TT benefits

  • Ship owners  of community  flag  ships  and foreign  flag ships may opt to be taxed under the tonnage  system
  • A charterer who  charters a ship  under BB, demise, time or voyage is eligible for the TT system provided it satisfies certain criteria
  • A ship manager who provides  crew and/or technical ship management  services  is eligible for the TT system  provided is satisfies certain criteria Why use Cyprus  Ship Registry ?



  • One of the largest registries in the EU and worldwide
  • Availability of provisional registration (valid for 6 months )
  • Availability of two forms of parallel(bareboat) registration enabling  chartered ships  to be registered under two flags for a  period of time
  • Competitive registration fees


As of 2010,the new Tonnage  Tax (‘TT’) regime applies  to the qualifying  ship  owners ,ship  owners, ship charterers and  ship managers  of qualifying ships  engaged  in qualifying activities .The qualifying  ship owners, managers  and charterers  under TT Regime are exempt from income  tax on their  shipping  activities  such as:

  • Exploitation of a qualifying (chartered) ship in a qualifying shipping  activity  or rendering crewing  and/or  management  services  to any qualifying ship
  • Disposal of a qualifying ship or interest   or share in the  qualifying hip
  • Disposal of shares in a ship owning company
  • Dividends paid (directly or indirectly) out of the profits described above
  • Bank interest earned  on working capital  or shipping  revenue ,provided that the  said working  capital  or  shipping revenue, is used to pay expenses arising to the qualifying person out of  the qualifying  activity

The European Commission considered  that the  new TT regime  is in line  with the European  Union’s Guidelines on State Aid to maritime transport and authorized  the TT regime until 31 December  2019.


TT is payable  on 31st March each year. It is calculated  with reference to the net tonnage  of the qualifying ships under one’s  ownership, charter or management .

TT rates  

Any residual tonnage of less than100 units of net tonnage  shall be charged proportionally.



  • Certainty as to the amount of tax payable each year
  • Wide range of qualifying activities
  • Wide range of qualifying vessels
  • Crew members of  qualifying Cyprus flagged(including parallel in registration )  ships  are  exempt  from income tax
  • Submission of TT can be  effected  electronically  TT regime  can be  easily used alongside  income tax if both qualifying and no qualifying  activities  are conducted.