The sea and seafaring have been, from antiquity, a source of commercial opportunity and a part of Cyprus life. In this guide, you will find all the information needed for yacht registration in Cyprus.
The Cyprus flag carries many benefits:
Note that the so-called Turkish republic of northern Cyprus is not a recognized state and has no status in the international community. Therefore no yacht can be legally registered under its flag.
Registration costs and fees are low. For example, a 300 EUR fee per annum is paid to the Shipping Deputy Ministry.
The Republic of Cyprus has one of the most attractive VATs on yachts systems in the EU. Under the VAT scheme for yachts, the VAT rate can be as low as 3.4% of the yacht’s value (8.5% highest).
Other yacht tax benefits include:
Note that a commercial yacht is a qualifying ship; a private yacht is not.
The relevant legislation for ship registration in Cyprus is:
The same rules apply to yachts, ships, and other vessels.
Cyprus has three types of registration: provisional, permanent and parallel.
Note: A charterparty is a contract to lease a ship. A bareboatcharter is when the owner leases the vessel to the charterer for a fixed period; the charterer is responsible for the crew, fuel, insurance, and maintenance.
Where: Registrar of Cyprus Ships (Shipping Deputy Ministry).
The list of necessary documents is long and includes:
Other documents depending on the case.
The complete list (20+ documents as of 31.05.2022) at: https://www.dms.gov.cy/
Citizens of Cyprus or a company established in Cyprus; or,
Citizens of the EU/ European Economic Area (EEA) or a company registered within those and have appointed an authorized representative in Cyprus or have given the management of the yacht to a Cyprus ship management company; or,
Corporations registered outside the EU/ EEA but controlled by EU citizens and appoint an authorized representative in Cyprus.
Consult and appoint an authorized representative in Cyprus to determine the application requirements. The authorized representative can be:
Pay fees and taxes (registration costs).
Submit documentation for approval.
Source: Cyprus Government Policy on the Registration of Ships, Annex 1, dms.gov.cy.
For some types of registration, you need a confirmation from a classification society.
A classification society ensures that a vessel follows certain construction, design, and technology requirements.
The confirmation certificate does not guarantee seaworthiness or safety, only that the yacht complies with society’s rules. However, the certificate increases the price of a vessel and lowers the insurance premium.
Societies are independent bodies with no commercial interests.
Ten of the most famous of these societies, including Lloyd’s Register and Registro Italiano Navale (RINA), American Bureau of Shipping, Bureau Veritas, and Nippon Kaiji Kyokai are represented by IACS (International Association of Classification Societies) based in London. The IACS (iacs.org.uk) was the original yacht classification society.
Others include the Chinese Classification Society (CCS) and the Russian Maritime Register of Shipping (RS).
Under Cyprus law, only lawyers registered with the Cyprus Bar Association can draft the documents necessary to carry out the registry transactions for ships and vessels.
Our team of professional lawyers provides a variety of legal services and is able to help you with all the relevant requirements, giving expert advice on every aspect of yacht and ship registration in Cyprus.
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