Fees

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Registration Fees

Although Cyprus has much to offer in terms of infrastructure and maritime administration ultimately the bottom line is costs. In terms of registration fees and taxes, Cyprus is considered to be among the most competitive shipping centres in the world. The fees listed below are lower than those of Cyprus’ main competitors.

The fees are expressed in Cyprus Pounds (CY£1 = 100 cents). The average exchange rate during the period 2006 was CY£1 = US$2,17 and CY£1 = EURO 1,74.

The registration fees are calculated as follows:

For vessels other than passenger ships

For passenger ships

Tonnage Tax

For vessels other than passenger ships the tonnage tax is calculated as follows:

The basic charge is CY£100 and the gross tonnage increment is calculated as follows:

The age multiplier is shown below:

FOR PASSENGER SHIPS

For passenger ships the tonnage tax payable is double that payable for other vessels..

TERMS OF PAYMENT

The tonnage tax is payable in biannual instalments, on 1 January and 1 July each year, and in advance not later than the 31 January and 31 July in each year. Late payment results in the imposition of a 5 % surcharge for the first month in arrears and 1 % additionally for each subsequent month.

In case of deletion of a vessel from the Register of Cyprus Ships any tonnage tax paid in advance for the remaining period up to the date on which the next instalment becomes due is refunded. 

Reduction of Tonnage Tax

Section 8 of the Merchant Shipping (Fees and Taxing Provisions) Laws, 1992-2004 provides for the reduction and refund of the tonnage tax in the cases listed below.

TECHNICAL MANAGEMENT AND CREWING BY CYPRIOT BASED COMPANIES
If the vessel’s technical management and crewing is carried out by a Cyprus shipmanagement company or a Community shipmanagement company operating in Cyprus and staffed with a sufficient in number and qualifications personnel, a 30 percent reduction of the tonnage tax is allowed provided the relevant documentary evidence is submitted to the Department of Merchant Shipping in advance of the period for which the reduction is claimed.

LAID-UP SHIPS

If the ship is laid up for a period of more than 3 consecutive months the tonnage tax payable is reduced by 75 percent for the period during which the vessel is laid-up.

The maximum reduction or refund of tonnage tax described above cannot exceed 50 percent of the tonnage tax due.

Fees for the Registration, Transfers or Discharge of Mortgages

For the registration or transfer of a mortgage or transfer of interest in a mortgage with the Registrar of Ships, the fees payable are calculated as follows:

No fee is payable for the discharge of mortgages.

Fees for the Transfer of Ships

For the transfer of a ship to the ownership of another Cypriot company, the fees payable are calculated as follows:

Deletion of a Ship from the Register of Cyprus Ships

No fee is payable for the deletion of ships. However, all other statutory fees and taxes due or in arrears at the time of the vessel’s deletion should be paid.

Other Fees

For various other services or for the issue of certain certificates other minor fees are also payable

Fees and Taxes Payable on Provisional Registration

The following fees and taxes are payable at the time of the provisional registration of a vessel:

These should be paid not later than the date on which the provisional registration of the vessel will be effected.

Fees and Taxes Payable for the Extension of the Period of Provisional Registration
For extending the period of the provisional registration of a vessel under the Cyprus flag for a maximum period of 3 months, the following fees and taxes are payable:

These should be paid prior to the expiry date of the period of provisional registration.

Fees and Taxes Payable on Permanent Registration

If the relevant registration fees have been paid at the time of the provisional registration of the vessel and the period of provisional registration has not expired, then no other fees and taxes are levied for the permanent registration of a vessel apart from:

No other fee is payable if the permanent registration takes place before the expiry of the provisional registration period. Otherwise the fees payable on provisional registration are payable anew..

Fees and Taxes Payable Annually

The following fees and taxes are payable each year:

Fees and Taxes Payable on Parallel (Bareboat) Registration

The initial registration fees for the parallel registration of a foreign vessel under the Cyprus flag (parallel-in registration) are 20 percent higher than those applicable to the provisional or permanent registration of the vessel. If the foreign vessel under the Cyprus flag is deleted and thereafter re-registered and the chartering is effected to the benefit of the same charterer prior to the deletion, the re-registration fees are reduced by 50 percent. There is no increase in the tonnage tax or other dues payable and the vessel is subject to the same financial obligations as other Cyprus ships.

A Cyprus ship registered in parallel in a foreign register (parallel-out registration) has the same financial obligations as all other Cyprus ships, with the exception of the fees for the issue or renewal of the radio licence. If the vessel is deleted from the Cyprus Registry prior to the termination of her status of parallel-out registration, that part of the tonnage tax which is proportional to the period from her deletion until the termination of her status of parallel registration is reimbursed upon application.

The financial obligations of vessels (Cypriot and foreign) registered in parallel are payable in advance for the entire period of the parallel (bareboat) registration.