Purchase and Registration of Yachts in Cyprus
A yacht is an excellent investment. By purchasing a yacht, you can enjoy a secluded holiday, discover endless views, or rent it out, increasing your capital. So, in any case, a yacht is an excellent purchase for both the soul and the wallet.
In recent years, there has been a significant increase in yachting services on the island. The demand for yachts in Cyprus has risen due to its favorable geographical location, high interest from tourists, and the low tax rate in the country. Therefore, the number of ships and bays is constantly growing.
Ways to Buy a Yacht in Cyprus
Purchasing yachts in Cyprus can be a profitable investment in your life. You increase not only your emotional and tourist experiences but also your capital. If you are interested in purchasing a yacht in the country, you have two options to choose from:
- Leasing or Renting
Buying a Yacht
Buying a yacht involves a one-time payment of the full cost of the vessel with the full transfer of ownership to the buyer. In such cases, it is recommended to have a lawyer in the company who will help draw up an agreement and document all the terms of the transaction. The action algorithm depends on who the seller is.
If you are purchasing a new boat from a broker or shipyard, carefully review the proposed contract, ensure warranty coverage is available, and check the boat for technical compliance.
When buying a used vessel, check all components and systems for proper condition, ensure that the seller is the owner of the yacht (this can be done by checking the Flag Register), and make sure that there are no tax debts on the vessel, etc.
Yacht Rental or Leasing
Purchasing yachts in Cyprus is also possible through leasing and rental. In this case, the buyer divides the cost into parts and makes payments in certain installments over a specified period. The transaction is documented by the conclusion of a rental or leasing agreement with the subsequent transfer of ownership. In this case, the buyer must have a license or certificate to operate the vessel. Leasing is based on a written agreement.
Before purchasing a boat, pay special attention to the type, size, and age of the yacht. Decide for what purpose you need it. Depending on the answers to these questions, different vessels will be suitable for you.
Advantages of registering a ship in the jurisdiction of the island
Registration of yachts in Cyprus has its advantages, in particular:
- The legislation does not distinguish between commercial and pleasure vessels. This means that the owner can use his personal vessel for commercial purposes.
- Cypriot vessels are under EU diplomatic protection.
- The country is a party to all international maritime conventions and ensures strict compliance with their provisions.
- The country has signed agreements on merchant shipping with 25 countries, according to which Cypriot ships are subject to a simplified inspection algorithm in foreign ports.
- Income received from yacht activities is not subject to tax.
- The wages of crew members and ship personnel are also not subject to tax.
- Current agreements with 50 countries on the avoidance of double taxation.
These advantages attract many boat enthusiasts who plan to use the boats for both personal and commercial purposes.
Yacht registration procedure in Cyprus
Registration of yachts in Cyprus is not a long and simple procedure. However, you need to strictly follow all stages and be attentive to bureaucratic details. According to the legislation of the country, three types of registration are possible:
- Preliminary - issued for 6 months if the ship is not in the port of the country. Subsequently, it can be extended for another 3 months.
- Permanent – issued within 9 months after the expiration of the preliminary one.
- Parallel – entry into the Cyprus register of foreign ships.
Registration of yachts in Cyprus occurs by entering the vessel into the Register of Ships. There is a separate registry for small vessels (up to 15 meters in height and engine power up to 15 knots).
The final stage of registration is obtaining an operating license. A Cypriot citizen over 17 years of age must pass an apprenticeship exam and a boating test. Tourists arriving in the country for up to 30 days have the right to operate a yacht without a license. To do this, the vessel owner must sign a declaration of competence with them.
Expenses for purchasing and operating yachts:
Purchasing yachts in Cyprus entails some mandatory expenses, in particular:
- Parking at the port
- Maintenance costs
- Crew salary
- Operating expenses
- Refueling (fuel)
In total, the cost of maintaining, servicing, and operating the yacht on the island will cost 3,000,000 euros per year.
Assistance in purchasing and registering yachts in Cyprus
The selection and purchase of yachts in Cyprus cannot be done without a qualified lawyer who will take into account all the details and guarantee that the transaction complies with legal formalities. Our agency offers the services of professional, experienced lawyers who are aware of all the intricacies of transactions for the purchase of ships. Our specialists help you conduct transactions safely, guaranteeing 100% legality and compliance with the law. The task of lawyers is to check documents and draw up purchase and sale agreements, which reduces risks and liability for the client, allowing him to experience the joy of the purchase. The range of services provided by our agency includes:
- Thorough verification of property ownership.
- Drawing up the necessary documentation for the further purchase/sale of the vessel.
- Yacht registration in Cyprus.
Owning a yacht on the island provides many advantages, such as tax benefits, low costs, and the opportunity to participate in all international conventions. Therefore, many people are thinking about purchasing such property in the country. By contacting our company, clients will forget about the hassle of purchasing and registering purchased vessels. Our specialists take care of all the issues, simplifying the process. The high professionalism of our employees helps solve a wide range of problems and find a way out of any situation.