Buying a Car in Cyprus: Important News and Unpleasant Surprises

If you follow our blog and subscribe to updates about the auto business in Cyprus, you're already one step ahead of the rest. Here's why:

What We Feared the Most Has Come True

The dreams of Cypriots about lowering import duties on cars have been shattered by greed and bureaucracy. The EU signed a directive to reduce import duties on cars from Japan (official document), but Cypriot customs found a way around it. Now, to obtain a preferential rate, you must prove that every part of the car, including screws, is of Japanese origin. Moreover, the Japanese side received an absurd list of requirements from Cyprus, including: 

• Written confirmation of the origin of each part (even a bolt or a belt);
• PSR tables showing which components are made in Japan and the added value generated in Japan;
• Calculations of the percentage of Japanese components in the total car composition (RVC and MaxNOM formulas);
• A document explaining why a certain certification form was chosen;
• Specification of the exact department of the company responsible for submitting this form;
• Signature of an authorized person confirming the accuracy of the data;
• And most importantly — this must be prepared for each shipment individually.

This creates obvious difficulties since most modern cars are assembled from components produced in different countries. The Japanese Customs and the Ministry of Finance considered these requirements absurd and unfeasible for exporters of used cars. In the end, the Japanese side officially refused to participate in this bureaucratic circus — which, honestly, makes perfect sense. Even if a car is manufactured in Japan, that’s no longer enough for Cypriot customs — they require documented proof of origin for every single screw. Previously, there were workarounds and rare cases where the preferential rate still applied, but now even those hopes are gone. Consultations revealed that some clients were granted the discount while others were not — which led the Japanese side to express strong disagreement with such selective treatment.

How Much to Add to the Price Now?

According to insider information, all cars will now be subject to a 10% import duty, plus all applicable taxes. To estimate the total cost, add 40% to your CIF (cost + insurance + freight) value. Learn more here

Act Now!

Car tariffs are expected to increase soon. Some people are still thinking… while others are already driving.🎉 And yes, congratulations! Now it's official — car prices in Cyprus are about to skyrocket. So if you're still waiting — it's time to act. Check out our available cars in Cyprus. All vehicles come with full history, no accidents, low mileage, and a warranty.