For anyone importing a car to Cyprus, the duty and VAT detail below is where most budgets are won or lost.
Cyprus continues to be one of the most electric vehicle-friendly markets in Southern Europe, offering generous financial incentives for transitioning to EVs through the Department of Road Transport (TOM). The program, co-financed by the EU Recovery and Resilience Facility, previously provided subsidies of up to €9,000 for the purchase and import of eligible electric vehicles.
However, it is important to note one key point: the new phase of the subsidy program has not yet opened. The previous round of funding has already concluded, and the government of Cyprus has not officially announced the dates for the launch of the next application window. This is particularly important for importers, as purchasing a vehicle today does not guarantee automatic eligibility for future subsidies if the new program is not officially approved.
Nevertheless, understanding how the subsidy system works remains useful for buyers planning to import EVs to Cyprus in the future.
What subsidies were available previously?
Under the last electric mobility program, Cyprus offered:
- up to €9,000 for a new fully electric passenger car (BEV)
- up to €9,000 for an imported used electric vehicle
- increased grants for large families and people with disabilities
- additional bonuses for scrapping an old vehicle in certain categories
While hybrids also benefited from lower taxes and operating costs, the largest direct subsidies were aimed specifically at fully electric models.
Can used imported EVs qualify for a subsidy?
Yes — previously imported used electric vehicles were eligible under the Cypriot program, but strict requirements applied.
As a rule, the vehicle had to:
- be fully electric
- be imported from an EU country
- be no older than three years
- have zero CO₂ emissions
- be registered in Cyprus in the name of the applicant
- remain in the ownership of the owner for at least two years after the application is approved
- have a value not exceeding €35,000 for used vehicles
The €35,000 limit is particularly important for importers, as many well-equipped EVs from Germany or the Netherlands easily exceed this threshold after accounting for delivery and registration.
Step 1: Check eligibility requirements before purchasing
Before purchasing a vehicle abroad, it is advisable to carefully review the current requirements from TOM.
Particular attention should be paid to:
- the age of the vehicle
- the date of first registration
- the condition of the battery
- the history of recall campaigns
- compliance with European homologation
- the final cost on the invoice
It is also important to ensure that the declared value of the vehicle remains below the €35,000 limit required for a used EV to participate in the subsidy program.
Since the new phase of funding has not yet been officially confirmed, buyers should not automatically assume that previous rules will remain in place.
Step 2: Import and register the vehicle in Cyprus
Once the vehicle arrives in Cyprus, it must go through the local registration process via the Department of Road Transport.
This typically includes:
- customs clearance
- VAT procedures if necessary
- technical inspection/MOT
- registration in Cyprus
- obtaining local license plates
Historically, applications for subsidies were submitted after the registration was completed, not before the vehicle was imported.
Step 3: Submit an application through the government portal
During active phases of the program, applications were submitted online through the government grant platform.
Typically required were:
- identification or proof of residency
- Cypriot registration certificate
- purchase invoice
- import documents
- bank details
- tax documents if necessary
Previous phases of the program had a limited budget, and demand significantly exceeded available funding. In some cases, the authorities in Cyprus used a lottery system among approved applicants.
Step 4: Receive approval and payment
After approval, the subsidy was transferred directly to the applicant's bank account.
Later, the authorities might request:
- proof of ownership of the vehicle
- confirmation that the vehicle is still registered in Cyprus
- evidence that the vehicle has not been resold before the end of the mandatory ownership period
Violation of ownership conditions could lead to a demand for repayment of the funds received.
Is it still worth considering hybrids?
Although Cyprus is increasingly focusing on fully electric vehicles, hybrids still remain a practical option for many buyers.
Among the advantages:
- lower fuel consumption
- lower taxes tied to emissions
- lower operating costs compared to purely gasoline models
- more convenient long-distance travel in areas with limited charging infrastructure
However, buyers who are counting on direct government financial support should consider: Cyprus's policy is currently clearly focused primarily on fully electric vehicles.
Current Situation
At this time, Cyprus has not opened a new phase of the subsidy program for importing or purchasing EVs. Therefore, buyers considering import should closely monitor official announcements from TOM before making financial decisions based on anticipated future grants.
New phases of the program are still considered likely, as Cyprus continues to move towards EU goals for reducing emissions and electrifying transport. However, neither the launch dates nor the final participation conditions have been officially confirmed.
