Financial matters

• Is the tonnage tax restricted to ships under the German flag?

No, flying the German flag is no prerequisite for the application of the tonnage tax; tonnage tax may be used regardless of flag. It is however important that the ship’s operation is managed from German territory, in particular with regard to technical and to commercial aspects.

• Which subsidies will I get, if I operate a ship under the German flag?

There are various kinds of financial support for German-flagged ships:

1. Subsidies for reducing ancillary labour costs
The federal government reimburses the shipowner upon application the complete paid employers' contributions to the social security.

2. Subsidies for training slots
For the creation of training slots, e.g. for ship mechanics, the federal government pays up to 24.000 € as subsidies to the shipowner/employer.

3. Wage tax deduction
The shipowner is entitled to retain 100% of the wage tax due for seafarers on German flagged ships.

4. Financial support by the training foundation
The foundation "Stiftung Schifffahrtsstandort Deutschland" grants financial support for training of junior seafarers. For junior officers up to 32.000 € may be paid annually.

Please click here for further information on financial support for the German flag.