News

Germany subsidises EU flags

12/05/2017

The German government has implemented a unique and far-reaching new scheme in support of the German flag, with a number of measures either directly or indirectly supporting vessels operating under the flag. In so doing, the German government is seeking to ensure the education of the next generation of German seafarers and conditions of employment for all.

Germany subsidises EU flags

A key point of interest in the forward-thinking policy is that all the measures, bar one, apply to the other flags used by German owners. The exception is that the direct 100% reduction of income tax for seafarers who are German tax residents applies solely to the German flag. The incentives apply to all other EU flags and include the education of German ship mechanics (€32,000 per annum), the training of nautical cadets (€16,000 per annum) and the training of technical cadets (€21,000 per annum). Additional funds are being granted for trainees and cadets by the Stiftung Deutsche Seeschifffahrt. Seafarers who are subject to the German social contribution scheme will enjoy direct funding to reduce disparities with those working under any EU flag. The scheme has been approved until 2020. It is truly a European decision.