Enacted in 2005, the Faroese Tonnage Tax System (TTS) is unique in Europe.
The system offers multiple advantages to the international ship owner. Available for vessels over 100 GT, ship owners may include their own ships, as well as charter tonnage, within the system. Operations closely linked to ship-handling may also be included.
The Faroese TTS was designed to be internationally competitive. Tonnage does not need to be registered in the Faroe Islands, nor does a vessel need to fly the Faroese flag. Most importantly, there is no tonnage ratio with regard to the number of Faroese flagged vessels.
One additional, all-important benefit: The TTS does not tax the profit on the sale of a vessel in the system to a company not in the system.