With the island’s status as an International Maritime Centre, and its particular strategic significance, services covering Shipping & Admiralty are a pertinent field that Kaimakliotis & Co extensively covers with broad experience and up-to-date knowledge. Spanning the full range of commercial shipping activities, our legal services range from industry representation and paperwork for purchase, sale and ownership, to vessel registration under the Cyprus Flag.
Our Shipping & Admiralty team can assist with all issues that fall within the law, including:
- Registrations: Shipping Companies / Vessels / Yachts / Flags
- Shipbuilding Contacts
- Ownership: Purchase / Sale / Ownership Transfer
- Ship Name: Changes & Deletions
- Financing & VAT Planning
- Crew & Employment Issues: Staffing / Payroll
- Transhipment & Towage Agreements
- Contracts
- Disputes & Claims
- Insurance
Benefits of Cyprus as a shipping destination
Cyprus remains an attractive shipping destination and an in-demand International Maritime Centre thanks to a number of factors that give it a significant 20% share of the world ship management market - despite its small size.
The island has the third largest merchant fleet in the European Union (EU), and the tenth largest in the world. It is the largest third party Ship Management Centre in the EU, and the second largest Ship Management Centre in the world. There are many factors that lend Cyprus its high ranking status among international fleets: The ‘Cyprus Sovereign Flag’; favourable tax conditions for foreign ship owners; low set-up and operating costs; the EU’s only approved ‘Open Registry’ Regime, and the island’s many maritime memberships and cooperations.
Maritime memberships, participation & cooperation
- The International Maritime Organization (IMO) - Member 1978, member of its Council since 1987.
- The European Maritime Safety Agency (EMSA)
- The International Labour Organization (ILO), Member since 1960
- International Maritime Conventions Adopted: SOLAS, MARPOL, LL, CLC, INMARSAT, STCW, COLREG, TONNAGE, FUND, LDC, CSC, SUA, STP, SAR, HNS, BUNKERS, LLMC, FAL, AFS, ILO
- Approved Classification Societies: ABS, LRS, DNV, BV, GL, RINA, NKK, KRS, CCS, RS, PRS.
- Bilateral Agreements of Cooperation in Merchant Shipping with:
- Algeria, Bulgaria, China, Cuba, Egypt, Georgia, India, Iran, Israel, Italy, Jordan, Korea, Latvia, Lithuania, Malta, Mauritius, Philippines, Poland, Romania, Russia, Sri Lanka, Syria, Ukraine.
Tax benefits of registering a Cypriot Shipping Company
There are many tax benefits to registering a Cypriot Shipping Company, and Kaimakliotis & Co will ensure that clients reap the full benefits of the tax advantages through our expertise and in-depth knowledge of the shipping sector.
The island’s Tonnage Tax System (TTS) was introduced with the Merchant Shipping Law in 2010. There are three main maritime transport activities under the system:
- Ship Owning
- Ship Management (Technical & Crew)
- Chartering
In particular, Cyprus registered shipping companies participating in the Cyprus Tonnage Tax System can enjoy the following privileges:
- Operation and/or management of a vessel registered under the Cyprus flag: No tax on profit.
- Shares in a ship owning company: No tax on profit.
- Emoluments of officers and crew: No income tax.
- Transfer of shares in a Cypriot ship owning company: No capital gains tax.
- Sale of a Cypriot vessel: No capital gains tax.
- Inheritance of shares in a ship owning company: No estate duties.
- Ship mortgage deeds: No stamp duty.
- Large network of Double Taxation Treaties (DTT) - 50+ and counting.
Ship registration
The ship registration process in Cyprus is a simplified one, which is made even easier with the expert assistance of Kaimakliotis & Co.
Vessels of all type and sizes are eligible to be registered in the Register of Cyprus Ships or the Special Book of Parallel Registration as long as they fully comply with the type and age-related requirements.
Ships can be registered in the following instances where:
- Shares of the ship are 50% or more Cypriot citizenship owned.
- Shares of the ship are 100% owned by one or more corporations that have been established and operate in Cyprus with a registered office in Cyprus.
- EU citizens who are not permanent residents of Cyprus have appointed an authorised representative in Cyprus.
- Corporations whose registered office, principal place of business or central administration is located in the European Economic Area (EEA), and who have an appointed or authorised representative in Cyprus.
- Corporations whose registered office, principal place of business or central administration is located in the European Economic Area (EEA), and who have assigned management of their ship in full to a Cypriot or a Community ship-management company that operates on the island.
- Corporations who operate outside of the EU but are controlled by citizens of any Member State (including Cyprus), and who have assigned management of their ship in full to a Cypriot or a Community ship-management company that operates on the island.
In regards to crew, personnel must be holders of valid certificates required by – and issued by – the government, without any conditions or restrictions on crew nationality.