Shipping companies


Cyprus has developed into an international maritime centre offering competitive
advantages to ship owners and ship managers.

There are many reasons why Cyprus has become one of the most attractive places
in the world for locating or carrying out shipping activities. In particular, ship
owners, managers and employees can take advantage of the taxation incentives
that are offered not only by the domestic legislation, but also through the wide and
increasing network of Double Tax Treaties of Cyprus.

Such taxation advantages are in summary:

Ship Owners

  • Income of a ship owner of a Cyprus ship is exempt from taxation
  • Dividends paid out of profits from ships are exempt from taxation
  • Salaries and other benefits paid to master, officers and crew are exempt from taxation
  • No withholding tax on dividends
  • No capital gains on the sale of the ship
  • Reduction on tonnage taxes

Ship Managers

  • Tax is paid at rates equal to 25% of the tonnage tax rates. Ship managers may elect to be taxed at a special corporation tax rate of 4.25%
  • Dividends paid out of profits from ship management profits are exempt from taxation
  • No withholding tax on dividends
  • No capital gains on the sale of shares in ship management companies


Crew Earnings

The earnings of the crew of Cyprus ships are exempt from Cyprus income tax or social security payments. Furthermore, because of Double Taxation Treaties, foreign crew may enjoy total freedom from taxation in the country of their nationality or residence.