Insider Business Shipping tax breaks yield positive results

Shipping tax breaks yield positive results

The number of shipping companies under the Cypriot tonnage tax system is on the rise over the past decade, according to a report accompanying a draft bill recently sent to Parliament.

Specifically, the Deputy Ministry of Shipping noted that the number of companies in the Mediterranean island’s tonnage tax system between 2010 and 2019 has risen and also confirmed the attractiveness of the system and wider positive economic impact, Phileleftheros reports.

Over its decade-long implementation, the system has proved to be very successful also in regard to audits carried out by the European Commission and is – therefore – expected to be renewed for another 10 years.

“Tax breaks provided in the form of annual tonnage tax for Cyprus ships in the Cyprus Registry, as well as for Cyprus-based ship-management companies and for further sailors and sailors on board Cyprus ships improved the competitiveness of the Cypriot maritime industry and supported the Cypriot economy throughout the island’s financial crisis,” the report said.

It is believed that updated state contribution plans to be in implementation between 2020-2029 will be taken up by the 1,500-2,000 shipping companies operating in Cyprus (1,600 ship owners, 150 freighters, 80 ship managers) as well as by a number of seafarers who will receive the relevant income tax exemption. The estimated total annual state contribution is around €15.4 million.

The state contribution is expected to be largely covered by existing operations of companies already in Cyprus and from their further expansion of their activities, according to the report.

In addition, new shipping activities are expected to take place as a result of new attractive measures listed in the proposed bill.



Number of companies registered in the tax system:

Category                      2010      2019

Ship managers             29           48

Freight Forwarders     14           48

Foreign ship owners      9          119

Total                               52         220


By Demetra Landou  


Read more:

EU trusts Cyprus shipping industry, says Deputy Minister


Top Stories

Triple digit covid cases for a 3rd day running but going down-101 today One in 18 positive

  One hundred and oney new Covid-19 cases were announced today, out of 2 thousand 781 tests, taking the total number of confirmed patients to...

Sudan says it will discuss trade, migration deals with Israel

  Sudan and Israel will discuss agreements to cooperate on trade and migration issues in the coming weeks, the Sudanese foreign ministry said, signaling steps...

‘Macron a nutcase who’s lost his way’, Erdogan says in new insulting tirade

  Turkish President Tayyip Erdogan said Emmanuel Macron had “lost his way”, in his second sharp criticism of the French leader in two days over...

Armenian community in Cyprus holds Karabakh protest

  The Armenian community in Cyprus held an all-day protest today, condemning the Azeri attack on Nagorno Karabakh. The march went through various areas of Nicosia,...

Spain decrees new state of emergency in COVID-19 fight

  Spanish Prime Minister Pedro Sanchez announced a new state of emergency in an effort to curb soaring coronavirus infections, imposing local nighttime curfews and...


Squash soup

Ingredients: 1 kg pumpkin, cut into small cubes, approximately 5 cups 2 medium (400g) sweet potatoes, cut into cubes, approximately 2 ½ cups 1 chopped leek, only...


No visit to Cyprus is complete without enjoying the traditional meal of many small dishes known as ‘meze’. This large feast, which has been a...

Prawns with fried cheese, barley shaped pasta

Put the barley shaped pasta into a small pan with salted water, bring to a boil and when tender, drain. Peal the prawns leaving...

Salmon and shrimp sheftalies

Mix all ingredients for tabbouli in a bowl and keep to one side so flavours can combine. Prepare the sheftalies: wash and soak the casing...