Shipping & Maritime
Cyprus shipping: one of the world's most favourable maritime regimes
Cyprus operates one of the EU's most competitive tonnage tax regimes. Ship owners and managers benefit from low effective tax rates, a comprehensive treaty network, and a reputable flag state.
Key Features
Cyprus maritime advantages
Tonnage tax system
Cyprus operates a tonnage tax system — ship owners pay tax based on vessel tonnage rather than profits. Effective rates are among the lowest globally.
Third-largest ship registry
Cyprus is one of the world's largest ship registries by tonnage, with a well-established reputation and ISPS, ISM, and MLC compliance infrastructure.
Exemption on shipping income
Qualifying ship owners and managers are exempt from income tax and capital gains tax on shipping income under the tonnage tax regime.
Ship management companies
Cyprus-based ship management companies can opt into the tonnage tax system, benefiting from low effective rates on management fees.
Cyprus shipping — common questions
What is the Cyprus tonnage tax?
The Cyprus tonnage tax is an alternative to corporate income tax for qualifying shipping activities. Instead of paying 12.5% on profits, ship owners and managers pay a fixed annual tax based on the net tonnage of the vessels they own or manage. The effective rate is typically well below 1% of income.
Who can use the Cyprus tonnage tax?
Cyprus-resident companies owning, managing, or chartering qualifying vessels can elect to be taxed under the tonnage tax system. The vessels must be Cyprus-flagged or community-flagged (EU/EEA).
Set up your Cyprus maritime company
We advise on Cyprus ship registration, tonnage tax election, and maritime company structures.