A recurring question for anyone relocating is: “What will a car actually cost in Cyprus?” In 2025 the answer rests on three factors: the method of purchase (local vs. import), the CO₂-based tax regime, and the cost of insurance. This guide brings these elements together in a clear, practical format.
2025 Market Overview — Key Expectations
Used EU imports remain dominant. After the 2019 reform scrapped excise duty on motor vehicles, bringing in a car from the EU became far simpler; VAT mechanics and one-off registration charges still apply, but there’s no excise duty anymore.
CO₂ matters more than engine size. For passenger cars first registered in Cyprus from late-2019 onwards, annual road tax is computed on WLTP CO₂ g/km with a statutory cap of €1,500 and a small Euro-standard surcharge at first registration (not every year).
Gradual EV uptake and targeted grants. Current incentives prioritise low- and zero-emission cars, including purchase grants and registration-tax relief for cleaner vehicles; schemes under the current call run through 31 December 2025.
One-Time Acquisition Costs
A. Buying locally (already Cyprus-registered)
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Title transfer fee: a token €8.54 at the Road Transport Department (TOM 9B + proof of insurance). mcw.gov.cy
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No excise duty in Cyprus since March 2019. Ministerstwo Finansów
B. Importing from the EU (used vehicle)
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Process & forms: inspection (TOM 6), customs form TEL 72A where relevant, MOT/IKTEO and emissions TOM 119 as applicable.
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VAT: typically no VAT again if it’s a used car purchased under normal VAT in another EU state; however, “new means of transport” (≤6 months old or <6,000 km) are taxed where you register—i.e., Cyprus VAT 19%.
C. Importing from the UK (post-Brexit, non-EU)
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VAT on import: 19% on the customs value (which itself may include import duty depending on origin/rules of origin). Plan this before you buy; documentation can reduce duty where preferences apply
Annual Operating Costs — Key Figures
A. Road tax (circulation licence)
How it’s calculated for cars first registered in Cyprus from 1 Dec 2019:
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€0.50 per g/km for the first 120 g/km
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€3.00 per g/km for 121–150 g/km
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€5.00 per g/km for 151–180 g/km
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€10.00 per g/km for >180 g/km
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Annual cap: €1,500
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At first registration only: an extra Euro-standard charge (e.g., €0 for Euro 6; surcharges apply for older diesels/petrols).
Worked example (WLTP 170 g/km petrol):
120×0.50 = €60; 30×3 = €90; 20×5 = €100 → €250/year (below the €1,500 cap).
Deadlines & penalties (2025): renewal opens early January and runs to 11 March; late payment triggers €10 plus 10% of the annual tax, and police can issue €150 fines after the deadline. Payment can be made online via the RTD portal.
B. MOT (roadworthiness)
A valid MOT is required to renew road tax; testing is typically every 2 years for private passenger cars (after the initial period) and costs around €35 at licensed centres.
C. Insurance (what’s compulsory, what it costs)
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Minimum cover: Third-party liability is mandatory under EU rules and Cyprus law. Typical legal limits used by Cyprus insurers are €38.6m per event (injury/death) and €1.3m per event (property damage).
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Typical 2025 premiums (indicative):
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Third-party: ~€170–€450/year
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Comprehensive: ~€250–€2,500/year (vehicle value, driver profile and deductibles drive the range)
Median examples often cluster around €265 (TPL) and €475 (comprehensive).
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Electric, Hybrid and Low-Emission Vehicles in 2025
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Registration-tax relief/ownership minima: Vehicles emitting ≤120 g/km benefit from registration-tax exemptions and minimum ownership-tax rates under the current framework.
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Purchase grants: Up to €20,000 for a new BEV (zero-emission), €9,000 for a used BEV, and up to €15,000 to scrap and replace with a vehicle emitting <50 g/km, subject to scheme terms and funding windows through 31 Dec 2025.
Procedural Guide: Purchasing a Used Vehicle in Cyprus
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Run a chassis/history check; confirm MOT validity and CO₂ value on the logbook.
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Obtain a Cyprus insurance certificate (at least third-party).
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Seller and buyer complete TOM 9B; signatures witnessed (RTD/CSC/authorized officer).
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Pay €8.54 transfer fee and receive the registration certificate in your name.
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Renew road tax online if needed; you can’t renew without valid MOT & insurance.
Procedural Guide: Importing a Pre-Owned Vehicle from the EU
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Before shipping, confirm whether the car is new means of transport—if ≤6 months old or <6,000 km, Cyprus VAT 19% applies on arrival.
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On arrival, complete TOM 6 (inspection) and provide TEL 72A if customs request it; arrange emissions/MOT paperwork (TOM 119) as applicable.
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Pay any one-off registration charges; at first Cyprus registration the Euro-standard table can add a small surcharge for older vehicles.
Key Pitfalls We Help Clients Avoid
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Selecting “cheap” high-CO₂ vehicles that trigger the €1,500 road-tax cap.
Acceptable if budgeted for; unexpectedly costly if overlooked. -
Misapplying VAT on cross-border purchases (especially UK imports).
Imports can attract 19% Cypriot VAT on entry and customs duty unless preferential rules are satisfied and evidenced. -
Omitting emissions/Euro documentation (TOM 6 / TOM 119).
Missing paperwork delays inspection and registration. -
Allowing road tax to lapse after 11 March.
Late payment incurs a fixed penalty plus 10%, with police fines from mid-March; set automated reminders to avoid penalties.
