Promoting the Cyprus Shipping Sector
As part of the ongoing promotion of the Cyprus shipping sector, the Minister of Transport, Communications and Works of Cyprus, Mr. Demetriades, recently visited the USA for the purpose of attracting shipping investments from the US to Cyprus. The trip was highly successful in creating industry awareness.
Locally, as part of the promotion of Shipping in Cyprus, and apart from the existing tax benefits applicable to ship owners of Cyprus vessels, the Council of Ministers of Cyprus has also approved a new measure which concerns foreign ship-owners and their family members. Specifically, Article 18 of the National Guard Law provides for obligatory national service for all male citizens of the Republic of Cyprus on the completion of their 18th year of age and up to the age of 50. Since the law applies to all male residents of Cyprus, it operates as a disincentive for foreign ship-owners for migrating to Cyprus. Bearing in mind the difficult financial position Cyprus has been in, following the financial crisis, the Minister of Defense exercised the powers vested in him under Article 28 of the National Guard Law, and proceeded to discharge all the male ship-owners and the male members of their family over the age of 18, who move to Cyprus and who either own Cyprus-flagged ships or Shipping companies with registered office in Cyprus, from the relevant duties.
The Shipping Industry in Cyprus constitutes an essential source of financial income to the Island, hence any measures taken in an attempt to promote the industry are always welcome.