The Faroese Tonnage Tax System was designed to be internationally competitive.

 

In order to enter the tonnage tax system, a vessel must fly the Faroese flag and a Faroese limited company must be established.

 

Only Faroese companies may use the Tonnage Tax System. However, there are no restrictions regarding the ownership of a Faroese company.

 

Tonnage Tax Costs

Net Tonnage:              Amount:

0 – 1,000:                    DKK 6 per day per 100 NT

1,000 – 10,000:           DKK 4 per day per 100 NT

10,000 – 25,000:         DKK 3 per day per 100 NT

25,001 and more:        DKK 1 per day per 100 NT