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Cyprus Maritime updates on tonnage tax system by European Commission.

The European Commission approves maritime transport support schemes in Cyprus and other 4 countries.

According to the European Commission these support schemes for 5 countries enhance the registration of vessels in the EU and at the same time supporting worldwide competitiveness of the field. 

The Commission adopted five separate decisions, concerning

  • the introduction of a tonnage tax and seafarer scheme in Estonia,
  • the prolongation of a tonnage tax and seafarer scheme in Cyprus,
  • the introduction of a new seafarer scheme in Poland,
  • the prolongation and extension of a seafarer scheme in Denmark, and
  • the prolongation of a seafarer scheme in Sweden

The tonnage Tax and seafarer scheme is one of the biggest advantages of Cyprus Maritime in an effort to attract more ships-vessels and shipping companies in the country.

Specifically, for Cyprus, the Commission has approved the extension of tonnage tax and seafarers’ status after assessing it under EU state aid rules, (in particular its guidelines on state aid to maritime transport) ensuring that they agree with their interpretation.

Regarding the tonnage tax regimes in Estonia and Cyprus, the Commission has found that both comply with the rules restricting tonnage taxation on eligible activities and vessels.

In addition, regarding the taxation of shareholders’ dividends, the Commission has found that both the Estonian and Cyprus tonnage tax regimes ensure that the shareholders of the shipping companies are treated in the same way as shareholders in any other sector.

Concerning seafarer schemes in Estonia, Cyprus, Poland, Denmark and Sweden, the Commission found that all five Member States agreed to apply the benefits of the corresponding regime to all vessels flying the flag of any EU Member State. or the EEA.

Please find the original announcement published on the European Commission website.

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