Growing Trends for the Cypriot Shipping Sector
- Written by: Bridgewest
- Posted: 2016-11-17
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.
Our attorneys in Cyprus can offer more details on the policies carried out in this field.
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.
Businessmen interested in receiving more detail on the Cypriot shipping sector are invited to contact our law firm in Cyprus.