CYPRUS Trends and Developments Contributed by: Adam Montanios and Nicolas Montanios, Montanios & Montanios LLC
Montanios & Montanios LLC Diagoras House 16 Panteli Katelari Street CY-1097 Nicosia Cyprus Tel: +357 226 607 66 Fax: +357 226 787 77 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 internation - al 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 Understand - ing. In addition, and most importantly, Cyprus has developed into an international maritime centre with a constantly growing shipping cluster, host - ing more than 250 shipping-related companies – including ship-owners, charterers, managers and providers of numerous related shipping services, employing more than 5,000 people onshore and 55,000 seafarers aboard Cyprus- flagged ships.
Legal System Cyprus is a business-friendly common law juris - diction, and most of Cypriot law has been mod - elled on English law. The registration of ships under the Cyprus flag is governed by the Merchant Shipping (Registra - tion 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 (Master 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 Merchant 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
170 CHAMBERS.COM
Powered by FlippingBook