Cyprus – Buying or Importing a Car

How do I buy a new car in Cyprus as a foreigner?

There is no requirement to hold Cypriot residency simply to purchase a car — non-residents are permitted to do so. That said, you will ordinarily need a temporary residency permit before you can place the vehicle in your name on the register. This distinction between buying and registering is a practical one worth keeping in mind from the outset, as registration typically demands a confirmed address in Cyprus.

New vehicles are available through authorised franchised dealerships and come backed by manufacturer warranties, though prices tend to be elevated as a result of import duties and taxes. When you visit a dealership, expect to present your passport, a copy of your driving licence, evidence of your address or residency standing, and proof of insurance. Before you can take delivery, you must demonstrate that both insurance coverage and road tax have been arranged.

Paying the full purchase price upfront is not the only option, and Cyprus offers a variety of financing arrangements. Resident customers can access car loans from local banks at competitive rates, though lenders typically expect proof of a reliable income stream, permanent residence, and a satisfactory credit record. Many major dealerships have partnerships with financial institutions offering tailored credit packages, and leasing or hire purchase agreements are also available — these are particularly favoured by expatriates and business customers.

Those purchasing for the first time should anticipate a deposit, commonly falling between 10% and 30% of the vehicle’s total price, with the remainder spread across monthly repayments over a term of 24 to 72 months. If you intend to pay in full with cash but have yet to secure a permanent address, note that an address is required for registration purposes. In some cases, dealers have registered a vehicle to a holiday property address when the buyer provided a tenancy agreement alongside passport and driving licence copies. It is always advisable to verify the most current requirements directly with the Department of Road Transport (DoRT).

How do I buy a used car in Cyprus?

The second-hand car market in Cyprus is lively and well-stocked. Used-car lots and private vendors offer a broad variety of vehicles, sourced notably from Japan, the United Kingdom, and occasionally mainland Europe. Prices and overall condition can differ considerably between sellers. Historically high customs and import levies have meant that pre-owned cars in Cyprus can carry a relatively high price tag, though they still represent better value than equivalent new vehicles once duties are factored in.

Before signing anything, it pays to conduct thorough background checks on any car you are considering. Look into whether there is outstanding finance attached to the vehicle, examine its accident history, and confirm there are no unpaid fines or road tax arrears. Be alert to signs of odometer tampering or corrosion, and if buying through a private arrangement, consider commissioning a professional inspection. The Department of Road Transport can be approached to verify a vehicle’s registration status and history.

When a sale is agreed, both parties must formalise the change of ownership. The required document is form TOM 9B, which must be completed and submitted to the Department of Road Transport (DoRT). Both the buyer and seller are required to sign the form, and identification — whether a passport or Cypriot Residency Card — must be provided by each party. These forms are available in English and can be processed through a local Citizen Service Centre.

Should both parties attend in person at the same time with all the necessary paperwork, the updated registration document is issued on the spot. If the documents are instead posted to the DoRT, the buyer will need to return roughly a week later to collect the new certificate. Before finalising any purchase, always satisfy yourself that the vehicle holds a valid roadworthiness certificate (TOM) and that its road tax is fully up to date.

Can I import a vehicle into Cyprus, and how does the process work?

Bringing a foreign-registered vehicle into Cyprus for permanent use is a considerably involved undertaking that can stretch over several months. Many newcomers choose to engage an import agent to manage the formalities on their behalf. The first fork in the road concerns where the vehicle is coming from — the procedures differ substantially depending on whether it originates inside or outside the EU.

Vehicles arriving from another EU member state are automatically free from customs duty, provided the owner can demonstrate that the car was registered in an EU country prior to its arrival in Cyprus. A VAT rate of 19% applies to new EU vehicles — defined as those under six months old or with fewer than 6,000 km on the clock — whereas for older used vehicles, VAT is typically not charged.

All vehicles brought in from countries outside the EU for long-term use are subject to customs duty. As a general rule, the vehicle must be no more than five years old from its initial registration date at the time it enters Cyprus. Since Cyprus drives on the left, the overwhelming majority of vehicles are configured as right-hand drive (RHD). Left-hand drive (LHD) cars can be imported and registered — especially by expats accustomed to driving on the right in mainland Europe — but models originating from markets other than the UK and Japan typically require a costly and complex conversion to move the steering column to the right-hand side.

A removal goods (transfer of residence) exemption exists for individuals who are permanently relocating to Cyprus. If you are shifting your habitual residence to the island, you may import one vehicle free of duty and tax, on the condition that you have owned and regularly used it for a minimum of six months before your move and that it arrives within 12 months of the date your residence was transferred. To qualify for this customs duty and VAT relief, applicants must show that they lived continuously in another country for at least 12 months immediately before relocating to Cyprus.

The step-by-step import process is as follows:

1. Arrange shipping: Engage a freight company with demonstrated experience in Cyprus imports. When the vehicle arrives at Limassol port, your shipping agent will alert you and provide the relevant shipping documents for collection.
2. Declare the vehicle to Customs: Lodge your Single Administrative Document (SAD) at any Regional Customs Office, together with Form C.104O. This form permits temporary use of the vehicle on Cypriot roads while your application is under review.
3. Apply for duty relief (if eligible): Submit your relief application to any Customs Office or to the Customs Headquarters. Form C104O is valid for one month; if registration has not been completed within that window, visit the local Customs office to request a two-month extension.
4. Pay applicable duties and VAT: For vehicles arriving from outside the EU, import duty and VAT will be assessed and must be paid. You will need to complete an SAD form and supply documentation confirming the vehicle’s customs value, covering the purchase price, freight charges, and insurance costs to the point of entry.
5. Roadworthiness inspection: Submit the relevant documents to the District Vehicle Examination Centre of the Road Transport Department, which will issue a certificate recording the vehicle’s CO2 emissions. The car must subsequently pass a full roadworthiness check at an RTD-approved examination centre.
6. Register the vehicle: All imported cars must be registered within 30 days of entering Cyprus. Take your customs clearance paperwork, Certificate of Conformity, and proof of insurance to the DoRT to complete registration.
7. Pay road tax and obtain plates: Following registration, settle the annual road tax and collect your Cypriot number plates, which are required before driving the vehicle legally on public roads.

The principal government contacts for vehicle imports are the Cyprus Customs and Excise Department (Ministry of Finance), which administers import duties and taxes, and the Department of Road Transport (DoRT) (Ministry of Transport, Communications and Works), which oversees registration and licensing. Always verify current requirements directly with these official bodies before dispatching your vehicle.

What are the costs involved in importing a car to Cyprus?

Importing a vehicle to Cyprus brings with it multiple layers of expenditure. Careful advance budgeting is essential, as the cumulative total can far exceed the vehicle’s original purchase price. The principal cost components are set out below:

The import duty rate for passenger cars stands at 10%, while the figure for commercial vehicles ranges between 10% and 22%. VAT is charged at 19%, computed on the taxable value, which encompasses the customs value of the vehicle together with the import duty. Cyprus applies the CIF method when calculating import duty and taxes — meaning the assessment is based on the goods’ value plus the associated shipping costs.

No import duty is levied where the seller or exporter can demonstrate that the car is of UK preferential origin, confirmed on the invoice. It should be noted, however, that for vehicles manufactured outside the UK — such as those produced by BMW, Mercedes, or FIAT — this confirmation cannot be provided.

A registration tax is also payable when purchasing or importing a vehicle, with the amount determined by engine capacity and CO2 output. Cars emitting no more than 120g/km of CO2 attract a registration tax of €0. Cyprus has put in place exemptions and incentives to promote environmentally friendly transport choices; electric vehicles in particular benefit from considerably reduced registration fees and relief from excise duties.

By way of context, Cyprus’s combined duty and VAT framework is broadly comparable to that of other EU island member states, but the additional compliance demands for non-RHD vehicles — along with the potential excise duty burden — make the Cypriot import process somewhat more intricate than that of many mainland EU countries. Always confirm the current rates and rules with the Cyprus Customs and Excise Department before initiating any import.

How do I register a vehicle in Cyprus?

Vehicle registration in Cyprus falls under the authority of the Department of Road Transport (DoRT), which also administers roadworthiness testing, road tax, and licensing. Three key bodies are involved in the process: the DoRT itself, operating under the Ministry of Transport, Communications and Works, which handles the core registration function; Citizen Service Centres (CSCs), which serve as convenient single-stop locations for completing the necessary paperwork; and the Department of Customs and Excise, which manages import declarations and duties.

In the case of brand-new cars, dealerships frequently take care of registration on the customer’s behalf. For second-hand vehicles, a formal transfer of ownership must be completed. Imported cars require customs clearance, a Certificate of Conformity or a passed roadworthiness test, settlement of any applicable VAT and duties, and then full registration with the DoRT. The key documents you will need to present at registration include:

• Valid passport or Cypriot Residency Card
• Proof of a Cyprus address (such as a rental agreement or recent utility bill)
• Bill of sale or purchase invoice showing the price and date of transaction
• For private sales, a fully completed and jointly signed transfer form; for imported vehicles, the original foreign registration document (for example, a V5C logbook for UK vehicles) showing you as the registered owner — originals only, not photocopies
• Certificate of Conformity (CoC) or Single Vehicle Approval certificate
• Valid roadworthiness (TOM) certificate
• Proof of current insurance cover
• Proof of road tax payment

Before a newly imported vehicle can be registered, it must successfully complete a roadworthiness examination. The relevant documents are first submitted to the District Vehicle Examination Centre of the Road Transport Department, which will issue a certificate recording the vehicle’s CO2 emissions. The car is then required to pass a full roadworthiness inspection at an RTD-authorised centre. This step is comparable to the pre-registration safety assessments that apply in many other jurisdictions before a foreign vehicle can receive local road use approval.

Imported vehicles must be registered within 30 days of their arrival in Cyprus. For new or second-hand vehicles purchased locally, registration should follow promptly after the ownership transfer is formalised. Until registration is complete, road tax cannot be paid and the vehicle cannot lawfully be driven. Consult the Department of Road Transport website for the most up-to-date document requirements and applicable fees.

What insurance do I need to drive legally in Cyprus?

Driving in Cyprus without at least third-party insurance is a criminal offence. A minimum third-party policy covers losses suffered by other parties when you are responsible for an accident. Unlike some countries that operate a government-backed or pooled insurer for mandatory cover, Cyprus has no state insurer — all policies must be obtained through the private market, allowing you to select a product suited to your requirements and financial situation.

Cyprus is a signatory to the Multilateral Guarantee Agreement (MGA), which means that any vehicle properly insured in an EU country automatically enjoys coverage under Cypriot insurance provisions when travelling in Cyprus. This is a useful provision if you are temporarily operating an EU-registered and EU-insured vehicle on the island. Once your vehicle is registered in Cyprus, however, you will be required to hold a Cypriot policy.

Third-party liability cover must be in place before you drive. Insurance in Cyprus is generally more affordable than in much of Western Europe and can often be purchased on the very day you register your vehicle. The minimum annual premium is roughly €150–200 (as of 2024), though the figure varies depending on the driver’s age, experience level, and the type of vehicle insured.

When requesting a quote, insurers will ask about your claims history and any no-claims entitlement. It is well worth obtaining written confirmation of your no-claims record from your current insurer before leaving your home country, as many Cypriot providers will give credit for a proven foreign claims-free history, though individual company policies on this differ. The authority responsible for regulating insurers in Cyprus is the Insurance Companies Control Service (ICCS), which supervises all insurance operators on the island. Confirm the minimum legal requirements with the ICCS or a licensed insurance broker before arranging cover.

What driving licence do I need in Cyprus as an expat?

Visitors and new arrivals in Cyprus may operate a vehicle using a valid international driving permit or their national driving licence, as long as it covers the category of vehicle they wish to drive. Beyond a certain point, however, most foreign licence holders who become long-term residents will be required to exchange their licence for a Cypriot one.

Licences issued by EU member states are recognised in Cyprus. Non-EU visitors may drive on a temporary basis, but if they establish long-term residency, a licence exchange is generally required. Tourists retain the right to drive on a valid foreign licence throughout their lawful stay. The decisive factor is whether you are taking up long-term residency: if so, exchanging your licence typically becomes obligatory.

Converting a foreign driving licence to a Cypriot one is possible where the originating country’s licences are deemed equivalent to Cypriot ones — either by notification from the Commissioner, or because the licence comes from an EU country. The documents required for conversion are as follows:

• Application form TOM 7D; a recent photograph (45×35 mm); your identity card or Alien Registration Certificate (original and photocopy); your passport (original and photocopy of the biographical page); and your foreign driving licence (original and photocopies of all pages).

Cypriot licences are ordinarily valid until the holder reaches 65, after which shorter renewal intervals apply. Drivers aged over 70 must renew every three years and are required to produce a medical certificate in the prescribed format. The body responsible for driving licences in Cyprus is the Department of Road Transport (DoRT), which publishes a full list of recognised foreign licences and details of the exchange process. Always check the current list of bilateral recognition agreements with the DoRT before assuming your licence qualifies for a direct exchange without sitting a test.

How do I sell a car in Cyprus?

Disposing of a vehicle in Cyprus follows a well-defined administrative path, but there are specific obligations resting on the seller that should be understood well before a car is put up for sale. Before advertising the vehicle, gather all relevant documentation, including the registration certificate, evidence of ownership, and any service or repair records. Check that road tax is current and that there are no outstanding fines attached to the vehicle, as unresolved matters of this kind can complicate the transfer process.

Transferring ownership requires form TOM 9B to be completed and lodged with the Department of Road Transport (DoRT). Both the seller and the buyer must sign the document. Transfer of ownership forms are available in English and may be submitted at any local Citizen Service Centre. The seller should keep a copy of the signed TOM 9B as evidence that the vehicle changed hands, protecting them against any future liability arising from the car’s use after the sale.

There is an important tax consideration to bear in mind for vehicles that entered Cyprus under a duty and VAT exemption. If such a vehicle is sold within ten years of importation, the seller or buyer becomes liable for duty and VAT calculated on the vehicle’s value at the point of import, reduced by the applicable annual depreciation allowance. This can significantly affect the net return achieved on a sale, so it is worth factoring in when deciding when and at what price to sell.

In general, the private sale of a car in Cyprus does not attract capital gains tax, but you should seek confirmation from a local tax professional or the Tax Department of Cyprus, as the rules are subject to change and individual circumstances can affect the outcome.

Are there any ongoing costs or obligations for vehicle ownership in Cyprus?

Keeping a vehicle in Cyprus entails a number of recurring expenses and legal duties. Having a clear picture of these from the beginning allows you to plan your budget realistically for the full lifespan of ownership on the island.

Road tax (Circulation Licence): A circulation licence is compulsory for any vehicle used or kept on a public road. The amount of road tax due is determined by factors including engine displacement (CC), vehicle weight, fuel type, age, and emissions output. Road tax falls due annually and may be paid from the start of January through to approximately 11 March without incurring any surcharge; after that deadline, a penalty of €10 plus 10% of the tax amount is applied (as of 2025). As a rough indication, annual road tax for an engine of up to 2.0 litres is approximately €240, rising to around €520 for engines up to 2.6 litres (as of 2024). Payment can be made online, at banks, post offices, or directly at DoRT offices.

Roadworthiness inspection (TOM): The Cypriot equivalent of an MOT is the TOM (Technical Inspection) — a compulsory periodic test designed to ensure vehicles satisfy safety and environmental standards in accordance with EU requirements. Private cars must undergo their first TOM four years after initial registration, with inspections then required every two years thereafter. This broadly mirrors the UK MOT and Ireland’s NCT, though the first test is deferred to year four rather than year three. Inspections are conducted at private technical inspection centres (IKTEO) and, for certain vehicle categories, at public centres (KEMO), all operating under the Road Transport Department. A current TOM certificate is generally required before road tax can be renewed or the vehicle legally driven on public roads. The cost per inspection is approximately €35 (as of 2025).

Insurance: As described above, a minimum third-party liability policy is a legal requirement at all times. Vehicle inspections are conducted every two years, with costs running to around €100 including associated checks (as of 2024). For the latest inspection and road tax fee schedules, consult the Department of Road Transport.

Cyprus has introduced a range of exemptions and incentives to promote cleaner vehicle choices. Electric cars attract particularly favourable tax treatment, including reduced registration fees and relief from excise duties, making them appealing both at the point of purchase and in terms of the ongoing tax burden over the vehicle’s life.

Frequently asked questions

Do I need to be a resident of Cyprus to buy a car?

Residency is not a precondition for purchasing a car in Cyprus — non-residents are entitled to buy one. However, you will ordinarily need to establish legal residency and have a registered address in Cyprus before you can put the vehicle in your name on the register. Since the rules are updated from time to time, check the latest position with the Department of Road Transport (DoRT).

Can I drive a left-hand drive car in Cyprus?

Left-hand drive vehicles can be imported and registered in Cyprus, and this is a route taken by some expats relocating from mainland Europe. That said, finding spare parts and finding a buyer when you come to sell may prove more challenging. LHD vehicles may be imported provided the applicant has owned the vehicle for at least 180 days before it arrives in Cyprus and has not been living in Cyprus for more than five years. For everyday practicality on Cypriot roads, a right-hand drive vehicle is the far more convenient choice.

Is there an age limit on vehicles I can import into Cyprus?

Under standard import rules, the vehicle must generally be less than five years old from the date of first registration when it arrives in Cyprus. If you are moving your primary residence to Cyprus and qualify for the removal goods exemption, vehicles of any age may be registered, but ownership cannot be transferred to another party for three years from the date of registration in Cyprus. Confirm the current age restrictions with the Cyprus Customs and Excise Department before arranging shipping.

How often does my car need an MOT (TOM inspection) in Cyprus?

For a privately owned car, the first TOM inspection is required at the end of the fourth year from initial registration, with subsequent tests due every two years. Inspections take place at private technical inspection centres (IKTEO) and public centres (KEMO) operating under the Road Transport Department. A valid TOM certificate is typically required before road tax can be renewed or the car driven legally. Commercial vehicles and taxis face more frequent inspection schedules.

Can I get a car loan as a foreign national in Cyprus?

Cypriot banks provide car loans to residents at competitive rates, though they generally require applicants to demonstrate a steady income, permanent residency, and a sound credit record. If you lack an established residency or local credit history, a cash purchase or financing arranged through a dealership may be easier to obtain. Contact local banks and dealers directly for the most current lending criteria.

What happens to import duties if I sell a duty-exempt car within 10 years?

If a vehicle that was imported into Cyprus under an excise duty and VAT exemption is sold within ten years of importation, duty and VAT become payable. These are calculated on the vehicle’s value at the time of import, reduced by the annual depreciation applicable for each year elapsed. If you think you may wish to sell the car before the ten-year period is up, plan your finances accordingly and clarify the precise liability with the Cyprus Customs and Excise Department.

Is my EU driving licence valid in Cyprus?

EU driving licences are recognised in Cyprus. Long-term residents holding an EU licence may exchange it for a Cypriot-issued licence. Non-EU licence holders can drive temporarily on their foreign licence, but exchange is generally required once long-term residency is established. To find out which countries’ licences qualify for a direct exchange without the need for a test, consult the Department of Road Transport.

When is road tax due in Cyprus, and what happens if I miss the deadline?

Road tax is payable annually and can be settled without penalty from the beginning of January through to approximately 11 March. Once that deadline passes, a surcharge of €10 plus 10% of the tax amount becomes due (as of 2025). Payment can be made for a full year, half a year, or a quarter year, and is accepted online through the official DoRT portal, at banks, post offices, or Citizen Service Centres. As the exact cutoff date can occasionally shift, always confirm the current year’s deadline with the Department of Road Transport.