Cyprus’ commercial fleet has grown by an impressive 14 per cent over the last year, while the shipping industry now accounts for 7 per cent of gross domestic product, MPs heard on Monday.

Deputy Minister for Shipping Marina Hadjimanoli was speaking in parliament during a review of her ministry’s budget for 2025.

She said the 14 per cent rise in the number of ships registered in Cyprus happened despite the sanctions imposed on Russia over its invasion of Ukraine, and despite the Turkish embargo and the conflict in the Middle East.

For 2025, the ministry intends to spend €1 million on actions promoting the island as a shipping centre.
In addition to the growing fleet, said Hadjimanoli, there has been an uptick in the number of shipping companies operating in Cyprus and paying taxes.

It has also had a positive knock-on effect on other sectors, such as fuel provision services, tech, software deployment, as well as legal and accounting services.

Right now, the minister stated, shipping-related activities account for about seven per cent of GDP.
Asked how many multinational shipping companies currently operate in Cyprus, the deputy minister said only one.

The question was put to her in the context of an upcoming bill that will raise corporate tax on multinationals to 15 per cent. This is to bring Cyprus in line with a relevant EU directive for a 15 per cent corporate tax on such companies with a turnover of at least €750 million.

Hadjimanoli also said that as of September 2025 the island will start buying greenhouse gas emissions allowances for shipping.

Meantime the government has rolled out a new series of ‘green incentives’ for ships that significantly cut back on carbon emissions.

The number of applications for this scheme has jumped to 60 from 20 last year.

On the ferry route between Cyprus and Greece, the deputy minister said the contract has been renewed for three more years.