As an island nation Cyprus carries an enduring maritime heritage that spans centuries. Engraved in its traditions, identity and economic development Cyprus embraced the sea not only as a means of connection, but also as a foundation for growth and prosperity. Continuing this long- lasting tradition Cyprus is today one of the leading maritime nations, with shipping contributing more than 7% to the country’s GDP, while its broader significance extends into social, political, and diplomatic spheres.
For over six decades, the Cyprus Ship Registry stands as a sovereign flag of quality and reliability. Its establishment in 1963 laid the foundation for Cyprus’s emergence as a global maritime player.
Over time, Cyprus has built one of the world’s largest fleets and developed a strong maritime cluster that today hosts more than 250 shipping and shipping-related companies.
Milestones in this journey include the establishment of the Department of Merchant Shipping in 1978, and the creation of overseas maritime offices in Piraeus, London, Hamburg, Rotterdam, New York and Brussels and Cyprus’s election to the IMO Council.
A pivotal milestone came in March 2018 with the creation of the Shipping Deputy Ministry, an autonomous ministry reporting directly to the President of the Republic. As part of Cyprus’ strategy to strengthen its role as a maritime nation, this institutional upgrade accelerated decision-making, modernised services, and deepened the maritime cluster, giving new momentum to Cyprus shipping.
Recent Initiatives and Reforms
During the last decade, Cyprus has embarked on various ambitious reforms in order to ensure that the shipping sector remains competitive and forward-looking:
• Digital Transformation: The “One-Stop Shipping Centre,” launched in 2023, and the ongoing digitalisation of all SDM services (expected to be fully completed by 2026), provide streamlined, paperless, and 24/7 services to shipowners and managers
worldwide.
• Green Incentives: Since 2024, shipowners of ships flying the Cyprus flag and EU community ships have been eligible for up to 30% reductions in tonnage tax when implementing proactive environmental measures. These incentives align Cyprus with EU and IMO decarbonisation objectives, encouraging sustainability not only in operations but
as a mindset.
• National Maritime Spatial Plan: In 2023 Cyprus’s first National Maritime Spatial Plan was completed and implemented under the coordination of the Shipping Deputy Ministry. The Plan introduces an integrated framework for the sustainable development of marine waters and promotes coexistence of key activities such as shipping, energy, fisheries, aquaculture, tourism, and marine resource management, while safeguarding underwater cultural heritage and enhancing resilience to climate change.
• Stable Tax Framework: The Tonnage Tax System, first agreed with the European Commission in 2010 and re-approved in 2019, offers long-term stability and a competitive framework, to shipowners, charterers, and ship managers until 2030 and forms the cornerstone of Cyprus shipping structure.
• International Cooperation: Cyprus’s strong presence in international fora, exemplified by its seat on the IMO Council since 1987, provides the opportunity to actively shape global maritime policy within the frameworks of the IMO, the EU, and the ILO.
Performance of the Cyprus Registry
The Cyprus flag remains one of the top-quality sovereign registries globally. In 2023, it celebrated 60 years of operation, marking decades of growth and international recognition. Over the past two years, the registry expanded by 20% in gross tonnage, reaching its highest level in two decades, while maintaining an excellent safety record and remaining firmly on the Paris and Tokyo MoU White Lists.
The Cyprus fleet consistently ranks among the highest globally, attracting new shipowners thanks to upgraded services, safety, specialised know-how, and bilateral agreements that secure favourable treatment in foreign ports. Cyprus has signed 25 bilateral agreements, which also include provisions for the employment of seafarers under defined terms.
The Cyprus registry also offers competitive taxation, full protection for financiers and mortgagees, and income tax exemption for seafarers serving on Cyprus-flagged ships.
Equally impressive are the results of the ship management sector, which has become one of Cyprus’s strongest assets. According to the Central Bank of Cyprus, revenues from ship management services in the second half of 2024 reached €916 million, accounting for 5.3% of Cyprus’s semi-annual GDP — a 9.7% increase compared to the first half of 2024.
It’s worth mentioning that with over 9% of the global third-party ship management market based in Cyprus, the island has established itself as the world’s leading hub for ship management.
Maritime Cluster
Cyprus’s success is not limited to its registry but is also a pillar of social and political development. It creates quality jobs, supports education and training, and promotes the image of Cyprus worldwide through its ships sailing across the globe. Moreover, Cyprus has developed a modern, efficient, and comprehensive maritime cluster, bringing together ship management, shipowning, chartering, marine insurance, bunkering, telecommunications, technology, professional services, brokerage and the establishment of maritime academies.
Today, more than 250 companies employ 9,000 professionals in Cyprus, while over 55,000 seafarers serve on Cyprus-flagged vessels.
Cyprus as a Reliable and Forward-Looking Maritime Hub
Cyprus’s success in shipping rests on three core pillars: quality, reliability, and adaptability. The Cyprus maritime cluster offers an integrated ecosystem that includes ship ownership, management, insurance, finance, training, and technological solutions — all supported by a transparent legal system based on English common law and a business-friendly environment.
This combination has positioned Cyprus not only as a flag state of excellence but also as a fully integrated maritime hub, equipped to meet the evolving demands of global shipping. Its foundations are reinforced by a skilled multilingual workforce, a global network of maritime offices in major centres, and a governance framework that aligns policy with the practical needs
of the industry. At the heart of this success lies the enduring partnership between public administration and the private sector — a relationship built on mutual trust and a shared commitment to competitiveness, resilience, and sustainable growth
As we look ahead, what stands out in the shipping narrative of Cyprus is the resilience, dedication, and progress that have defined its history. From the establishment of its ship registry six decades ago, overcoming historical challenges, political tensions and external restrictions, to the creation of the Shipping Deputy Ministry in 2018, and the ambitious reforms of recent years, Cyprus has consistently demonstrated adaptability and growth.
As the international maritime community gathers in Limassol for Maritime Cyprus 2025, the message is clear: Cyprus will continue to be a reliable, innovative, and forward-looking maritime hub, ready to meet the challenges and opportunities of the future.
Dr. Stelios D. Himonas
Permanent Secretary
Shipping Deputy Ministry of the Republic of Cyprus
