CYPRUS Trends and Developments Contributed by: Adam Montanios and Nicolas Montanios, Montanios & Montanios
Montanios & Montanios LLC Diagoras House 16 Panteli Katelari Street CY-1097 Nicosia Cyprus Tel: +357 22660766 Fax: +357 22678777 Email: montanios@montanioslaw.com.cy Web: www.montanioslaw.com.cy
General Cyprus is a full member of the European Union (EU), and has been at the forefront of international shipping for over six decades. Today, Cyprus: • has the third largest merchant fleet in Europe and the 11th largest globally; and • is the largest third-party ship management centre in Europe, and is among the top three worldwide. The Cyprus flag is a high-quality sovereign flag, which is included in the “White List” of both the Paris and Tokyo Memorandums of Understanding. The Cyprus Ship Registry has grown steadily over the last two years, recording a 21% increase in gross ton - nage since September 2023. In addition, and most importantly, Cyprus has devel - oped into an international maritime centre with a constantly growing shipping cluster, hosting more than 250 shipping-related companies – including ship-owners, charterers, managers and providers of numerous related shipping services, and employing more than 5,000 people onshore and 55,000 seafarers aboard Cyprus-flagged ships. The Shipping cluster’s contribution to Cyprus’s GDP now exceeds 7%. Legal System Cyprus is a business-friendly common law jurisdic - tion, and most of Cypriot law has been modelled on English law.
The registration of ships under the Cyprus flag is gov - erned by the Merchant Shipping (Registration of Ships Sales and Mortgages) Law of 1963, as amended, which was based on the similarly named English law. Matters relating to seafarers on board Cyprus-flagged vessels are governed by the Merchant Shipping (Mas - ter and Seamen) Law of 1963, as amended, and all matters relating to working conditions by the Maritime Labour Convention 2006 (Ratification) and for Matters Connected Therewith Law of 2012, as amended. The third major merchant shipping statute is the Mer - chant Shipping (Fees and Taxing Provisions) Law of 2010, as amended, which deals with all financial matters, including the Cyprus tonnage tax system (explained below) which has been re-approved by the EU. Finally, EU Regulations relating to shipping apply to Cyprus-flagged vessels, and Cyprus has adopted most international shipping conventions. Ship Registration Pursuant to Cyprus merchant shipping law, there are two types of ship registration in Cyprus: • ownership registration (provisional and permanent); and • bareboat charter (parallel) registration. Such registrations are effected by the Cypriot Regis - trar of Ships at the Shipping Deputy Ministry.
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