The EU Commission, under EU state aid rules, has approved the prolongation of Cyprus' tonnage tax scheme, which applies to ship ownership, ship management and ship chartering activities.
Cyprus was the first ever open registry to have a Tonnage Tax System (TTS) approved by the EU and this system has now been prolonged for the next ten years, following extensive negotiation and discussion between the Cyprus Shipping Deputy Ministry and the European Commission.
The system’s prolongation provides stability and certainty for current and future shipping companies flagged with the Cyprus Shipping Deputy Ministry and/ or operating in Cyprus. The prolongation of the system is expected to encourage ship registration in Europe, as well as the presence and growth of shipping companies and maritime operations in the EU. The system contributes to the competitiveness of the EU maritime transport sector while supporting Europe's high environmental and safety standards.
Ranking amongst the top international fleets, the Cyprus Flag averages seven years of age, encompassing over 1,000 oceangoing vessels with a total gross tonnage exceeding 24 million.