Yacht Registration in Cyprus

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Updated: May 19, 2025

Registering a yacht in Cyprus with the Registrar of Cyprus Ships gives owners access to one of the world’s most reputable maritime flags. At Ermina Papasolomou Co & LLC, our lawyers are fully qualified to handle all documentation and legal requirements, ensuring a smooth and reliable process.
We assist individuals, companies, and shipping operators with every stage of yacht and vessel registration.

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⚓Types of Yacht Registration in Cyprus

Cyprus offers three registration options, which apply to yachts, ships, and other vessels:
1.    📝 Provisional Registration

• Valid for 6 months (renewable once for 3 months).

• Can be arranged either in Cyprus or at any Cyprus consulate abroad.

2.    📄 Permanent Registration

• The most common type of registration.

• If previously registered abroad, a certificate of deletion from the former registry is required.

3.    🔁 Parallel Registration

• Parallel-In: A foreign-registered vessel under bareboat charter by a Cyprus company can fly the Cyprus flag for 2 years (renewable).

• Parallel-Out: A Cyprus-flagged vessel may be bareboat chartered to a foreign operator and appear in a foreign registry for the charter period.

💡 Bareboat charter = The owner leases the vessel for a fixed time; the charterer manages crew, fuel, insurance, and maintenance.

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📑 Documents Required

Applications are submitted to the Registrar of Cyprus Ships (Shipping Deputy Ministry). Core documents include:

• Application for registration

• Declaration of Owner

• Builder’s Certificate

• Bill of Sale

➡️ The full list (13 documents) is available here: gov.cy – Required Documents.
✅ Vessels must also be certified under International Maritime Organisation (IMO) standards before applying.

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👥 Who Can Register a Yacht in Cyprus?

Yacht ownership must meet one of these conditions:

• Cypriot citizens or companies registered in Cyprus.

• EU/EEA citizens or companies with:

o    An authorised representative in Cyprus, or
o    A management agreement with a Cyprus ship management company.

 

• Non-EU corporations controlled by EU/EEA citizens, provided they appoint an authorised representative in Cyprus.

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Ownership requirements:

• More than 50% of shares held by Cypriot/EU/EEA citizens; OR

• 100% of shares held by companies incorporated in Cyprus, or EU/EEA companies with a Cyprus representative; OR

• Non-EU/EEA companies owned by Cypriot/EU/EEA citizens with an authorised Cyprus representative.

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🛠 Registration Procedure

If you’re not a permanent resident of Cyprus, you must appoint an authorised representative (such as our firm) to act on your behalf.

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Authorised representatives can be:

• A Cypriot citizen

• An EU citizen resident in Cyprus

• A company incorporated under Cyprus law

 

Steps:

1. Appoint a representative (if required)

2. Prepare and submit documents

3. Pay registration fees (small vessels: €34.17)

4. Await approval from the Registrar

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🚫 Grounds for Rejection

Applications may be refused if:

• The vessel is banned under Port State Control rules.

• It was detained 3+ times in the last 2 years.

• It is used only for inland navigation (canals, lakes, dams).

• The vessel exceeds the age limit of 35 years.

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🇨🇾 Benefits of the Cyprus Flag

✅ Recognised EU flag on the Paris & Tokyo MOU White List
✅ Signatory to major international maritime conventions
✅ English-language paperwork
✅ 3rd largest fleet in the EU, 11th worldwide
✅ Limassol: the largest ship management centre in the EU
✅ Excellent performance in safety and compliance indicators (ICS 2022/23)
✅ Attractive tax incentives for yacht owners

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💶 Costs, VAT & Tax Benefits

 

• Annual fee to the Shipping Deputy Ministry: €300

• Small vessel registration: €34.17

• Circulation license:

o    Commercial yachts → annual renewal (€51.26 inspection fee)
o    Private yachts → renewed every 5 years (€51.26 inspection fee)

⚖️ Tax Benefits

 

• VAT on yachts: Effective rates as low as 3.4% (up to 8.5%)

• Tonnage tax system: Low tonnage-based tax on commercial vessels

• Exemptions:

o    No tax on operational or management profits
o    No tax on qualifying owners’ income from yacht operations
o    No tax on dividends from the sale or operation of qualifying yachts

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📜 Relevant Legislation

• Merchant Shipping (Registration of Ships, Sales & Mortgages) Laws (1963–2005)

• Merchant Shipping (Masters & Seamen) Laws (1963–2002)

• Merchant Shipping (Fees & Taxing Provisions) Law (2010–2020)

• High-Speed Small Vessels Regulations (1999, P.I. 121/1999)

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🏛 Classification Societies

Certain registrations require confirmation from a classification society (e.g., Lloyd’s Register, RINA, Bureau Veritas). These bodies verify compliance with construction and design standards, helping reduce insurance premiums.