The Cyprus government does not plan to launch a new EV grant programme in 2026 after distributing €49 million to more than 6,200 beneficiaries through four previous funding rounds.
Cyprus is not expected to introduce a new electric vehicle subsidy scheme before the end of 2026, despite growing interest in electric cars and a wider range of affordable models entering the local market.
According to information obtained by K, the government is preparing a new, more targeted electromobility programme that could begin in 2027.
Unlike earlier schemes, the next round is not expected to offer broad subsidies to all buyers. Instead, funding is likely to focus on specific groups and clearly defined transport or environmental objectives.
Cyprus distributed €49 million in EV support
Between December 2021 and November 2025, Cyprus distributed approximately €49 million through the Recovery and Resilience Plan.
A total of 6,203 beneficiaries received support across four funding rounds covering electric vehicle purchases and the scrapping of older, more polluting cars.
The market share of fully electric vehicles also increased slightly during the first half of the year, reaching 4.9%, compared with 4.8% during the same period a year earlier.
However, no new electromobility grant scheme was included in the 2026 state budget.
First EV grants launched in 2021
The first funding round was announced in December 2021 and opened at the beginning of 2022.
It included two main categories:
- grants for buying new fully electric vehicles;
- incentives for scrapping older, high-emission cars.
Under the first call, 678 applicants were approved for electric vehicle grants, while 378 beneficiaries received support through the scrappage programme.
The total budget reached €7.2 million, including €4.4 million for EV purchases and €2.8 million for vehicle scrapping.
Second round maintained the same structure
The second call was announced in December 2022.
It approved 644 grants for electric vehicle purchases and 273 grants for scrapping older vehicles.
Funding totalled €5.6 million, including €4.3 million for EVs and €1.3 million for scrappage incentives.
Demand increased sharply in 2024 and 2025
The third funding round, announced in February 2024, marked a major shift in demand.
By 2025, several new manufacturers had entered the Cyprus market, giving buyers access to more electric models at lower prices than before. The wider selection helped make EVs more attractive to a broader group of consumers.
The third call approved 2,560 electric vehicle grants, supported by a budget of €22.2 million.
A further 831 scrappage grants were approved, with €5.6 million allocated to replacing older vehicles.
Additional funding was added in 2025
As demand quickly absorbed the available funding, the Ministry of Transport introduced supplementary grants in July 2025.
An additional €2.8 million became available, including:
- €2.4 million for electric vehicle purchases;
- €400,000 for scrapping older cars.
This allowed another 234 buyers to receive EV grants, while 49 applicants received scrappage support.
Fourth round focused only on electric vehicles
The fourth call was announced in November 2025 and focused exclusively on fully electric vehicle purchases.
A total of 556 grants were approved, backed by a budget of €5.6 million.
More than 520 beneficiaries had reportedly submitted all required documents to the Department of Road Transport, while around 500 applications had already been paid. The remaining cases were still being processed.
Why Cyprus still faces challenges
Electric cars are becoming more competitive as prices gradually fall and fuel costs remain high.
However, subsidies alone may not be enough for Cyprus to meet its national electromobility targets.
Large numbers of petrol and diesel vehicles continue to enter the market, increasing the size of the overall vehicle fleet. This makes it more difficult for zero-emission vehicles to secure a meaningful share of total registrations.
The European Union is also continuing to pressure manufacturers to offer more affordable electric cars as part of broader plans to reduce greenhouse gas emissions and dependence on fossil fuels.
What to expect from the 2027 scheme
The next Cyprus EV subsidy programme is expected to be more selective than previous rounds.
Rather than offering general grants to all buyers, it is likely to prioritise particular categories of drivers, vehicles or transport needs.
Full details have not yet been announced, but the new approach suggests the government will focus funding where it can deliver the greatest environmental or social benefit.
