Cyprus Maritime and Tax advantages.

Cyprus is a considered a great Maritime hub and a Tax friendly destination allowing shipping companies from around the world to relocate their operations and bases. The Tonnage Tax System, the Cyprus Tax Regime and the excellent quality of business services have put the Mediterranean EU State member in the map of worldwide shipping.

Cyprus Maritime advantages.

  • A maritime cluster encompassing the full range of shipping and shipping related activities.
  • One of the largest ship management centers in Europe and in the top 5 of the world.
  • Business friendly common law jurisdiction.
  • Comprehensive and favorable Tonnage Tax System, approved by the European Union, applicable to Ship Owners, Charterers and Ship managers.
  • Geographical location allowing easy access to markets and connection to 3 continents.
  • Ideal time zone for running international operations.
  • Highly skilled and multilingual shipping workforce.
  • High level of professional services. An established business hub in the EU.
  • More than 60 Double Tax Avoidance Treaties.

The Cyprus Shipping Registry.

  • A sovereign flag of progress and quality.
  • Member of the IMO Council since 1987.
  • The 3rd largest fleet in the EU.
  • Classified in the ‘White List’ of the Paris and Tokyo MoUs on Port State Control.
  • Business friendly common law jurisdiction.
  • Comprehensive and favorable Tonnage Tax System, approved by the European Union.
  • More than 25 Bilateral Agreements on Merchant Shipping.
  • Competitive ship registration costs and fees.
  • No nationality restrictions for seafarers.
  • Top quality public services to the shipping industry 24/7.
  • Maritime offices in Piraeus, London, Hamburg, Rotterdam, New York City and Brussels.
  • Strong involvement in international shipping fora (IMO, ILO) and EU.
60 days Cyprus resident

The Tonnage Tax system in Cyprus.

The Cyprus Tonnage Tax System, which has been approved by the European Commission as compatible with the Guidelines on State Aid to Maritime Transport, provides a stable fiscal environment for Cyprus Shipping in the long term.

Beneficiaries.

  • Owners of Cyprus ships
  • Owners of foreign ships
  • Charterers
  • Ship managers

Qualifying owners, charterers and ship managers are subject to an annual tonnage tax which is calculated on the net tonnage of the qualifying ships they own, charter or manage.

Exemption from Income Tax.

On the income of a qualifying owner / charterer derived from the operation of a qualifying ship engaged in a qualifying shipping activity.


On the income of a qualifying ship manager derived from the rendering of crew and/or technical management services to a qualifying ship.


On the income or profit made from the sale of a qualifying ship (only for owners).


On the profit dividends paid to shareholders directly or indirectly from the operation / ship management of a qualifying ship.


ΝΟ TAX on the profit dividends paid to shareholders directly or indirectly from the sale of a qualifying ship (only for owners).


On the bank interest earned on working capital or shipping revenue, provided that the said working capital or shipping revenue is used by a qualifying:

  • owner to pay expenses for the financing and/or operation and/or maintenance of the ship,
  • charterer to pay expenses arising out of the charter party,
  • ship manager to pay expenses relevant to the management of the ship.

On the wages and other benefits of officers and crew members of a qualifying Cyprus registered ship.

Find more about the Tonnage Tax system.

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