Download Cyprus An International Shipping Centre Since Antiquity

Cyprus
An International
Shipping Centre
Since Antiquity
Giuseppe ROSACCIO (author), Jacomo FRANCO (engraver),
”Isola Di Cipro” - “Natolia...” (143x192mm),
Viaggio Da Venetia A Constantinopoli..., Venice 1598 or later.
Coloured.
Invest in Cyprus
Invest in Us
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More than 1,000 registered vessels with 21
million gross tonnage are registered under
the Cyprus flag.
•10th largest merchant fleet in the world
•3rd largest merchant fleet in the EU
•Shipmanagement Centre amongst top three
in the world
•largest third party Shipmanagement Centre in the EU
Cyprus has an EU-approved “Open Registry”
regime with a very wide and legally endorsed
Tonnage Tax System (TTS), which has been
introduced with the Merchant Shipping Law
in 2010, and covers the three main “maritime
transport” activities, namely, shipowning,
shipmanagement (crew and technical
management) and chartering.
CYPRUS AN INTERNATIONAL SHIPPING
CENTRE
Cyprus, a Member State of the European
Union, has been an important centre for trade
and commerce since antiquity. The small
but dynamic country has a long established
reputation as a “Centre of Excellence” for
international business activities and retains a
unique cluster of expertise in various industry
segments.
Cyprus is an internationally renowned shipping
centre, which is home to some of the world’s
leading names of the global shipping industry.
The accession of Cyprus to the European
Union in 2004 further boosted the reputation
and overall image of the Cyprus Flag and the
infrastructure of Cyprus Shipping in general.
The Cyprus Shipping Sector makes a
substantial contribution to the Cypriot
economy, with recent figures indicating that
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shipping accounts to approximately 7% of the
country’s GDP.
The country’s unique geographical position
at the crossroads of three continents, the
advanced infrastructure and services, its
very attractive shipping taxation system, as
well as other competitive advantages make
Cyprus the ideal location for shipowning,
shipmanagement, ship chartering and ancillary
shipping related services.
Present facts about Cyprus’ Shipping Sector:
Over 150 shipowning, shipmanagement,
chartering and shipping related companies
controlling a merchant fleet of 2,300
vessels with 50 million gross tonnage, while
employing approximately 4,500 employees
and 55,000 seafarers.
Owners of Cyprus flag ships fall automatically
under the new tonnage tax regime, whereas
ship owners of foreign flag ships, charterers
and shipmanagers may opt to be taxed under
the tonnage tax system (TTS) under certain
conditions.
In addition to the country’s strategic
geographical location, Cyprus maintains a wide
range of competitive advantages through a
high quality maritime cluster, offering efficient
and quality services, including:
•The latest EU-approved Tonnage Tax
System (TTS) with no direct link to corporate tax;
•Competitive ship registration costs and fees;
•No crew/officers nationality restrictions;
•28 Merchant Shipping Bilateral Agreements;
•Signatory to all international maritime conventions on safety, security and pollution
prevention;
•Full protection for financiers and mortgagees;
•White List of Paris and Tokyo MOUs.
Advantages of the Cyprus Tonnage Tax
System (TTS):
•No tax on qualifying shipping activities other
than “Tonnage Tax”;
•No tax on shipping profits made from qualifying shipping activities including profits from the sale of qualifying ships;
•No tax on dividends paid out of profits made from qualifying shipping activities;
•No tax on wages or benefits of seafarers on qualifying Cyprus flag ships.
Cyprus’ Shipping Sector offers
industry benefits, which include:
wider
•Approximately 50 Double Tax Avoidance Treaties;
•No estate duty on the inheritance of shares
in a ship owning company;
•No stamp duty on ship mortgage deeds or other security documents;
•Efficient, qualitative and reliable services to the shipping industry;
•Strong involvement in international shipping
fora (IMO, ILO) and the E.U.
All the above reiterate the enormous potential
that the industry enjoys while also highlighting
its importance within the Cyprus Economy.
To add to these, the existence of word-class
deepwater natural gas reserves in Cyprus’
Exclusive Economic Zone (EEZ) is bringing
new and exciting opportunities, which
naturally the Shipping Sector activities will
be closely connected to. In addition, with
the ongoing energy developments in the
neighbouring countries, prospects may be
there for Cyprus to become an energy hub in
the Eastern Mediterranean.
In any case, Cyprus with its attractive shipping
tax regime, competitive registration fees,
well-regarded shipping legislation, reputation
of safety and maritime expertise, is likely to
remain one of the most important and high
quality shipping industry clusters worldwide.
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A ship may be registered in Cyprus once it
fulfils one of the following criteria
A) More than half (50%) of the shares of the
ship must be owned by Cypriot citizens
or by citizens of Member States of the EU
or of the European Economic Area who
in the instance of not being permanent
residents of the Republic will have to
appoint an authorised representative in
the Republic of Cyprus, or
B) The total (100%) of the shares of the
ship must be owned by corporations,
which operate in accordance with the laws
of the Republic and have their registered
office in the Republic of Cyprus, or they
operate in accordance with the laws
of any other EU or EEA Member State
and have their registered office, central
administration or principal place of business
within the European Economic Area or by
corporations registered outside the EU or
the EEA but controlled by Cypriot citizens
or citizens of a Member State. In both of
the latter cases, they must have either
appointed an authorised representative
in Cyprus or the management of the ship
must be entrusted in full to a Cypriot or
Community shipmanagement company in
Cyprus.
and other unlawful acts, including a legal
framework allowing and regulating the use of
private armed security personnel in high-risk
areas.
Cyprus’ Maritime offices are located in
Limassol (Cyprus), as well as Hamburg
(Germany), New York (USA), London (UK),
Piraeus (Greece), Rotterdam (Netherlands),
and Brussels (Belgium).
The Cyprus Shipping Chamber is the trade
association of the Shipping Industry in Cyprus.
For the last 25 years, the Chamber acts as
an influential body in local maritime affairs,
while actively representing the interest of the
entire major shipowning, shipmanagement,
chartering and shipping related companies
based in Cyprus, both in Cyprus and abroad.
Yachts and other pleasure crafts may also
be registered in Cyprus.
Cyprus adopted a maritime safety policy,
which focuses on the effective control of
ships and the improvement of the quality of
the country’s merchant fleet.
Furthermore Cyprus enacted an Anti-Piracy
Law; a comprehensive and pioneer legislation
for the protection of Cyprus ships from piracy
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Confirming the Commitment to Cyprus:
“The Cyprus Government considers the
Shipping Industry to be a major contributor
to our economy, and one that has significant
potential for further growth. Its reputation
as a solid and serious maritime flag has put
Cyprus on the international map, as a base for
international operations proving to be one of the
best ambassadors for our country. As such we
are fully committed to further support it in any
way we can.
The Ministry of Communications and Works,
through the Department of Merchant Shipping
in close association with the private sector,
continues to improve the operating and legal
framework of the shipping industry. At the same
time it explores new opportunities to ensure
that Cyprus’ attractiveness and competitiveness
as a world-class shipping centre are not only
safeguarded but extended.”
Yiorgos Lakkotrypis
Energy, Commerce, Industry and Tourism
Minister
“The “Troika” Loan Agreement on Cyprus
admittedly brought an end to the financial
uncertainty that surrounded the overall banking
system of Cyprus during that period.
Amidst these developments the EU approved
and re-confirmed Shipping operational and
taxation infrastructure in Cyprus and the Cyprus
flag remained intact and very competitive. It
is most gratifying to see that Cyprus flag users
remain loyal, supporting at the same time, the
efforts to reinforce Cyprus Shipping in order to
continue its significant contribution to the Cyprus
Economy.
We strongly believe that, the high value worth
shipping services and substantial contribution as
foreign and local direct investment into Cyprus’
Economy from Shipping, can be maintained and
enhanced even more, through the introduction of
certain additional measures, as also envisioned by
the EU Integrated Maritime Policy (IMP). These
actions will ensure that the Cyprus Shipping
cluster will grow and remain a substantial
employer of Cypriot and other EU maritime
professionals. Cyprus, as an island State, is fully
surrounded by water. By making the fullest use
of the IMP we can not only maintain the leading
edge as one of the largest, “all-embracing”
Shipping Centres within the European Union and
globally, but we can also grow.
The recent credit rating up-grade by Moody’s,
S&P and Fitch were possible also because the
GDP contribution of the Shipping sector was
maintained at around 7%.
After more than 40 years of international
Shipping presence here, Shipping with its solid
contribution, is in essence a “Vote of Confidence”
for Cyprus and its Economy.”
Capt. Eugen Adami
President of the Cyprus Shipping Chamber
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Contact CIPA or your local Trade Centre of the Republic of Cyprus
Cyprus Trade Centres Worldwide Network
Contact Points:
Athens
+ 30 210 3734822, [email protected]
Beijing
+ 86 1065325057/9, [email protected]
Beirut
+ 961 1 320806, [email protected]
Berlin
+ 49 30 2844596, [email protected]
Dubai
+ 971 4 3575592, [email protected]
London
+ 44 20 7321 4145, [email protected]
Moscow + 7 499 5750315, [email protected]
New York + 1 212 2139100, [email protected]
Paris
+ 33 1 42896086, [email protected]
Tel Aviv
+ 972 3-525 0212, [email protected]
Vienna
+ 43 1 5130634, [email protected]
Warsaw + 48 22 8540177, [email protected]
Limassol + 357 25 848100, [email protected]
Hamburg + 49 40 410 7497, [email protected]
New York + 1 212 686 6016, [email protected]
London
+ 44 20 7321 4100, [email protected]
Piraeus
+ 30 210 453 6371, [email protected]
Rotterdam + 31 10 404 7901, [email protected]
Brussels + 32 2 739 5155, [email protected]
Cyprus Investment Promotion Agency
Severis Building, 9 Makariou III Ave. 4th Floor, Lefkosia 1065, Cyprus
P.O. Box 27032, Lefkosia 1641, Cyprus
T +357 22 441133, F +357 22 441134
E [email protected] www.investcyprus.org.cy
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Cyprus Investment Promotion Agency
Severis Building, 9 Makariou III Ave. 4th Floor, Lefkosia 1065, Cyprus
T +357 22 441133, F +357 22 441134
[email protected], www.investcyprus.org.cy