Shipping 2026

CYPRUS Trends and Developments Contributed by: Adam Montanios and Nicolas Montanios, Montanios & Montanios

Cyprus-flagged vessels are being streamlined and simplified. Abolition of Stamp Duty As of 1 January 2026, the Stamp Duty Law, which affected a number of shipping transactions, has been abolished. Technical Standards The Shipping Deputy Ministry has established tech - nical requirements for certain categories of vessels below 500 gross tons (GT) with respect to their reg - istration in the Register of Cyprus Ships and their operation under the Cyprus flag. The purpose of such technical standards is to specify certain technical requirements for such vessels (including yachts and mega-yachts) in areas not covered up to that date by national, EU or international legislation. In particular, these standards are applicable to the fol - lowing categories of vessels: • Category A – cargo ships of more than 24 metres in load line length and below 500 GT; • Category B – motor or sailing vessels used for pleasure and engaged in trade, of more than 24 metres in load line length and below 500 GT, carry - ing up to 12 passengers; • Category C – motor or sailing vessels used for pleasure and not engaged in trade, of more than 24 metres in load line length and below 500 GT, carry - ing up to 12 passengers; and • Category D – vessels used for pleasure and engaged in trade, carrying from 13 passengers up to 36 passengers. Green Incentives The Shipping Deputy Ministry has set up a range of green incentives with the aim of rewarding vessels demonstrating effective emissions reductions. Intro - ducing such incentives simultaneously encourages and rewards ship-owners who opt for lower emissions or who use alternative drives. As from fiscal year 2021, annual tonnage tax is reduced by up to 30% for each vessel that success - fully demonstrates proactive measures for lowering its environmental impact, ensuring that ship-owners

are rewarded for sustainable shipping efforts. This is achieved by comparing what emissions reductions are required of a vessel with what it actually achieved. However, any vessel detained for any reason during a port state control inspection and which violates any regulation of the European Commission related to environmental protection will not be eligible for the incentive. The Shipping Deputy Ministry believes that incen - tives such as this will encourage greater environmen - tal sustainability across the global industry, while also enhancing Europe’s competitive maritime advantage in new green technologies. This creates opportunities for jobs and growth, providing a first-mover advantage to the EU shipping industry. In relation to such initiatives, the Shipping Deputy Ministry: • became a signatory to the “Declaration on Zero- Emissions Shipping by 2050” and to the “Green Shipping Challenge” initiatives launched at COP27; and • has organised a virtual debate on the European Commission’s proposed Emissions Trading System for shipping, as well as a live SWOT analysis hybrid event on the potential of low- and zero-emission fuels for shipping, in association with the University of Houston. Digitalisation Programme The Shipping Deputy Ministry is currently undertak - ing a wide-ranging digitalisation project expected to increase both its efficiency and the range of services available through its online portals. A public tender for the digital transformation of the Shipping Deputy Ministry has been awarded, and the project is co-financed by the EU. It aims to transform the business processes/workflows of the Shipping Deputy Ministry and to maximise its operational effi - ciency based on three key principles: • the establishment of the “one-stop shipping cen - tre”; • seamless process integration; and

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