from Ships (MARPOL) and the International Convention for the Safety of Life at Sea (SOLAS). These conventions set out the minimum standards for environmental protection and maritime safety.
Registering a Cyprus Shipping Company
The Republic of Cyprus is a member of the IMO, the Council of Europe, the Commonwealth and many other international organizations. In addition, it is a signatory to many international maritime conventions and has concluded bilateral agreements of cooperation in merchant shipping and double tax treaties with a large number of countries.
- Member of the European Union and the Eurozone.
- No tax on profit from the operation or management of a vessel registered under the Cyprus flag or shares in a ship owning company.
- No capital gains tax on the sale of a Cypriot vessel or transfer of shares in a Cypriot ship owning company.
- No exchange control.
- Over 65 double taxation treaties in effect, with more under negotiation.
- Cyprus flag classified in the white list of PARIS & TOKYO MOUs on Port State Control.
- Cyprus flag excluded from the “List of Target Flag States’’ of the US Coast Guard, resulting in fewer inspections and delays of Cypriot ships at the ports of both MoUs and the US.
- No estate duty on inheritance of shares in a ship owning company.
- No income tax on emoluments of officers and crew.
- No stamp duty on ship mortgage deeds.
- Signatory to all International Maritime Conventions.
- Member of the International Maritime (IMO) and Labour (ILO) Organisations.
- Competitive ship registration costs and fees.
- Low set up and operating costs for companies.
- Excellent telecommunications and easy access by air and sea.
- No nationality restrictions for seafarers.