Prolongation of a Tonnage Tax and Seafarer Scheme in Cyprus

The European Commission on 16 December 2019 approved under EU State aid rules, five schemes to support maritime transport, including the prolongation of the Tonnage Tax and Seafarer Scheme of Cyprus. The scheme encourages ship registration in Europe and contributes to the global competitiveness of the sector without unduly distorting competition.

The Commission assessed the scheme under EU State aid rules, in particular its Guidelines on State aid to maritime transport (the “Guidelines”) and established that the scheme is in line with its interpretation of the Guidelines. One of the measures of the Guidelines is tonnage tax, whereby shipping companies can apply to be taxed based on a notional profit or the tonnage they operate, instead of being taxed under the normal corporate tax system.

As regards the tonnage tax scheme of Cyprus, the Commission found that the scheme complies with the rules limiting tonnage taxation to eligible activities and vessels.

The non-confidential version of the decision will be published under the case number SA.51809 for Cyprus.

Cyprus Flag - abolishment of the initial registration fees

At the opening of Maritime Cyprus 2019, held between 6 and 9 October 2019, the introduction of a revised and more simplified pricing policy of the Cyprus Flag was announced, which includes the abolishment of the initial registration fees for ocean-going vessels.

Maritime Cyprus 2019 - the Conference theme, "SEA CHANGE"

Summer Law Internship Programme

The office hosts a Summer Law Internship Programme aimed at delivering students practical legal experience to assist with their studies and knowledge of Law. This summer, the office is happy to have been joined by Mr Darius Self, a law student at the University of East Anglia.

"For the second time, I have been lucky enough to have joined the Law Office over the summer. I find this time very beneficial and insightful, with my knowledge of law being ever heightened. During my internship I have been tasked with over viewing and proof reading various documents relating to ship sale and purchase and ship / yacht registrations. My next task includes a company registration and a trade mark filing. I'm already feeling a lot more confident."

- Darius Self, summer 2019