Luxury Assets
Cyprus is a leading EU jurisdiction for the registration, ownership and management of yachts, ships and private aircraft. Combining robust legal frameworks, competitive tax regimes and internationally recognised registries, it attracts global owners and operators seeking efficiency and regulatory credibility.
Strategically positioned within the European Union, Cyprus has developed into a centre of excellence for maritime and aviation structuring, offering accessible registries, favourable tax provisions and a strong professional services ecosystem. These advantages make it a natural choice for internationally mobile assets requiring compliant, well‑governed solutions. Our Cyprus‑based team provides practical, technically precise guidance across ownership structuring, registration, VAT planning and ongoing compliance, ensuring your assets are established and managed with confidence and long‑term clarity.
Cyprus is a key maritime and ship‑management centre, attracting foreign ship owners through highly favourable tax provisions available to shipping companies operating from the island. The Cyprus shipping registry is recognised as one of the most accessible registries in the European Union, offering efficiency, credibility and regulatory certainty.
Over the past two decades, the Cyprus flag has not only grown significantly in size but has also focused on enhancing fleet quality and professional standards. As a result, the Cyprus flag is classified on the White Lists of both the Paris and Tokyo Memoranda of Understanding, reflecting its strong safety record and international standing.
These advantages make Cyprus an ideal jurisdiction for commercial vessels, private yachts and ship‑owning structures, supported by a mature ecosystem of professional advisers and service providers.
Key Benefits
- EU-recognised registry with a strong reputation for safety and quality
- Competitive registration and annual fees
- Efficient, owner-friendly process
- Favourable tax framework: approved VAT procedures, no income tax on officers’ or crew earnings
- Flexible Tonnage Tax system for long-term predictability
- VAT exemption for international transport services outside the EU
- No income tax on officers’ and crew earnings
- Global recognition via 28 Merchant Shipping Bilateral Agreements
Cyprus is one of the most attractive EU jurisdictions for the registration and operation of private aircraft, largely due to its appealing VAT framework for private aviation. As an EU‑aligned jurisdiction with a well‑established professional services infrastructure, Cyprus offers a compliant and efficient solution for private individuals and corporate operators.
The Cyprus Aircraft Leasing Scheme is commonly used to structure private aircraft ownership in a tax‑efficient and transparent manner. Under this arrangement, a private aircraft is leased by the owner (the Lessor) to the user (the Lessee) for a consideration, with the option for the Lessee to purchase the aircraft at a pre‑agreed price at the end of the lease term.
For the purposes of the scheme:
- The Lessor must be a company registered in Cyprus
- The Lessee may be an individual or legal entity with its primary place of residence or establishment in Cyprus
This structure is widely used by private individuals, family offices, and corporate operators seeking an EU‑based, compliant and tax‑efficient aircraft solution.
How the Scheme Works
- The aircraft is owned by a Cyprus-registered lessor company
- It is leased to a lessee with primary residence or establishment in Cyprus
- The lease agreement may include an option to purchase at a pre-agreed price
- The aircraft may remain registered in any recognised aircraft registry worldwide
Key Benefits
- VAT applied only to a percentage of lease consideration
- Pre-determined rates based on aircraft type
- No requirement for detailed flight logs for VAT purposes
- Clear, EU-aligned methodology, providing certainty and transparency
Dixcart Services
Our Dixcart Cyprus office offers a comprehensive range of services, including:
- Registration of a yacht, ship or aircraft in Cyprus – Our professionals in the Dixcart office in Cyprus are expert in registering a vessel efficiently and diligently.
- Establishment of an appropriate corporate structure – Establishing the right corporate structure is important. Dixcart Cyprus can advise on the most appropriate and tax efficient structure to protect assets.
- Importation – Dixcart can provide all of the professional services, from the preparation work in advance, to importing the vessel and assisting with customs clearance.
- Accounting and bookkeeping – Full due diligence support, to ensure all compliance requirements are met, and accounts are up to date.
- Assistance with crewing – Dixcart can draft and organise appropriate contracts and assist with payroll.
- Ongoing annual registration requirements – Dixcart can continue to assist with the ongoing registration requirements in order to maintain documentation.
- Corporate services – Dixcart Cyprus offers a comprehensive range of management and secretarial services, including directorship arrangements, if needed.
