The Cypriot shipping sector
can provide consistent business perspectives to the investors who are interested in opening a company
in this field. Following a massive infrastructure project, the shipping sector in Cyprus
is experiencing a rapid increase in the gross tonnage
. This increase is a direct result of a unique taxation system which was implemented by the Cypriot authorities
. It is important to mention that this taxation scheme
is currently being adopted by other countries as well. Our team of lawyers in Cyprus
can assist investors with more legal details referring to the Cypriot shipping industry.
The shipping industry in Cyprus
The shipping industry is very important for the Cypriot economy because it represents a massive industry amongst the European countries. More exactly, the Cypriot shipping industry represents the world’s tenth largest merchant fleet. At a European level, Cyprus represents the third largest shipping industry.
As mentioned above, the Cypriot shipping sector is a pillar industry for the local economy, as it represents 7% of the Gross Domestic Product (GDP).
Those who want to register a company
in the shipping industry
should also know that Cyprus
is the third largest ship management centre
established at the level of the European Union (EU).
However, the local authorities declared that the shipping sector can become more competitive and in this sense, they aim to increase the shipping field up to 8,5% GDP.
The tonnage tax system in Cyprus
The shipping industry
is developing in Cyprus
as the local authorities imposed a tax measure
, which is known as the tonnage tax system
. Through this policy, the Cypriot authorities
managed to increase the number of companies registered in Cyprus
. If in 2009, the total number of registered companies
was situated at 39, while at the level of 2015, there were 136 companies.
The tax was introduced in 2010 and its effects were easily noticed at the end of the year, when the number of companies incorporated in this field increased to 53.