Cyprus’s Shipping Tax Regime

Cyprus is among the world's top shipping centres, with a government policy which actively attracts investment to the island. This article looks at the features and exemptions which make it so attractive to shipping businesses.

I. Background

Since it became independent in 1960 Cyprus has recognised the importance and potential of shipping, and government policy has succeeded in attracting shipping entrepreneurs and developing the island into a major international shipping centre combining both a sovereign flag and a resident shipping industry. The Cyprus registry currently ranks tenth among international fleets, with 1,857 ocean going vessels with an aggregate gross tonnage of more than 21 million tonnes, and Cyprus is among the world's top five ship management centres, accounting for approximately one-fifth of the global third-party ship management market.