We provide advise to shipowners, charterers, carriers, shipmanagers, forwarders and their respective insurers and assist to resolve commercial and legal matters. We maintain contacts with prominent law firms overseas that enables our office to act as coordinator in concurrent litigation in different jurisdictions.
Our advice and assistance extends to all types of maritime and shipping matters :
- Registration of ship owning companies.
- Registration of any kind vessels and choice of flag.
- Preparation of shipbuilding contracts and acquisition of new tonnage.
- Matters relating to the financing, ownership and operation of ships and related security documentation.
- Marine insurance advice in connection with the coverage of marine, hull, P & I and cargo insurance and claims under marine policies.
- Tax considerations.
- We also provide advise on matters related to aviation.
- Aircraft acquisition, registration, operation and financing.
Ship-Owning Companies/ Tonnage Tax
For ship-owning companies, the profits derived by the owner of a ship registered in the European Union or European Economic Area (EEA) (as well as other foreign jurisdictions, subject to conditions) from its operation/charter out are fully exempt from all direct taxes. The term ‘owner’ includes a bareboat charterer of a non-Cyprus flag vessel parallel registered in Cyprus. A similar exemption applies to charterers and ship managers.|
Bareboat charter out agreements remain eligible for tonnage tax, with restrictions introduced for bareboat charter agreements to third parties. Grandfathering provisions are applicable for existing contracts that are captured by these restrictions.
Instead of Corporate Income Tax (CIT), ship owners, charterers, and managers pay tonnage tax on the net tonnage of the ships they own, charter, or manage. In addition, there is no tax on dividends paid at all levels of distribution by the above persons out of profits subject to tonnage tax and there is no taxation on the sale or transfer of a ship, share in a ship, or shares in a ship-owning company and their distributions. The same legislation also provides for income tax exemption of the salaries and benefits of the captain, the officers, and the crew aboard Cyprus and EU/EEA qualifying flag vessels engaged in qualifying activities.
This treatment applies until 31 December 2029 and is compulsory for Cyprus flag ship owners, but optional for other ship owners, charterers, and ship managers.