Cyprus
Tonnage Tax
EU-approved alternative to corporate income tax for qualifying shipping activities. Calculate your estimated tax below.
Cyprus tonnage tax charges shipping companies on the net tonnage of their fleet instead of on profit. Rates run from €36.50 per 100 NT on the first 1,000 NT down to €7.30 per 100 NT above 40,001 NT, with up to a 30% discount for low-emission vessels. The regime is EU-approved and runs to 2030.
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Tonnage Tax Calculator
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As per vessel registration documents
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How Cyprus Compares
Tonnage tax rates across jurisdictions
Rates are approximate and may vary. Contact professionals for exact comparisons.
Current Rates (2026)
Annual tonnage tax rates by net tonnage tier
| Net Tonnage Range | Rate (€/100 NT/year) |
|---|---|
| 0 — 1,000 NT | €36.50 |
| 1,001 — 10,000 NT | €31.03 |
| 10,001 — 25,000 NT | €20.08 |
| 25,001 — 40,000 NT | €12.78 |
| 40,001 — ∞ NT | €7.30 |
Green Discount: Up to 30% for vessels with alternative fuels or emission reduction.
How the tiers are applied
The bands are marginal, not banded. A vessel does not fall into a single tier and pay that rate on its whole tonnage — each slice of net tonnage is charged at the rate for the band it sits in, the same way progressive income tax works. A large vessel therefore pays the top rate on its first 1,000 NT and the lowest rate only on the tonnage above 40,001 NT.
Because the rate falls as tonnage rises, the effective cost per NT drops with vessel size. That is deliberate: it is what keeps large fleets competitive against non-EU registries while the charge on smaller vessels stays modest in absolute terms.
Worked example: a 10,000 NT vessel
- 1,000 NT at €36.50 per 100 NT €365
- 9,000 NT at €31.03 per 100 NT €2,792.7
That is roughly €0.32 per NT per year, or about €9 a day. Qualify for the green discount and the same vessel pays €2,210 — a saving of €947 a year.
Illustration only, generated from the rate tiers published above. Confirm your own position with the Shipping Deputy Ministry or a Cyprus tax adviser before relying on it.
Key terms
- Net tonnage (NT)
- A dimensionless measure of a ship’s usable cargo and passenger volume, taken from its tonnage certificate. Cyprus tonnage tax is charged per 100 NT, so net tonnage — not weight, value or profit — drives the bill.
- Tonnage tax
- A tax on a ship’s carrying capacity that replaces corporation tax on qualifying shipping income. The liability is known in advance and does not move with freight rates or profitability.
- Qualifying shipping activity
- The activities the regime covers: owning, chartering and managing vessels in international maritime transport. Income outside those activities stays under the normal corporate tax rules.
- Green discount
- A reduction of up to 30% for vessels using alternative fuels or emission-reduction technology, applied to the calculated tonnage tax.
- Shipping Deputy Ministry (DMS)
- The Cyprus authority that administers the ship registry and the tonnage tax regime, and receives the annual declarations.
Benefits
Why choose Cyprus Tonnage Tax
EU Approved
Legal certainty, EU state aid compliant
Predictable Costs
Based on tonnage, not profits
Green Incentives
Up to 30% eco-friendly discount
All Vessel Types
Cargo, tankers, passengers, offshore
Long-term Certainty
Scheme extended until 2030
Simple Admin
Straightforward reporting to DMS
Who Can Apply?
Eligibility for Cyprus Tonnage Tax
Ship owners with Cyprus-flagged vessels
Ship managers (crew & technical management)
Charterers in qualifying activities
Companies with qualifying shipping income
Need Help?
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