Purchasing a duty-free vehicle in Cyprus

Non-Cypriot citizens who take up permanent residence in Cyprus and do not exercise a profession or occupation of any sort are entitled to purchase a duty free car. They are not entitled to motorcycles or other types of motor vehicles. Those who are entitled to a duty free vehicle, will receive relief on all of the duty, but not the VAT, which is payable.

Prerequisites for granting relief

The applicant must have taken up residence in Cyprus and not exercise a profession or occupation of any sort. Relief is granted for one vehicle only per person. The vehicle shall be imported into Cyprus within a reasonable time period from the time that the application is approved. VAT is paid to Customs according to the value of the motor vehicle at the time of clearance.

Conditions to be observed after import

Immediately after the vehicle is cleared from customs, the entitled person must register it with the Deputy Registrar of Motor Vehicles. The vehicle shall be driven by the entitled person and his/her dependents. The vehicle cannot be sold, lent, pledged, hired, exported, transferred or disposed of in any other way without the prior approval of the Director of Customs.

The duty free replacement of the vehicle is permitted on condition that the alien national continues to reside in Cyprus and has disposed of the duty free vehicle previously cleared by him / her. In case of disposal of the vehicle in question, duties are charged on the value of the vehicle at the time of disposal. Any infringement of the aforesaid conditions constitutes an unlawful act and carries severe penalties.

Procedure for granting relief

Relief is granted after a claim is made by the interested party with the appropriate form, on arrival from abroad to take up permanent residence in Cyprus. The claim must be submitted personally to the relief section of Customs Headquarters in Nicosia. The following original documents, with photocopies must accompany the application:
1. Passports of the applicant and his/her spouse.
2. Evidence of the place of stay (purchase or lease agreement of a house in Cyprus, permission to purchase immovable property within Cyprus from the District Officer)
3. Certificate of registration as an alien.
4. Residence permit from the Immigration Officer
5. Cypriot driving license
6. Written evidence that proves that the applicant is financially independent and that he / she receives an income from abroad (e.g., bank statements, pension payment certificates etc.)

Pafilia can recommend reputable car dealers with whom our clients have had a good purchasing experience with duty free cars.

Further information

If you are interested in importing items such as your car to Cyprus, or purchasing a duty free car in Cyprus, up-to-date information on can be obtained from the Department of Customs and Excise:
The Director
Department of Customs & Excise
Michael Karaoli
1096 Nicosia
Tel: +357 22 601 706 | Fax: +357 22 302 031
email: headquarters@customs.mof.gov.cy