Cyprus Boat, Yacht and Vessel Registration

Overall, registering a ship under the Cyprus flag can provide a range of benefits for ship owners, including tax benefits, an EU flag, a good reputation, low registration fees, and an easy registration process.

Conditions of Ownership

A ship may only be registered in the Register of Cyprus Ships if:

A) More than fifty percent (50%) of the shares of the ship are owned:

• by Cypriot citizens or
• by citizens of other Member States (including the EEA countries) who in the instance of not being permanent residents of the Republic will have appointed an authorised representative in the Republic of Cyprus, or

B) The total (100%) of the shares of the ship are owned by one or more corporations, which have been established and operate:

• in accordance with the laws of the Republic of Cyprus and have their registered office in the Republic, or
• in accordance with the laws of any other Member State and have their registered office, central administration or principal place of business within the European Economic Area and which will have either appointed an authorised representative in Cyprus or the management of the ship is entrusted in full to a Cypriot or a Community ship management company having its place of business in Cyprus, or
• outside Cyprus or outside any other Member State but controlled by Cypriot citizens or citizens of Member States and have either appointed an authorised representative in Cyprus or the management of the ship is entrusted in full to a Cypriot or a Community ship management company having its place of business in Cyprus. The corporation is deemed to be controlled by Cypriots or citizens of any other Member States when more than fifty percent of its shares are owned by Cypriots or citizens of any other Member States or when the majority of the Directors of the corporation are Cypriot citizens or citizens of any other Member State.

Mortgages on Cyprus flagged ships

Once a ship has been registered under the Cyprus flag, a mortgage can be created thereby securing a loan or other financial obligations on conditions agreed to by the parties, without the need for exchange control permission. The creation of a mortgage under Cypriot laws is not allowed on ships registered parallel-in in the Register of Cyprus Ships.

Age limit of Ships

Ships of any size and type may be registered in the Register of Cyprus Ships or the Special Book of Parallel Registration as long as they comply with the provisions contained in the merchant shipping legislation and the circulars of the Shipping Deputy Ministry and satisfy certain conditions according to their age and type.

Recognised Classification Societies

It should be noted that all ships 24 meters and above must be classed with one of the classification societies that the Cypriot Government recognises. These are ABS, BV, CCS, CRS, DNV, IR, KR, LR, NK, PRS and RINA.

Types of Registration:

Provisional registration of a ship may remain in force for six months. Thereafter, it may be renewed once, for a further three months. The provisional registration is applicable only foe ships outside of the territorial waters of Cyprus.

Permanent registration. The permanent registration of a provisionally registered ship must take place within 6 months (or 9 months if the 3-month extension has been obtained) from the date on which she was provisionally registered.

Parallel (Bareboat) Registration. The Cyprus legislation provides for the two forms or bareboat registration internationally accepted e.g. the “Parallel-in” registration and the “Parallel-out” registration of vessels, provided certain prerequisites are fulfilled.

The Parallel-in registration offers the possibility to a foreign flag ship on bareboat charter to be registered in parallel under the Cyprus flag for a period, usually of 2 years. This period could be renewed. On the other hand, the Parallel-out registration offers the possibility to owners of Cyprus ships to bareboat charter them to a foreign person or company and to effect a “Parallel” registration in a foreign register for the duration of the charter part. The period is usually for 3 years and it could be renewed.

Our Shipping & Maritime Legal Services

Our highly-qualified and experienced specialist team can assist with all legal aspects of shipping and maritime law including: 

• Registration (provisional, permanent, bareboat – parallel registration) of any kind of vessels in the Register of Cyprus Ships 
• Registration of any kind of boats in the Small Vessels’ Registry of the Shipping Deputy Ministry of Cyprus 
• Registration of ships and companies under the Cyprus Tonnage Tax System  
• Registration of yachts under Cyprus flag 
• Registration of yachts and boats in foreign jurisdictions (e.g. Poland, Belgium, Netherlands, UK, Malta etc.) 
• Deletion of vessels and yachts from foreign jurisdictions  
• Services of authorized representative in Cyprus 
• Drafting and registration of ship mortgages and other security documents for the financing of ship acquisition and the registration of same. 
• Assistance to owners of Cyprus-flagged vessels to obtain license from the Shipping Deputy Ministry to hire a private security company in accordance with the Protection of Cyprus Ships Against Acts of Piracy and Other Unlawful Acts Law of 2012
• Assistance for the certification and registration of coastal passenger and small passenger vessels under Cyprus flag, as per the Coastal and Other Passenger Vessels Regulations of 2012 (P.I. 278/2012)
• Ship’s sale and purchase agreements  
• Charter party (voyage, time and bareboat charterparties) contracts  
• Seafarers (master and crew) contracts 
• All kind of registry transactions under Cyprus flag (deletion, transfer of ownership of vessels, renewal of certificates, change of particulars and ships’ name, discharge of mortgages, payment of tonnage tax etc.) 
• Any request related to the procedures before the Cyprus Customs and Excise Department (e.g. issuance of T2L certificate, temporary importation of pleasure yachts, issuance of customs clearance certificates etc.)

Please feel free to contact our Shipping & Maritime Law Department at shipping@mavronichis.com if you have any question and to discuss how we can be of assistance to you.

DISCLAIMER:

PARIS MAVRONICHIS & CO LLC accept no duty of care or liability for any loss occasioned to any person acting or refraining from action as a result of any material in this publication.

The material contained herein is provided for informational purposes only and does not constitute legal advice nor is it a substitute for obtaining legal advice from an advocate.  Each situation is unique, and you should not act or rely on any information contained herein without seeking the advice of an experienced advocate. PARIS MAVRONICHIS & CO LLC will be glad to assist you in this respect.