Tonnage & Yacht tax regimes

  • Tonnage tax regimes

Cyprus and Malta have two of the most competitive tonnage tax schemers, as approved by the European Commission, compatible with the Guidelines on State Aid to Maritime Transport.

The beneficiaries under these tonnage schemers are shipowners, ship managers and charterers who are subject to an annual tonnage tax which is calculated on the net tonnage of the qualifying ships they own, charter or manage.

At Michael Kyprianou & Co. LLC we advise commercial shipping stakeholders on the most efficient tax planning for their businesses, guiding you through and assisting in respect ofregistration and qualifying processes under these regimes.

  • Yacht leasing scheme

Due to the rapid growth of Cyprus and Maltese Yachting, the countries provide respective favourable tax regimes. In fact only recently, renewed procedures for yacht leasing taxation have emerged. These procedures are compatible with both EU and respective local laws and regulations. According to the new procedures, the use and enjoyment of the yacht will be determined based on the distances travelled and not by reference to the type and size of the yacht, which was the method followed initially.

At Michael Kyprianou & Co. LLC, we provide comprehensive advice on all tax and VAT matters to clients interested in joining the Cyprus or Maltese Yachting Scheme, as well as negotiation and contact drafting for the purchase or leasing of the vessel, custom clearance and respective procedures.