Car Ownership Costs in Cyprus: Taxes, Insurance, Maintenance

Planning to move to Cyprus and buy a car? Or maybe you already live on the island and are thinking about upgrading your vehicle? In any case, before purchasing, it's essential to carefully consider all the associated costs. In this article, we'll break down in detail how much it costs to maintain a car in Cyprus, including taxes, insurance, and maintenance.

Car Taxes in Cyprus

The tax system in Cyprus is relatively transparent, but the amount of taxes can vary depending on the type of vehicle, its engine capacity, and the year of manufacture. The main taxes that a car owner must pay include:

• One-time registration tax: The amount of this tax is calculated individually for each vehicle based on its characteristics and is paid once upon registration, particularly for newly imported cars.
• CO2 emissions tax: This tax is levied on all vehicles depending on their type. It's also known as the road tax and is paid annually. You can find out how to pay the road tax here.

Car Insurance in Cyprus

The mandatory type of insurance is third-party liability insurance. It covers damage caused to third parties as a result of a road accident. Additionally, you can arrange:

• Comprehensive insurance (full premium insurance): Covers vehicle theft, damage due to accidents, natural disasters, and other risks.
• Accident insurance: Covers life and health of the driver and passengers (usually included in the premium insurance package).

Vehicle Maintenance

Regular vehicle maintenance is the key to its longevity and safety. The cost of maintenance depends on the make and model of the car, as well as the scope of work performed. To clarify repair costs, it's best to book a diagnostic check at CyprusAutoService before purchasing.

Total Cost of Car Ownership in Cyprus

The exact amount you'll spend on car ownership depends on several factors:

• Make and model of the car: The more expensive and powerful the vehicle, the higher the maintenance costs.
• Vehicle age: Newer cars generally require less spending on repairs and maintenance.
• Driving style: Aggressive driving can lead to faster vehicle wear and increased fuel and repair costs.

Special Note!

Fines in Cyprus are just as much a part of your expenses as insurance or maintenance. They should be planned for in advance to avoid financial difficulties. Don’t treat fines as occasional expenses—include them in your overall car ownership budget. After reading all the above, you might wonder, "Is a car really necessary in Cyprus?" Of course! On the island, it's not a luxury but a means of transportation.