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Tax incentives
Cyprus offered significant tax
incentives to shipping companies such as the following:
- no income tax is payable on the profits from the operation
of a Cyprus registered vessel or dividends received from a shipowning company
- no estate duty is payable on the inheritance of shares in a
shipping company
- no capital gains tax is payable on the sale or transfer of a
ship or shares in a shipping company
- no income tax is payable on the salaries of officers and
crew of Cyprus ships which operate in international waters
- no stamp duty is payable on bills of sale and mortgages on
ships and related documents
- low ship registration costs and annual tonnage taxes and
numerous tax advantages stemming from double taxation treaties
- consideration reductions in tonnage tax if crewing and
technical management is being carried out from Cyprus or Cypriot seamen are being employed
on board
- ship management and crew management companies are liable to
tax at the same preferential rate as other offshore companies
- foreign employees of offshore companies including ship
management and other shipping companies’ headquarters in Cyprus enjoy significant tax
advantages
- no exchange control restrictions
- employment of crew of other nationalities in view of the
scarcity of seamen in Cyprus
- recognition of the competence certificate issued by Cyprus
by a large number of countries
- recognition of mortgages registered on a Cyprus ship
affording full protection for financiers and mortgagees
- existence of bilateral agreements between Cyprus and other
countries
- simple and quick procedure for the deletion of ships from
the registry
- excellent facilities for full local ship management and
ability to provide highly qualified manpower and essential services
- full protection from crewmen as provided under local and
international law
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