Greek shipping companies are looking into moving to Cyprus due to the instability and uncertainty in Greece, it emerged, reports Cyprus News Agency.
The director general of the Cypriot Shipping Chamber, Thomas Kazakos, said that a small number of Greek shippers have contacted Cypriot authorities for information on the procedures required and the tax system on the island.
“Bearing in mind the developments in Greece, it is a normal consequence that some ship owners will look into … having a second base in Cyprus, as apart from the national, social, and religious connection, there is also the shipping relationship we have had for years,” Kazakos said. “We provide the information and the choice is theirs.”
Besides the current uncertainty in Greece, it is reported that some shippers are even considering emigrating to Cyprus given the proposal by the country’s creditors for an increase in the rates that shipping companies are taxed in Greece.
Greek shipping companies own around 40 per cent of the Cypriot registry, but there are also Germans who chose Cyprus as a base since the 80s. Cyprus controls 4 percent of the global fleet, while Greeks control 16 percent.
He added that the shipping industry in Cyprus is not expected to be affected by any negative developments in Greece and that the island is the only open registry in the Eurozone meaning that it is not just Cypriot ship owners that are allowed to register ships.
“Cyprus’ shipping infrastructure, meaning the tax and management system that have to do with shipping, is something Greek ship owners consider an attractive, competitive, law abiding and transparent system,” he added.
Cyprus has the 10th largest merchant fleet in the world and the 3rd in the European Union with approximately 1000 ocean-going vessels of a gross tonnage exceeding 19 million, according to the Cyprus Shipping Chamber.
According to reports, both Singapore and Hong Kong have sent delegations to Greece in the past six months to attempt to woo Greek shipowners to Asia.