CYPRUS Trends and Developments Contributed by: Adam Montanios and Nicolas Montanios, Montanios & Montanios
relating to issues that will increase the competitive - ness of the flag and assist in a number of matters. The related bill is currently being drafted and is expect - ed to be brought before parliament by mid-2026. Other Shipping Deputy Ministry Developments The Shipping Deputy Ministry, in an effort to simplify its procedures for vessel registrations under the Cyprus flag and the procedure for a Cyprus-flagged vessel’s change of name, has recently abolished the need for the filing of a Carving and Marking Note signed by a surveyor of a recognised Classification Society. Pillar Two Legislation Cyprus recently transposed Council Directive (EU) 2022/2023 into local legislation relating to a global minimum level of taxation at 15% on multinational enterprises and large domestic groups with annual consolidated revenues exceeding EUR750 million.
The Pillar Two legislation includes an exclusion for shipping income, covering profits earned from the transportation of passengers or cargo in international traffic. This is an important exemption for maritime groups using the Cyprus flag, since the Cyprus TTS results in an effective rate of tax which is lower than the mini - mum tax rate of 15% under such legislation. International Maritime Organization (IMO) Council Cyprus has recently been re-elected to the IMO Coun - cil, placing 7th in the 2025 elections (compared with 12th in 2023).
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