Rules and Regulations

Introduction

We recommend checking with a local clearing agent on the latest rules and regulations due to changes happening quite often on rules and import taxes.

Taxes Payable

Vehicle are normally required to pay excise duty, please see below types of vehicles where exice duty is payable.

Normal Vehicles

• 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 above category generally have the excise duty payable based on their c02 emissions. To learn more about how much you would pay, please visit: http://www.mof.gov.cy/mof/customs/Customs.nsf/All/56C4D9A3AB5A5B0AC2257488003A6B03?OpenDocument

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;
• 4-wheel vehicles, which have the appearance of a motorcycle and cannot be not registered for circulation on public roads.

Other Vehicles

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”. We further recommend reading: http://www.mof.gov.cy/mof/Customs/customs.nsf/All/505369EB35BEDE8B422579040055CC92?OpenDocument to learn more about the working of taxes payable.

Qualifying for Exemption from Excise Duties and VAT

Moving Residence:

If you are resident in the UK 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. Normal residence means the place where a person usually lives, that is for at least 185 days in each calendar year, because of personal and occupational ties. In the case of a person with no occupational ties, normal residence means the place of personal ties which show close links between that person and the place where he is living. The normal residence of a person whose occupational ties are in a different place from his personal ties shall be regarded as being the place of his personal ties, provided that such person returns there regularly. This last condition need not be met where the person is living in a member state in order to carry out a task of a definite duration. Attendance at a university or school shall not imply that this person has his normal residence in this country.

TRANSFER OF NORMAL RESIDENCE

Exemption from excise duties is granted for personal property, including a vehicle, imported permanently from the UK by private individuals transferring their normal residence in the Republic. Exemption is granted for one vehicle only per person, who must be holder of a valid driving licence. Prerequisites in respect of the vehicle Possession and use of the vehicle by the person concerned at his former normal place of residence for a minimum of six (6) months before the date of transfer of his normal residence in the Republic. – Acquisition of the vehicle under the general conditions of taxation in force in the member state from which it is transferred and which is not the subject, on the grounds of exportation, of any exemption or any refund of import or excise duty or VAT. – The vehicle must be transferred to the Republic not later than twelve (12) months from the date of transfer of the normal residence.

Restrictions

The m/vehicles, m/cycles, pleasure boats and private aircrafts shall not be disposed of, transferred, hired out or lent during the period of twelve(12) months following its placement in consumption under relief, except in circumstances duly justified to the satisfaction of the Director. If the above items are disposed before the lapse of the twelve-month period and the disposal is not duly justified to the satisfaction of the Director, the relevant excise duty is paid.

Proof of normal residence

The person concerned must prove that he had his normal place of residence outside the Republic for a continuous period of twelve (12)months from the date of transfer of his normal residence. He must also give proof of his intention to settle permanently in the Republic. Such proof may be:

1. contract of sale or rent of his residence abroad;
2. particulars of employment abroad (tax returns, social insurance
3. records, payroll slips etc.);
4. certificates of children’s attendance at schools abroad;
5. particulars of employment in Cyprus;
6. particulars of acquisition of residence in the Republic (contract of sale or rent);
7. utility bills, e.g. telephone/electricity/ water supply bills;

Other documents:

Proof for the vehicle, such proof may be:

1. motor vehicle registration document;
2. certificate of insurance;
3. sales invoice/receipt of purchase;
4. particulars of the vehicle’s arrival (bill of lading/delivery order/freight receipt/sailing ticket);
5. other evidence.

C. DOCUMENTS TO BE COMPLETED AND PROCEDURE

Form 1 is used for applying for relief from excise duties in case of transfer of normal residence from another European Union member state. This form can be obtained from any Customs Station or from the Customs website at www.mof.gov.cy/customs. After completing your form, present it to any Customs Station together with any proof to support your claim for relief. You may have to answer to some questions to clarify your application. When a decision is made you will be informed accordingly in writting. You are required to declare motor vehicles 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:

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

Other Interesting Relief Mechanisms

Families with more than three children

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:

1. 1. 1. below the age of 18;
      2. over 18 years old and is a student of secondary or tertiary education in Cyprus or abroad;
      3. over 18 years old and is in the National Guard doing his service;
      4. 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.

What you are entitled to: 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.

Prerequisites for granting of relief

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.

Procedure for granting of relief

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:

1. 1. 1. marriage certificate;
      2. your children’s birth certificates;
      3. documentary evidence for dependent children over 18 years old;
      4. “Association of Families of over three children” membership card;
      5. 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.

Conditions to be observed after importation

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 We always recommend checking with your embassy, a clearing agent in Cyprus or the authorities in Cyprus to ensure you have up to date information on the rules and regulations. The information here is for guidance purposes only and should not be used as hard and fast rules.