Cyprus is a great Maritime hub and a Tax friendly destination
allowing shipping companies worldwide to relocate their operations
and bases.
The Cyprus Tonnage Tax System (TTS) applicable to merchant
shipping was initially approved by the European Commission in 2010,
for a 10-year period, as compatible with the requirements of the EU
acquis and in line with the Guidelines on State aid to maritime
transport. Cyprus was the first open registry within the EU to have
a comprehensive, transparent and approved TTS by the EU.
According to the Scheme, qualifying owners of Cyprus and foreign
ships, charterers and ship managers who are approved to be taxed
under the TTS are subject to an annual tax referred to as tonnage
tax, which is based on the net tonnage of the vessels rather than
on their actual profits from maritime transport activities. The
tonnage tax is considered as one of the key assets of the Cypriot
shipping industry in its efforts to attract more ships
