Car Taxes in Cyprus

Owning a car in Cyprus comes with certain financial costs. In order to avoid unexpected expenses and to budget properly, it is important to understand what fees you will have to pay when buying and operating a car. In this article we will look at the main aspects of the tax system as it relates to cars.

The main car taxes in Cyprus when buying a car

In Cyprus, there are several types of taxes that need to be considered when importing and owning a car. These include

1. Import duty (import tax) - for imported cars.
2. VAT - Value Added Tax.
3. Registration Fee - a one-off payment at the time of registration.
4. Annual road tax - paid each year.

Let's look at each of these items in detail.

Import Duty

If you intend to import a car into Cyprus, you must be prepared to pay import duties. The rates vary depending on the category of vehicle, weight, and engine power. The rate is calculated based on the customs value, which includes the purchase price plus transport and insurance. For passenger cars, the rate is usually 10%. To pay import duty and VAT, you must complete the SAD form.

Warning. If you are moving to Cyprus to take up permanent residence and the car is included in your personal property list, it is possible to obtain an exemption from this tax. To do this, you must submit an application to the Customs Department.

VAT (VALUE ADDED TAX)

If you buy a new car, you will be charged 19% VAT. If you buy a used car from an authorised dealer, VAT may also be included in the price. It is worth checking this to avoid having to pay VAT to a separate cashier.

Registration fee

Once a car has been imported into Cyprus, it must be registered with the Road Traffic Department. There is a one-off registration fee for this procedure, which is calculated based on

1. CO2 emissions - the lower the emissions, the lower the fee.
2. Fuel type - electric cars and hybrids are usually registered at the lowest rate.
3. Age of the car - the older the car, the more likely the charge will increase.

Example rates (indicative):

1. Cars with CO₂ emissions up to 120 g/km: 50-100 Euro;
2. Cars with emissions above 150 g/km: up to 500-1 thousand euros.

Annual road tax

Road tax is compulsory for all car owners in Cyprus. It must be paid by the end of March each year. Late payment is subject to a fine. This type of tax is calculated according to the engine capacity, weight of the vehicle, type of fuel used, date of issue and emissions.

The quickest and most efficient way to renew your vehicle registration is to pay the tax through the JCC Smart portal. Proof of payment of the tax is the driving licence, which shows the date of issue and the month of expiry. The main purpose for which the tax was introduced is to fund the repair and construction of roads in Cyprus.

Additional costs for car owners

Owning a car in Cyprus involves more than just taxes. Other compulsory payments include

1. Car insurance - compulsory. The minimum cost is €150-200 per year. The amount depends on the driver's age, experience and type of car.
2. Vehicle inspection (MOT) - carried out every two years. The cost is around €100.
3. Penalties for breaking the rules - parking incorrectly, speeding or overdue taxes can result in substantial fines.

Tips for saving money

1. Buy fuel-efficient cars. Choose models with low CO₂ emissions and small engines.
2. Consider electric cars. They are exempt from most taxes and can help you save money on fuel.
3. Check all payments. Pay your road tax on time to avoid penalties.
4. Find out about benefits. If you are moving, take the opportunity to exempt your car from import duties.

Car taxes in Cyprus depend on many factors, including the type of car, its emissions and engine capacity. There are significant exemptions for owners of electric and low-emission vehicles, making them a cheaper option.

Understanding the tax system and paying all fees on time will help you avoid penalties and optimise costs. If you are planning to buy or bring a car to Cyprus, research all the details in advance and consult local experts. And remember, a car in Cyprus is a convenience and a comfort, and knowledge of the tax system will make its ownership as beneficial as possible!

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