Cyprus is a major ship management centre attracting foreign ship owners through the highly favourable tax provisions available for shipping companies on the island.
Advantages of the Cypriot Shipping Company
Some of the advantages of registering a Cypriot shipping company are:
- 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;
- A liberal foreign direct investment programme (which allows for 100% foreign involvement in many sectors)
- No exchange control;
- Over 50 double taxation treaties in effect, with more under negotiation;
- 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.
Given the considerable advantages offered to Cypriot ship owners and ship management companies, it is not difficult to see why Cyprus has grown to be one of the largest third-party ship management centres in the world. In fact, Cyprus represents 20% of the world ship management market and several of the largest management companies in the world operate out of this small island.