Importing a car to Cyprus involves navigating a combination of EU customs law, Cypriot national procedures, and post-registration requirements set by the Department of Road Transport. Whether you are relocating to Cyprus, purchasing a vehicle from abroad, or shipping a car from the United Kingdom after Brexit, understanding the process in advance can save you significant time and money.
Disclaimer: Customs regulations, duty rates, and administrative procedures are subject to change. The information in this guide reflects the rules in force as published by the Cyprus Customs & Excise Department and the Cyprus Customs Tariff system. Always verify current rates and requirements before shipping your vehicle, or contact our team for up-to-date professional advice.
Cyprus is a member of the European Union and applies the EU's Common Customs Tariff (CCT) and the Union Customs Code (UCC) to all goods imported from non-EU countries. This means that vehicles imported from third countries — including the United Kingdom, the United States, Japan, the UAE, and China — are subject to import duty and VAT before they can be registered and driven on Cypriot roads.
1. Who Can Import a Vehicle into Cyprus
Any individual or legal entity may import a motor vehicle into Cyprus. However, the applicable duties, taxes, and procedures differ depending on the importer's circumstances.
Private individuals importing a vehicle for personal use are subject to the standard import duty and VAT regime, unless they qualify for a specific relief — most notably Transfer of Residence (TOR) relief, which is explained in the following section.
Businesses and traders importing vehicles for commercial purposes — whether for resale, fleet use, or operational purposes — must be registered with the Cyprus Tax Department and hold a valid VAT registration number. VAT-registered businesses may be entitled to reclaim import VAT, subject to the conditions of the Cyprus VAT Law.
Diplomats and international organisations may be eligible for duty and VAT exemptions under specific international conventions and bilateral agreements. These cases are handled directly by the Cyprus Customs & Excise Department Headquarters in Nicosia.
Before shipping any vehicle, importers are strongly advised to contact the Department of Road Transport to confirm that the specific vehicle can be registered in Cyprus. Certain vehicles — particularly those manufactured to non-EU safety or emissions standards — may face restrictions on registration and road use, regardless of whether customs clearance is completed.
2. Transfer of Residence (TOR) Relief
Transfer of Residence (TOR) relief is the most significant duty exemption available to private individuals importing a vehicle into Cyprus. It allows a person transferring their normal residence from a third country to Cyprus to import their personal property — including a private motor vehicle — free of import duty and VAT.
Eligibility Conditions
To qualify for TOR relief on a motor vehicle, the applicant must satisfy the following conditions, as set out in the Cyprus Customs and Excise Duties (Reliefs on Import of Goods) Regulations and the EU Council Regulation 1186/2009:
- The applicant must have been residing outside the EU for a continuous period of at least 12 months prior to the transfer.
- The vehicle must have been owned and used by the applicant in the third country for a minimum of six months before the date of transfer.
- The vehicle must be intended for personal use only and must not be sold, hired out, or lent to a third party for a period of 12 months following the date of importation under relief.
Application Procedure
The applicant must submit Application Form Απ. 2 to any Customs District Office in Cyprus. This application should ideally be submitted before the vehicle arrives, although Cyprus Customs permits the vehicle to be driven temporarily under Form C.104O for a period of one month while the application is being processed.
If the application is refused — for example, because the applicant does not meet the residency or ownership criteria — the importer must either pay the applicable import duty and VAT, place the vehicle in a customs warehouse, transfer it to another EU member state, or re-export it to a third country.
For assistance with the TOR application process, our team offers personal effects clearance services in Cyprus covering TOR applications and vehicle importation.
3. Vehicle Import Duties
For vehicles that do not qualify for TOR relief or any other exemption, import duty is payable at the rates set by the EU's Common Customs Tariff, as published in the TARIC database.
Standard Duty Rates
| Vehicle Type | HS Chapter | Standard Duty Rate |
|---|---|---|
| Passenger cars (new or used) | 8703 | 10% |
| Commercial vehicles (light) | 8704 | 10%–22% (varies by weight) |
| Motorcycles (up to 250cc) | 8711 | 8% |
| Motorcycles (over 250cc) | 8711 | 6% |
| Electric vehicles (passenger) | 8703.80 | 10% |
Duty Calculation Example
Import duty is calculated on the customs value of the vehicle, which is defined under Article 70 of the EU Union Customs Code as the CIF value — that is, the cost of the vehicle plus the cost of insurance and freight to the first point of entry into the EU.
| Item | Amount |
|---|---|
| Purchase price | €15,000 |
| Freight (shipping) | €1,200 |
| Insurance | €150 |
| Customs value (CIF) | €16,350 |
| Import duty (10%) | €1,635 |
| VAT base (customs value + duty) | €17,985 |
| VAT (19%) | €3,417 |
| Total taxes payable | €5,052 |
4. VAT on Vehicle Imports
All motor vehicles imported into Cyprus from third countries are subject to Value Added Tax (VAT) at the standard rate of 19%, as prescribed by the Cyprus VAT Law (Law 95(I)/2000) and the EU VAT Directive (2006/112/EC).
VAT on imports is calculated not on the purchase price alone, but on the taxable value, which is the sum of the customs value (CIF) and the import duty already calculated. This means VAT is effectively charged on top of the duty, as shown in the worked example above.
VAT-registered businesses importing vehicles for business purposes may be entitled to reclaim the import VAT as input tax, subject to the conditions of the Cyprus VAT Law. Private individuals cannot reclaim import VAT.
It is important to note that as of 22 March 2019, excise duties on motor vehicles were abolished in Cyprus by Law No. 39(I)/2019. Only import duty and VAT are now payable.
5. Required Documents
The following documents must be presented to Cyprus Customs at the time of clearance. Failure to produce any of these documents will delay the release of the vehicle.
For all imported vehicles (new and used):
- Completed AIS Declaration — the electronic customs declaration submitted through the Cyprus Customs Automated Import System
- The purchase invoice showing the purchase price, seller's details, and vehicle description (make, model, year, VIN/chassis number, engine capacity)
- The bill of lading (sea freight) or air waybill (air freight)
- Proof of freight and insurance costs to establish the full CIF customs value
For used vehicles specifically: The original registration certificate from the country of export, confirming the vehicle's registration history, ownership, and technical specifications.
For new vehicles: An EC Certificate of Conformity (CoC), confirming that the vehicle meets EU type-approval standards. Without a CoC, the Department of Road Transport may refuse to register the vehicle.
For TOR relief applications: Application Form Απ. 2, proof of residence abroad for at least 12 months, and proof of vehicle ownership and use for at least six months prior to transfer.
6. Step-by-Step Customs Clearance Process
The following steps describe the standard procedure for importing a vehicle through Limassol Port, which handles the majority of vehicle imports into Cyprus.
- Pre-arrival preparation. Before the vessel departs, engage a licensed customs clearing agent in Cyprus. The agent will advise on the correct HS classification, prepare the customs declaration, and coordinate with the shipping line.
- Arrival at Limassol Port. When the vessel arrives, the vehicle will be discharged and held in the port's bonded area pending customs clearance.
- Submission of the AIS Declaration. The customs clearing agent submits the declaration electronically through the Cyprus Customs Automated Import System (AIS), together with all supporting documents.
- Documentary and physical examination. Cyprus Customs will conduct a documentary check. A proportion of shipments are selected for physical examination.
- Payment of import duty and VAT. Once the declaration is accepted, the Customs office issues a duty assessment. Import duty and VAT must be paid before the vehicle is released.
- Release and collection. Upon payment, the Customs office issues a release order. Port storage charges apply from the date of discharge, so prompt clearance is advisable.
- Registration with the Department of Road Transport. After customs clearance, the vehicle must be registered before it can be driven on public roads.
For professional assistance with customs clearance in Cyprus, P.Panagi & Sons Ltd handles all stages of the process, from pre-arrival documentation to port collection.
7. Importing from the UK After Brexit
Since 1 January 2021, the United Kingdom is no longer a member of the European Union. Vehicles imported from the UK to Cyprus are treated as imports from a third country and are subject to import duty and VAT in the same way as vehicles from any other non-EU country.
The EU-UK Trade and Cooperation Agreement (TCA)
However, the EU-UK Trade and Cooperation Agreement provides for zero import duty on goods originating in the UK, provided that the goods comply with the Agreement's rules of origin. To claim the preferential zero-duty rate, the importer must present a statement on origin drawn up by the UK exporter or manufacturer.
Critically: If a vehicle was manufactured in a third country (for example, a Japanese-brand car assembled in Japan but sold through a UK dealer) and does not meet the TCA rules of origin, the standard 10% duty rate applies, regardless of the fact that it was purchased in the UK.
8. Common Mistakes When Importing a Car to Cyprus
- Undervaluing the vehicle. Cyprus Customs has the authority to challenge the declared customs value if it appears inconsistent with market prices. Deliberately undervaluing a vehicle is a customs offence.
- Failing to check registration eligibility before shipping. A vehicle that passes customs clearance may still be refused registration if it does not meet Cypriot or EU type-approval requirements.
- Assuming a UK-purchased car qualifies for zero duty. Many popular models sold in the UK are manufactured outside the UK and do not qualify for zero duty under the TCA.
- Submitting an incomplete AIS Declaration. Missing documents will result in the declaration being held pending additional information, incurring port storage charges.
- Attempting to self-clear without a licensed agent. The complexity of the AIS Declaration, the HS classification system, and the documentary requirements make professional representation strongly advisable.