European Commission approves maritime transport support schemes in Cyprus, Denmark, Estonia, Poland and Sweden

A file photo of the port of Bremen, northern Germany. EPA-EFE/FOCKE STRANGMANN

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The European Commission has approved under EU State aid rules five schemes to support maritime transport in Cyprus, Denmark, Estonia, Poland and Sweden. The schemes encourage ship registration in Europe and contribute to the global competitiveness of the sector without unduly distorting competition.

The Commission adopted five separate decisions, concerning

  • the introduction of a tonnage tax and seafarer scheme in Estonia,
  • the prolongation of a tonnage tax and seafarer scheme in Cyprus,
  • the introduction of a new seafarer scheme in Poland,
  • the prolongation and extension of a seafarer scheme in Denmark, and
  • the prolongation of a seafarer scheme in Sweden.

The Commission assessed the five schemes under EU State aid rules, in particular its Guidelines on State aid to maritime transport (the “Maritime Guidelines”) and established that all schemes are in line with its interpretation of the Maritime Guidelines.

As regards the tonnage tax schemes in Estonia and Cyprus, the Commission found that the schemes comply with the rules limiting tonnage taxation to eligible activities and vessels. Furthermore, as regards taxation of dividends of shareholders, the Commission found that both the Estonian and the Cypriot tonnage tax schemes ensure that shareholders in shipping companies are treated in the same way as shareholders in any other sector.

As regards the seafarer schemes in Estonia, Cyprus, Poland, Denmark and Sweden, the Commission found that all five Member States have agreed to apply the benefits of their respective scheme to all vessels flying the flag of any EU or EEA Member State.

The Commission concluded that the schemes are in line with EU State aid rules, as they will contribute to the competitiveness of the EU maritime transport sector and encourage ship registration in Europe, while at the same time preserving Europe’s high social, environmental and safety standards and ensuring a level playing field.

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