Discover the New Nordic Flag
Where Nordic seafaring traditions meet shipping advantages
that can only be offered by the Faroe Islands.
With FAS — the Faroe Islands International Ship Register — the Faroe Islands is asserting itself as an internationally competitive flag jurisdiction.
Full refund of payroll taxes and a viable tonnage tax system are counted among the factors that make the FAS financially and operationally highly attractive from a fiscal perspective.
In addition to the competitive tax regime, the registry offers a friendly service that is ‘bureaucracy-free’ with easy access to civil servants and administrative personnel.
Furthermore, the Faroe Islands has a large pool of marine engineers and navigators. In fact many of the ship’s officers on the Danish merchant fleet are Faroese, and thousands of Faroese officers and deckhands are employed on vessels around the world.
The Faroe Islands combines the best of two worlds: Nordic traditions when it comes to shipping and societal organization including public administration, and unique Faroese flexibility and accessibility when it comes to service, all of which makes dealing with the Faroese a breeze.
In the FAS tonnage taxation scheme, each ship is taxed at the fixed rate of 18 percent of taxable revenues, with the taxable revenues calculated from the ship’s net tonnage per on-hire day, as follows:
As for the crew wage tax refund system, shipowners are refunded the full amount of the (currently 35 percent) income tax that crews working on a FAS-registered vessel pay. Under this highly cash-flow friendly arrangement, shipowners receive the tax refund already within days after payment of monthly wages.
Contact us to learn more about these and other advantages that the FAS can offer you as a shipowner.
Located along the busy shipping lanes of the Northeast Atlantic — northwest of Scotland, west of Norway, southeast of Iceland — the Faroe Islands is a self-governing part of the Kingdom of Denmark.
The Faroe Islands is an associate member of the International Maritime Organization (IMO) and the Faroese flag is included in the ‘White List’ of the Paris Memorandum of Understanding on Port State Control (Paris MoU).
The FAS was originally signed into law in 1991 to meet the requirements of domestic shipowners. Later, in 2008 and 2009, the registry was revised with the purpose of presenting it to the international market. In 2011 the FAS administration underwent the Voluntary IMO Member State Audit Scheme (VIMSAS) with a highly favorable outcome that noted only two minor nonconformities alongside a number of notes of best practices, all of which is being addressed in response to the audit.
Today about 100 merchant vessels are registered in the FAS.