Importing a Car to Cyprus

Importing a Car to Cyprus

We now live in a world of great development where you can easily travel to another country, either for vacation or to move permanently, and transfer your personal belongings with you. The importation of cars in Cyprus has become a common practice as many people decide to move to the island, either for business purposes or simply because the climate is warmer than in their hometown!

The most popular country from which people import cars to Cyprus is the United Kingdom. In general terms, it is very easy to transport vehicles within member states of the European Union due to the unification of the market. Furthermore these days, you can transfer vehicles to Cyprus from all around the world relatively easily. The ease of the importation process from all around the world is highlighted by the fact that the second most popular country from which people import cars to Cyprus is Japan.

You can always rely on a local car import agency to take care of all the bureaucracy and procedures necessary to get things done properly. However, it would be beneficial for you to be aware of how the system works and how the taxes are calculated so you can have a clear idea of what to expect throughout, or even do it yourself as many also choose to do.

Make the Decision to Import

There are many car transport agencies established in Cyprus, which are more than happy to assist you to transfer your private vehicle safe and sound from any corner of the planet. Even if you wish to purchase a new car, these agencies are here to assist you to select the car you want and arrange all the details of the transfer process and the necessary documentation.

They usually work with one or more car traders to find whichever car you wish to purchase. If you prefer, you can search for the car you would like to purchase yourself and then hire a shipping agency to find it for you and transfer it to Cyprus.

Here is a list of the most popular car import Agencies in Cyprus:

• AutoShippers
• Auto Cy Imports
• Peter Morton Removals
• Car Exporters
• Algys Autos (Cyprus) Ltd
• Shoham
• Respect Motors
• Andrews Shipping

For imports from a European Union member state, you are required to present very little documentation in the pre-shipment stage, which is the vehicle registration document (the V5 or Log Book). You will not be required to show additional documents at this stage. What you need to be concerned with is the timing of your arrival in Cyprus and the arrival of your vehicle to coincide, if you would like to have your car ready to pick up as soon as you land in Cyprus.

You will need to discuss with the agency the amount of time needed for the procedure to be completed. On an average scale, the procedure usually takes around 14 to 20 days. The prices range around £550 + VAT for hatchback or saloon and around £700 + VAT for an SUV when importing the vehicle from London or Southampton to Limassol port. Have in mind that you may need to pay additional fees at the port on the arrival of your vehicle.

Taxes and VAT

One major element in the import process is the taxes which are due. In general terms, people who wish to import a vehicle in Cyprus are required to pay the relevant excise duties and VAT. However, you have the possibility to apply for Relief; this means that you will be partially or totally exempted from paying excise duty for your vehicle if certain circumstances are met.

1. Community/Union Status

It has been announced recently in the official newspaper of the Republic of Cyprus that goods which were made in any country of the European Union or have been imported from elsewhere but were cleared from the relevant taxes are placed in free circulation. This means that the goods are not subjected to further excise duties and VAT. Such goods obtain the ‘Union’ status. Similarly, Article 28 of the Treaty on the Functioning of the European Union (TFEU) stipulates free movement of Union goods throughout the EU.

You are required to prove that your vehicle has Union status by producing either a T2L or T2LF document for a brand new or a used vehicle, or the number plates and the vehicle registration document issued by the previous Member State for used vehicles. You can find the verification form for Union status here: Further Information

2. Transfer of Normal Residence

Another way to be exempt from import duty and VAT is to transfer your Normal Residence to Cyprus. The law defines ‘normal residence’ as the place you live for more than 185 days per year. Transferring your normal residence allows you to bring along your personal property, which includes your car, without paying any additional taxes.

To proceed, you are required to declare your vehicle to the nearest Customs Station within 24 hours from the date of arrival. If this day is a bank holiday or on the weekend, then you can declare it on the next working day. The application can be submitted to any Customs Office or Headquarters.

You can find more details on the legal provisions of transferring your normal residence here: Further Information

While you are waiting for Customs to review your application for Relief, you can drive your car temporarily after submitting form C.1040. You are required to keep this form in your car at all times and produce it if so requested by a Police Officer or by a Custom.

If the response from Customs is positive, you must complete a SAD form and submit it to any Regional Customs Office, along with form C.1040. Then, Customs will issue form C72A, which you must produce, along with your vehicle and all the registration-related documents, to the Inland Transport Department for inspection and registration purposes.

If you receive a negative response, then you have the following options:

• Pay the excise duty and VAT;
• Place the vehicle in a Customs warehouse;
• Send it to another EU member state;
• Export it to a country outside the EU.

3. Families with 4 or more Dependent Children

You are entitled to relief from paying excise duty for your imported vehicle when you have four or more dependent children and you have not received any subsidy from the State for the purchase of the vehicle.

Relief is granted for one vehicle of the family only and must always be driven by the entitled person. The vehicle in question must be a new or a used passenger motor vehicle, which can transport from 11 to 12 persons including the driver. Instead of claiming relief, however, you can apply to the Ministry of Finance for a special subsidy for the purchase of the vehicle.

The law defines children as dependent when they are:

• Below the age of 18;
• Over 18 years old and students of secondary or tertiary education in Cyprus or abroad;
• Over 18 years old and they are in the National Army doing their service;
• Of any age and unmarried and invalid, who have not exercised their right to apply for a duty-free vehicle or have not been given financial assistance by the State to purchase a vehicle.

Of any age and unmarried and invalid, who have not exercised their right to apply for a duty-free vehicle or have not been given financial assistance by the State to purchase a vehicle.

4. Temporary Use of Vehicles

Another condition which allows you not to pay excise duty or VAT when you import a vehicle from another EU member state is the intention to use it for a temporary period, not exceeding 6 months per year, consecutive or not. In such a case, you must declare using form C.1040 at the airport on Customs on arrival of your vehicle. To be granted relief for temporary use, the following prerequisites must be met:

• The car must be registered in another member state and bear the number plates;
• You are the owner or have the owner’s written authority;
• Your normal residence is in another member state;
• You are bringing the vehicle for your private use only;
• You intend to use it during your stay in Cyprus for less than 6 months per year.

There are several exceptions to the ‘temporary use’ rule which allows a person to use their car temporarily for a period longer than 6 months. This exception applies if:

• You are a student in Cyprus, to use the car throughout your stay exclusively for your studies;
• You are assigned with a task of fixed duration, to use it until the task is complete;
• You have transferred your normal residence from another member state to Cyprus, you may use it for 1 month when you apply for Relief.

The task mentioned above refers to an employment contract with a governmental organisation. You can learn more about the specific categories of employment here: Further Information

Pay the Excise Duty and VAT

If you do not fall within any of the categories mentioned earlier to be entitled to Relief or in case you are transferring a vehicle from a country outside the EU, then you must pay the relevant import duty and VAT. To be paid a SAD form must be submitted along with evidence required for the calculation of the vehicle’s customs value, i.e. the purchase price plus freight charges and insurance (if any) up to the port or airport of entry into Cyprus, to be presented to Customs.

You can contact the Department of Customs if you need clarifications on the process or the tax calculations:

The Director
Department of Customs and Excise
Corner M.Karaoli and Gr. Afxentiou, Nicosia
Postal address:
Director of Customs,
Customs Headquarters,
1440, Nicosia
Fax no: 22302031
Email: headquarters@customs.mof.gov.cy
Relief Section at Customs Headquarters: 22601657 and 22601658

Calculation of Taxes and Customs Union

The import duty rates range depending on the category of the vehicle, its weight and its engine capacity. The standard import duty rate for passenger cars is 10%. The rate for commercial type motor vehicles varies between 10% and 22%. For motorcycles with an engine capacity up to 250cc, the import rate is 6%. The VAT on motor vehicles is applied at the rate of 19% on the vehicle’s customs value which includes the purchase price, the transportation (freight) cost, the insurance and the import duty.

For a used vehicle, you must present to Customs the original registration certificate for it from the country of importation, along with the aforementioned documents. For used passenger cars (not including double cabin cars) you must present a certificate issued by the Department of Road Transport, verifying the mass of carbon dioxide (CO2) emissions of the vehicle (Doc TOM119A). For new vehicles, you must present an EC Certificate of Conformity.

After you have paid the necessary duties and VAT, you must register your vehicle to be licenced for road tax purposes. There are several restrictions imposed by the Department of Road Transport for vehicles imported from a country outside the EU. Concerning the registration and circulation of motor vehicles, importers are advised to contact the Department of Road Transport, before the importation:

Email: roadtransport@rtd.mcw.gov.cy
Website: Further Information

If, for whatever reason, you are not willing to pay the excise duty for the import of your vehicle, here is a list of your alternative options:

• Place it in a customs warehouse;
• Import it in Cyprus on a temporary basis (this applies only to visitors, not permanent residents);
• Transport it to another EU member state;
• or Export it to a third country.

There is no need to worry about importing your favourite vehicle to Cyprus. You can rest assured that the Import agencies will do their best to assist you to select the car you want to purchase or transfer your own car to the island with safety and ease. You will only need to decide the method and date of your transfer and let the rest be taken care of on your behalf. The overall price of the import will be laid out to you before the procedure begins.

On the other hand, if you are up for doing it yourself, it need not be such a challenge to take care of the procedure. The main task would be to source a good clearing agent to deal with the bureaucracy. Hopefully, you will find all the details you need in this article to get going. In order to see whether you are eligible to be exempted from paying excise duty and VAT, you will need to check the relevant regulations and submit the appropriate claims. Transferring your car to Cyprus is only one click away.

Written October 2019