Cyprus Shipping Companies and the Cyprus flag have always been of great essence to the world of shipping. Cyprus currently has the 3rd largest fleet in the world. The shipping industry plays a vital role in the economy of the country and because of that special incentives have been given by the government to make Cyprus one of the largest shipping centres in the world.
Some of those incentives and advantages that a Cyprus Shipping Company can enjoy are:
- No Tax on profits from the operation or management of a Cyprus – registered vessel
- Under certain requirements ship owners of third country flag ships may opt to be taxed under the tonnage system or pay corporate tax at 4,25% on taxable profits.
- No Tax on dividends received from a vessel owning Company
- No Capital Gains Tax on the sale or transfer of a Cyprus – registered vessel or the shares of a vessel owning Company
- No Income Tax on the wages of officers and crew
- No estate duty on the inheritance of shares
- No stamp duty on ship mortgage deeds or other security documents
- Double tax treaties with more than 40 countries
- Ship registration costs and annual tonnage Taxes at competitive rates
- Full protection for financiers and mortgages
- Low set up and operating costs