Tax relief is the customs regime whereby goods are placed in free circulation and home use with partial or total relief from excise duties, notwithstanding their tariff classification, provided they are transferred in Cyprus under certain conditions and for specific purposes. A legal provision specifying a relief is a prerequisite for granting it.

Reliefs are granted for a number of goods for various reasons. This part refers only to reliefs on private motor vehicles which are of interest to the public when brought from European Union (EU) member states.

Goods in free circulation in the EU move from one member state to another without payment of further Customs import duty. To be exempt from paying further import duty in Cyprus, proof of Community status of the goods must be provided. If you are transferring to Cyprus a vehicle for private use from another member state, you may prove its Community status by producing:

  • The T2L or Τ2LF document can be obtained from the previous member state Customs Service or through your vehicle supplier or the shipper 
  • In case of failure to provide above mentioned proof of vehicle’s Community status, the importation will be classed as having arrived from a third country and the vehicle will be liable to import duty in addition to the excise duty and VAT.

for a brand brand new or used vehicle, T2L or Τ2LF document; or
for used vehicles, the number plates and the vehicle registration document issued by previous member state.

If you are resident in another member state of the EU and you have decided to transfer your normal residence to Cyprus, under certain conditions you are entitled to transfer your personal property without having to pay excise duty and VAT. You will find all the information in the Guide to Customs Procedures titled “Transfer of normal residence”.

If part of your personal property is a motor vehicle, you are required to declare it to the nearest Customs Station within 24 hours from the date of its arrival. If a public holiday or weekend follows the date of arrival, you must make the declaration on the first working day after the expiration of the 24 hours deadline.

In order not to be deprived of your vehicle until you make an application for relief and receive an answer, you may be allowed to drive the vehicle temporarily under Form C.104O. A copy of Form C.104O will be given to you by Customs and you must keep it in the vehicle all the time and produce it to a Customs or Police Officer if so requested.

You may submit your application for relief to any Customs Office or to Customs Headquarters. If you get a positive answer, the procedure is not terminated there. You will have to complete form SAD. If you cannot complete it on your own, you may use the services of a clearing agent. You may submit your SAD at any Regional Customs Office, accompanied by Form C.104O, which will be kept by Customs. You will not pay excise duty or VAT.

Customs will issue Form C72A and a copy will be given to you. The vehicle must be then produced, together with Form C72A and other documents relating to your vehicle, to the Inland Transport Department for inspection and registration purposes.

If you get a negative answer from Customs because you do not meet the criteria for being granted a relief for the vehicle, you have the following options:

  • to pay the excise duty and VAT (if the latter is payable);
  • to place it in a customs warehouse;
  • to send it to another member state of the EU; or
  • to export it to a third country.

For more information on payment of excise duty and VAT, please visit relevant page.

Relief on motor vehicle has been abolished according to Decree no. 529/2011, which was published in the OJ of the Republic of Cyprus no. 4538 on 23/12/2011.

Persons concerned may claim relief for their personal motor vehicle within the “Transfer of normal residence scheme” (see paragraph 3).

Relief on motor vehicle has been abolished according to Decree no. 529/2011, which was published in the OJ of the Republic of Cyprus no. 4538 on 23/12/2011.

Persons concerned may claim relief for their personal motor vehicle within the “Transfer of normal residence scheme” (see paragraph 3).

Sub-section 14 of item P of the Schedule to the Customs and Excise Duties (Reliefs on Import of Goods) Regulations of 2004, P.I.380/2004.

Under the conditions laid down below, you are entitled to relief from excise duty if you are a citizen of the Republic with four or more dependant children and you have not received any subsidy from the State for the purchase of vehicle.

A child is considered dependent if that child is:

  • below the age of 18;
  • over 18 years old and is a student of secondary or tertiary education in Cyprus or abroad;
  • over 18 years old and is in the National Guard doing his service;
  • of any age and unmarried and invalid and who has not exercised his/her right to apply for a duty-free vehicle or has not been given financial assistance by the State to purchase a vehicle.

You are entitled to apply for relief from excise duty on new or used passenger motor vehicles, which can transport from eleven to twelve persons including the driver. Instead of claiming relief however, you may apply to the Ministry of Finance for a special subsidy for the purchase of motor vehicle.

Relief is granted for one vehicle only, to be driven solely by the entitled person. The replacement of one excise free vehicle with another excise free vehicle is not allowed.

Relief is granted on a claim for relief made by you personally (there is no specific form). The claim must be submitted to the Relief Section of Customs Headquarters in Nicosia and be accompanied by the following evidence:

  • marriage certificate;
  • your children’s birth certificates;
  • documentary evidence for dependant children over 18 years old;
  • “Association of Families of over three children” membership card;
  • Cypriot driving licence.

If you get a positive answer, the procedure is not terminated there. You will have to complete form SAD. If you cannot complete it on your own, you may use the services of a clearing agent. You may produce your SAD at any Regional Customs Office. Customs will issue Form C72A and a copy will be give to you. The vehicle must be then produced, together with Form C72A and other documents relating to your vehicle, to the Inland Transport Department for inspection and registration purposes.

You shall not sell, lend, pledge, rent, export, transfer or dispose off it otherwise without the prior approval of the Director of Customs.

Any infringement of the aforesaid conditions constitutes an unlawful act and carries severe penalties.

For more information, you may write to the following address:

The Director,
Department of Customs and Excise
Corner M. Karaoli and Gr. Afxentiou, Nicosia
The postal address is: 
Director of Customs, 
Customs Headquarters, 
1440, Nicosia.
Fax no 22302031 
E-mail; headquarters@customs.mof.gov.cy

For oral inquiries you may call any of the following telephone numbers of the Relief Section at Customs Headquarters: 22601657 and 22601658.

As from 9th September 2013 the Excise Duties Law 91(I)/2004 is amended in respect of the excise duties charged on motor vehicles for the transport of persons of TH 870321 - 870390 as well as on car derived vans of TH 8704.

It should be noted that for such motor vehicles that up to the 9.9.2013 were already transferred or imported in Cyprus but have not yet been released for free circulation and/or consumption, or were delivered with relief from excise duty under any law, or the excise duty was refunded, or were delivered free of excise duty for temporary use, the amount of excise duty will be charged on the lower amount calculated according to the previous Law 91(I)/2004 up to (No. 3) of 2013 or the new amending law (No. 4) no. 110(I)/2013.

The same treatment shall enjoy motor vehicles that have been shipped on a vessel destined for any legitimate port of Cyprus, up to the 9th September 2013.

Goods in free circulation in the EU move from one member state to another without payment of further customs import duty. To be exempted from paying further import duty in Cyprus, proof of Community status of the goods must be provided. If you are transferring a car to Cyprus for private use from another member state, you may prove its Community status by producing:

  • T2L or Τ2LF document; or 
  • the number plates and the vehicle registration document issued by the previous member state.

The T2L or Τ2LF document can be obtained from the previous member state Customs Service or through your vehicle supplier or shipper.

In case of failure to provide the abovementioned proof of the vehicle’s Community status, the importation will be classed as having arrived from a third country and the vehicle will be liable to import duty in addition to the excise duty and VAT. 

Certain goods are subject to excise duties, even if they arrive from another member state of the EU. Motor vehicles, in the following categories, are subject to excise duties in accordance to national legislation, and in particular, ANNEX 4 to the Excise Duties Law No.91(I)/2004:

  • saloon type vehicles, such as sedan, cabrio, estate, hatchback, coupe, etc; 
  • Jeep-type off-road vehicles (4Χ4); 
  • double cabin cars; 
  • vans of tariff heading 87.04 having a gross weight not exceeding 2032 kg and a net cargo volume not exceeding 2 cubic meters; 
  • motorcycles having an engine of a cubic capacity exceeding 600 cc.

Vehicles in the following categories are subject to 15% ad valorem excise duty:

  • “go kart” type motor vehicles, used only in closed and/or confined spaces, for entertainment purposes.
  • amphibious motor vehicles, with a gross weight not exceeding 1000 kg, with three rows of wheels and all-wheel-drive, which are used for recreational or commercial purposes and which can carry two to four persons.
  • "hovercraft" type motor vehicles that are designed to run both on water and soil.
  • Mobile campers of CN 8703
  • Old vehicles as defined in the Motor Vehicle and Traffic Law of 1972 as amended; and
  • 4-wheel vehicles, which have the appearance of a motorcycle and cannot be not registered for circulation on public roads.

Vehicles not included in the above categories, such as trucks (pick-ups), buses, vehicles carrying more than nine persons including the driver, vans other than the above, passenger vehicles powered by an electric motor, etc., are not subject to excise duty.

If you bring such a vehicle, which is in free circulation, from another member state of the EU, you may leave the port or airport immediately without any customs procedure. If your vehicle is brought in by ship, you are required to furnish proof of Community status before you are allowed to remove the vehicle from the port. To do so you must fill in the form "Application for verification of community status". 

If you are bringing a vehicle to Cyprus, which is subject to excise duty, upon receipt of your vehicle from the port or airport, you must pay the excise duty due within 10 working days from the date of the verification of the vehicle’s community status, unless within this period you opt to:

  • place it in a customs warehouse; 
  • send it to another member state of the EU; or 
  • export it to a third country.

In order to pay the excise duty, you will have to complete the SAD form. If you cannot complete it on your own, you may use the services of a customs clearing agent.

VAT is applicable only for New Means Of Transport (NMOT), transported to the Republic of Cyprus from other EU member states. For V.A.T. purposes a NMOT is a goods or passenger vehicle that meets either one of the two following criteria:

  • it is a motor vehicle or motorcycle (other than a tractor) supplied six months or less after the date of its first entry into service, or 
  • it is a motor vehicle or motorcycle (other than a tractor) that has travelled 6,000 kilometres or less.

If the vehicle meets either of these criteria, it is treated as a new means of transport for V.A.T. purposes and V.A.T. is chargeable. V.A.T. at a rate of 19% is calculated on the purchase price plus the relevant excise duty payable. On the other hand, in order to treat a vehicle as used, for V.A.T. purposes, the vehicle must be acquired more than 6 months after the date of its first entry into service and at the time of its acquisition it must have traveled more than 6,000 kilometers.

After the payment of relevant taxes the vehicle must be registered before it can be licensed for road tax purposes. For registration and circulation fees you are advised to contact with the Road Transport Department, as the competent authority, at the following address: roadtransport@rtd.mcw.gov.cy.

For more information, you may write to the Director of the Department of Customs and Excise, at the following address:

Customs Headquarters, 
1440, Nicosia.
Fax no: 22302031 
E-mail: headquarters@customs.mof.gov.cy

For oral inquiries you may call any of the following telephone numbers of the Valuation section at Customs Headquarters: 22601746, 22601748 or 22601650.

If you are bringing your motor vehicle from another member state of the European Union (EU) in order to use it temporarily in the Republic of Cyprus for a period of time not exceeding six months per year, you are not required to pay any excise duty or VAT. In such a case it is a prerequisite that the car must have been acquired under the general conditions of taxation applicable in the internal market of the member state of the EU where it is transferred from and no relief has been granted on or refund made of any excise duty or VAT as a result of the exit of the vehicle. Α vehicle is considered to have been acquired under the general conditions of taxation if it bears number plates and certificate of registration of the normal registration series of the other member state.

You are entitled to bring a private motor vehicle in Cyprus without having to pay excise duty or VAT under the following conditions:

  • you are the owner or you have the written authority of the owner;
  • your normal residence is in another member state;
  • you are bringing it for your private use only;
  • you intend to use it during your stay in Cyprus for a period of time not exceeding six months, consecutive or not, per year.

“Normal residence” means the place where a person usually lives, that is for at least 185 days, consecutive or not, in each calendar year, because of personal and occupational ties, or, in the case of a person with no occupational ties because of personal ties which show close links between that person and the place where he is living.

Certain goods are subject to excise duty, even if they arrive from another member state of the EU. Motor vehicles subject to excise duties are found in the following categories:

  • saloon type vehicles, such as sedan, cabrio, estate, hatchback, coupe, etc;
  • Jeep-type off-road vehicles (4X4);
  • double cabin cars;
  • vans of tariff heading 87.04 having a gross weight nt exceeding 2032 Kg and a net cargo space not exceeding 2 m3
  • motor cycles having an engine of a cubic capacity exceeding 600 cc.

If you are bringing a vehicle from another member state of the EU and provided that you fulfill the above mentioned prerequisites then you may leave the port or airport immediately after you declare the vehicle on customs form C.104Ο, a copy of which will be given to you by Customs. The maximum period of stay of the vehicle for private use in the Republic is six months, consecutive or not, per year.

Exceptionally you may be allowed to use the vehicle temporarily for a period of time longer than six months, if:

  • you are a student in Cyprus, in which case you will be allowed to use the vehicle throughout your stay in Cyprus exclusively for your studies; or
  • you are assigned with a task of fixed duration, in which case you will be allowed to use the vehicle throughout your stay in Cyprus exclusively for the accomplishment of your task; or
  • you have transferred your normal residence from another country to Cyprus and you intend to apply for relief on the vehicle. In such a case, so that you may not be deprived of your vehicle until you make an application and receive an answer, you may be allowed to use the vehicle temporarily up to a period of one month.

Clarification: “Persons assigned with a task of fixed duration” shall be deemed:

  • Persons having their normal residence in another member-state who come to work under a contract of specified duration as teaching personnel at the University of Cyprus or at a Private Institution of Higher Education recognised by the Ministry of Education and Culture or at institutions which function in the Republic under bilateral educational agreements.

The duration of temporary use of the vehicle without payment of the excise duties involved is three years from the date of the commencement of the work, and provided the contract is still in force.

  • Persons having their normal residence in another member-state, who come temporarily to the Republic, in order to work under a contract of employment of a specified duration with the Government of the Republic, a Semi-governmental Organisation, legal persons of public law, International Organisations or Foreign State Organisations or Institutes established in the Republic, as well as foreign archeological missions, provided these persons offer particularly specialised work.

The duration of temporary use of the vehicle without payment of the excise duties involved is that of the duration of the contract of employment.

  • Persons having their normal residence in another member-state, working temporarily in the Republic as reporters of foreign press or foreign radio and television channels in order to cover specific events.
  • Greek Army officers who are transferred to the Republic for a period usually not exceeding two years in order to serve with Greek Force in Cyprus (EL.DY.K.) or with the National Guard.

The duration of temporary use of the vehicle without payment of the excise duties involved is two years.

  • Persons having their normal residence in another member-state, who come temporarily to the Republic exclusively for further education or specialisation in institutions of higher education or hospitals.

The duration of temporary use of the vehicle without payment of the excise duties involved is three years as from the start of the said studies or specialization.

  • Cypriot diplomats, consular staff and other employees of the Ministry of Foreign Affairs, as well as employees having a similar status, who return temporarily to the Republic for business purposes.

The duration of temporary use of the vehicle without payment of the excise duties involved is five years from the date of arrival of these persons in the Republic, provided they still remain temporarily in the Republic for business purposes.

  • Persons having their normal residence in the Republic, who study or continue their studies abroad or are trained in hospitals abroad, as long as they remain outside the Republic for studies or specialisation during most of the academic year or of any year of specialisation.

The duration of temporary use of the vehicle without payment of the excise duties involved is three months, continuous or not, per calendar year.

You are allowed to drive your vehicle temporarily in Cyprus if:

  • You have a valid certificate of registration and road licence of another member state of the EU. If the foreign road licence expires during the vehicle’s stay in Cyprus, you must pay the relevant road tax fees to the Inland Transport Department.
  • You are a holder of a valid driving licence of your country or of an international driving licence.
  • The vehicle is insured by an insurance company, registered and operating in Cyprus, unless it is covered by an International Motor Insurance Certificate, known as Green Card or it bears number plates of a member state of the Multilateral Guarantee Agreement. All the member states have signed the Multilateral Agreement.

While the vehicle is in Cyprus:

  • you shall not lend, sell, pledge, rent or otherwise dispose off it;
  • you shall use it exclusively for your own private needs.

Before the expiration of the six months period, or longer period allowed to you if you fall in one of the special instances, the vehicle must be:

  • transferred outside Cyprus; or
  • placed in a customs warehouse; or
  • destroyed under customs supervision; or
  • abandoned to Customs; or
  • cleared either on payment of excise duty or on relief from it.

In all these cases you must produce to the proper customs officer your vehicle and Form C.104Ο, given to you when you declared the vehicle to Customs on its entry into the island.

Motor vehicles, which have been bought in Cyprus without the payment of the relevant duties and taxes and which are still on the island with visitor´s number plates, are not allowed to be used anymore without the payment of the duties involved.

For more information, you may write to the following address:

The Director,
Department of Customs and Excise
ΤΚ 24539, 1330 Nicosia
Fax no 22407541 
E-mail; nicosia@customs.mof.gov.cy

For oral inquiries you may call any of the following telephone numbers of the Temporary Importations Section at Nicosia Customs House : 22407526, 22407591, 22407525 or 22407538.

The Department of Customs and Excise, in its effort to facilitate the public, has prepared a software in Excel which you can use on your own so as to calculate the excise duty (not the import duty) applicable to a certain vehicle. Enter the particulars required by the software and you will have the payable amount of excise duty. Please be advised that this software is provided to the public for informational purposes only.

It should be noted that for such motor vehicles that up to the 9th September 2013 were already transferred or imported to Cyprus but have not yet been released for free circulation and/or consumption, or were delivered under relief from excise duty under any law, or the excise duty was refunded, or were delivered free of excise duty for temporary use, the amount of excise duty will be charged on the lower amount calculated according to the previous Law 91(I)/2004 up to (No. 3) of 2013 or the new amending law (No. 4) no. 110(I)/2013.

The same treatment shall enjoy motor vehicles that have been shipped on a vessel destined for any legitimate port of Cyprus, up to the 9th September 2013.

The software for the calculation of excise duty for vehicles can be found here.

Please select the program that refers to the vehicle type of your interest (passenger car, double cabin or van, motorcycle)