Cyprus proposes wider ship register access and updated sanctions rules
A draft law would expand eligibility for the Cyprus ship register, revise ownership and finance rules, and strengthen sanctions provisions.
Nicosia, Cyprus. Cyprus is proposing an overhaul of the legal framework governing eligibility for its ship register, widening access to the Cyprus flag while updating sanctions, ship-finance and registration provisions. The Shipping Deputy Ministry has opened a draft law for consultation.
Ownership eligibility
The ministry said the current system, whose legislative foundations date back to 1963, has created practical difficulties and obstacles in some cases for vessels seeking registration.
Under existing legislation, more than 50 per cent of a vessel must generally be owned by Cypriot citizens or citizens of another EU member state, subject to conditions set out in the law.
The draft law would extend eligibility to British and Swiss citizens, as well as nationals of other countries with which Cyprus has reciprocity or mutual-recognition arrangements.
Legal entities controlled by citizens or companies from those countries would also be eligible, expanding the pool of international owners able to register vessels under the Cyprus flag.
Rules for non-EU companies
The proposed changes are particularly relevant to the United Kingdom, a major global shipping and ship-finance centre, as British citizens no longer fall under EU ownership provisions following Brexit.
The legislation would also amend rules for companies incorporated outside the EU or European Economic Area. Currently, qualifying companies must meet control requirements involving Cypriot, EU or EEA nationals.
Under the draft, control could also be exercised through other legal entities rather than being traced solely to individual shareholders.
Financing and registration provisions
Subject to conditions, banks, financial institutions and similar lenders financing Cyprus-registered vessels would be able to qualify for registration rights.
The draft also includes updates to rules on mortgages, financing, provisional registration and parallel registration, alongside tighter sanctions provisions.
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