Cyprus is a key maritime centre and is recognised as one of the most accessible registries in the EU. It has not only grown in size in the last two decades but has also made a considerable effort to increase the quality of its fleet and related services.
Limassol Marina, the first and largest superyacht marina in Cyprus, is one of the most sought-after waterfront locations in the Mediterranean and since opening has seen approximately over 9,000 international arrivals, including 300+ unique superyachts, each stretching to over 140m. As a result, the Cyprus flag is now classified on the whitelist of the Paris and Tokyo MOUs (Flags securing the highest rating in relation to the Memorandum of Understandings on Port State Control).
Due to its strategic location at the gateway of Europe, Africa, Asia, and the Middle East, it is a hub for shipowners and investors from all over the world, and there has been a rapid growth in the number of Cyprus shipping companies in recent years.
The procedure for registering vessels under the Cyprus flag has been designed to attract foreign investment and to build a dependable reputation, to be recognised by all of the international shipping authorities.
Cyprus offers competitive yacht registration fees, low ongoing annual fees for yacht owners, and an attractive tax treatment for officers and crew working on a Cyprus registered yacht, whereby they are not subject to income tax, as well as a series of other tax advantages. These include; no tax on profits from the operational and/or management profit, no tax on income or dividends received from a ship management company, and a favourable tonnage tax scheme, based on gross tonnage.
Generally, those wishing to register a vessel under the Cyprus flag incorporate a company in Cyprus, which will either acquire the yacht in its name, or bareboat charter the yacht. Cyprus offers a competitive rate of corporate income tax at 12.5% and low operating costs for Cyprus-owned companies. In addition, there is no estate duty on the inheritance of shares in a Cyprus shipping company and no stamp duty is payable on the ship mortgage deeds.
Dixcart Services and Additional Information
Dixcart can assist in all aspects of registering a yacht in Cyprus. Services include the incorporation of the owner entity, coordinating the appropriate corporate and tax compliance, and registration of the vessel.