A bill that the Deputy Ministry of Shipping has put out for public consultation aims to modernise the institutional framework governing the Cyprus registry and enhance its competitiveness.
The draft bill, entitled 'The Merchant Shipping (Registration, Sale and Mortgage of Ships) (Amendment) Law of 2026', proposing a series of changes to the basic laws that have been in force since 1963.
According to the information note accompanying the bill, during the implementation of the existing legislation, obstacles to the registration of ships in the Cyprus registry were identified in several cases. Therefore, it was deemed necessary to partially amend the existing framework, with the changes focusing mainly on the persons entitled to register as owners of Cypriot ships, and also on acts related to ship financing.
Expanding the right to register
Particular importance is attached to the changes concerning the ownership status of ships that can fly the Cypriot flag.
The proposed framework expands, among other things, the possibility of registering ships by citizens of the United Kingdom and Switzerland, as well as other states with which the Republic of Cyprus has reciprocity or mutual recognition arrangements.
This possibility also extends to legal entities controlled by citizens or legal entities of the specific countries.
A change is also proposed for legal entities established outside the European Union or the European Economic Area. Currently, it is required to verify that they are controlled by Cypriot citizens or natural persons who are citizens of the EU or the EEA, while with the amendment, the requirement for “control” will also be satisfied when the legal entity is controlled by other legal entities.
At the same time, under certain conditions, it is proposed to extend the right of registration to financial, banking or other similar institutions that provide financing to Cypriot ships. The concept of legal entities established in Cyprus will also include Shipping Limited Liability Companies (LLCs).
EU and UN sanctions and revocation of Cypriot nationality
An important provision also concerns the implementation of economic sanctions and restrictive measures. It is proposed that the violation of economic sanctions or restrictive measures imposed by the European Union and/or the United Nations be added to the grounds for revoking the nationality of a Cypriot ship.
The same possibility will be provided when the registered owner of the ship is a natural or legal person against whom economic sanctions or restrictive measures have been imposed by the EU or the UN.
New regulations for financing and mortgages
In addition to the above, the bill also introduces regulations that are directly related to the financing of Cypriot ships.
In particular, new articles are proposed for the issuance of a certificate in cases of bareboat chartering or a lease agreement for the purposes of financing Cypriot ships, as well as for the revocation of this specific certificate.
A new provision is also added that will allow the modification of a mortgage registered on a Cypriot ship, a regulation that is part of the broader effort to modernize procedures related to shipping financing.
Changes to both temporary and parallel registration
The proposed changes also replace the relevant article of the legislation, so as to allow the temporary registration of ships located in the territorial waters of the Republic of Cyprus.
At the same time, an attempt is being made to clarify the regime of parallel registration. Specifically, a Cypriot ship registered in a foreign registry will not be able, during the validity of the parallel registration regime, to be simultaneously registered in another foreign registry.
A similar restriction is also provided for a foreign ship that is registered in parallel in the Special Parallel Registration Book of the Cyprus Register.
The changes also include the replacement of the definition of the term "ship", with the aim of removing doubts regarding the types of vessels that can be registered in the Cyprus Register, while a new reason for deleting a vessel is added in order for it to be registered in the Small Vessel Register.
The public consultation
It is noted that the Deputy Ministry of Shipping has put the draft into public consultation, with the main aim of the proposed changes to make the Cyprus registry more competitive and, at the same time, to modernize a legislative framework whose main body dates back to 1963.
Finally, it is worth mentioning that the public consultation will remain open until 9 October at 11.50pm.
(Source: InBusinessNews)
