Why is it profitable to register a yacht in Cyprus

Why is it profitable to register a yacht in Cyprus

Yacht registration in Cyprus offers a number of advantages. In this article, we will consider the main ones:

• No tax on profits from the operation or management of a yacht registered in Cyprus, or on dividends received from the company that owns the yacht.
• No income tax on the profits of a Cyprus yacht company (including yacht chartering).No capital gains tax on the sale or transfer of a Cyprus registered yacht or shares in a yacht owning company.
• No inheritance tax on inheritance of shares in a vessel or company that owns the yacht.
• No income tax on the salaries of officers and crew members.
• Low registration costs.
• Favorable tonnage taxation scheme based on the gross tonnage of the yacht.
• No stamp duty on ship mortgage deeds or other security documents.
• Double Tax Treaties with over 43 countries.
• Lack of exchange controls.
• Low opening and operating costs for Cypriot companies.
• European Union (EU) flag.
• Classification of the flag of Cyprus in the White List of the Paris and Tokyo Memorandums of Cooperation.
• Offices worldwide offering services to Cypriot ships.
• A network of local Cyprus yacht inspectors covering important ports around the world.
• Member of all international maritime conventions on safety and pollution prevention.
• Bilateral agreements with more than 23 countries, according to which Cypriot yachts receive either national treatment or favored treatment in ports of other countries.
• There are no restrictions on the nationality of the crew members.

The above is for informative purposes only.  Further professional advice should be sought for each particular case. Our firm does not accept any responsibility for any loss or damage occurring by acting on the basis of this information.