Those entitled:

In the case of Cypriots (born in Cyprus) who have resided permanently abroad for a continuous period of at least ten years and are returning to resettle permanently in Cyprus, the importation or purchase from Cyprus through an external account (funds must be from abroad) is permitted.

Each family is entitled to one vehicle free of duty and consumer tax up to a total amount of £7000. From the 1st January 1998 all independent persons of Cypriot origin from their parents who are settling in Cyprus and have lived abroad for a continuous period of at least 10 years are entitled to the importation or purchase through external funds of one vehicle. The amount of relief from duty and consumer tax is up to £3000 for 2nd generation Cypriots.

The following types of vehicles can be imported or purchased:
(a) The registration of a used private vehicle (saloon) is permitted provided that at the date of its arrival in Cyprus it is less than 5 years old. The age is calculated from the date on which it was registered as new in any country.

(b) The registration of a used light goods vehicle of up to three tons gross weight, provided that on the date of its arrival in Cyprus it is less than 4 years old. The age is calculated from the date it was registered as new in any country.

RULES AND REGULATIONS

• Overseas Cypriots who wish to register such a vehicle must initially apply to the District Centre for Motor Vehicle inspection, where the vehicle will be inspected and issued with the required documentation.
• If the vehicle is suitable then an application must be made to the district offices for its registration. If the vehicle is over 5 years old an application has to be made to register it exceptionally.
• Irrespective of whether the husband exercises his right to import his vehicle with the exemption from tax up to £7000, his wife is entitled to import her used car, over 5 years old, provided that the provisions and regulations are met and the duty and taxes stipulated by customs are paid.
• Assessment of the value of used cars for customs purposes is determined by the C.I.F. value of its first registration plus the value of any extras (radio, air conditioning etc) less depreciation 15% for the first year and 10% for each year thereafter for up to 4 years. For further information and in case of any changes, it is advisable to contact the Customs Department.
• For used imported vehicles transfer of ownership is not permitted until three years after registration.
• In the case were an applicant (repatriate) wishes to claim exemption from duty on a car, which he or his wife will bring, the vehicle may be handed over temporarily without payment of duty or tax for as long as is needed to deal with the application.
• All funds for payment of the vehicle and/or the import duty must emanate from foreign exchange.
• All documentation described under Customs Concessions and Exemptions for Repatriates is also required for the registration of your motor vehicle.
• Once the application is approved, the relevant approval from Customs and Excise stating the amount of duty exempted will be issued.
• The importation of cars by persons entering the island as "visitors" takes place without the imposition of duty, for a period of six months if a valid certificate of registration and a current circulation licence accompanies the car or for a period of one month if it is not accompanied by the above. The importer undertakes the obligation to effect temporary registration, which may be extended every three months up to one year

ASSESSMENT OF THE VALUE OF USED CARS FOR CUSTOMS PURPOSES
The assessment of the value of used cars is determined on the basis of the following rules:
(a) The C.I.F. value of the car in force at the moment of time of its first registration, as advised by the Valuation Section of Customs Headquarters in 6 monthly lists or by letter in special cases, plus the value of any extras e.g. radio, air conditioning etc.

(b) Special discounts for damage (beyond depreciation for normal use).

Depreciation for normal use as follows:

• 15% for the first year10% for the second year
• 10% for the third year) On the C.I.F. value
• 10% for the fourth year) referred to above
• 5% for each subsequent year
• Depreciation may not exceed 80%

In the calculation of depreciation for such used cars the period of immobilisation in bonded warehousing is not taken into account. In special cases of a protracted period of storage or if other circumstances justify reduction of the value of a car, then the case must be referred to the Director of the Customs Department with a relevant report for a decision as to how much and to what degree the value of the car may be reduced.

Depreciation for normal use cannot exceed 80%. In cases of abnormal wear and tear or damage, which justify greater depreciation, the case must be referred to the Director of the Customs Department with the relevant report for a decision.

The date of the presentation of the confirmation of importation also determines the end of the period for the allowance of discounts, which must be calculated on the basis of, completed years. Months and days must be calculated as fractions of years e.g. 1 187/365 and the percentage calculated to the nearest first decimal place e.g. 11,5%. In cases of damaged cars which have remained immobilised because of an accident, the day of the accident will also determine the end of the period for the allowance of discounts for normal use.

In addition to the discounts above a sum of 5% on the original C.I.F. value may be conceded in the cases of left-hand drive vehicles, which will be converted to right-hand drive, after approval of the Road Transport Department.

Where a car has sustained damaged (e.g. involved in an accident) beyond the wear and tear of normal use, such damage will be assessed on the basis of the reduction in value which the car has incurred and where the lowest of the following amounts must be taken into account:
(a) the C.I.F. value of the parts which need replacing
(b) the cost of repair (including labour) multiplied by the taxable value, and divided by the customs value plus taxes.
The C.I.F. of the parts, which need replacing, can be got from Customs records or from the catalogues of agents/importers. For ease of calculation a sum of 40% can be reckoned on the retail-selling price of the parts, as shown in the valuation report of an independent assessor. A check must be made however that the prices in such valuation reports are correct and not deliberately inflated.

The officer responsible for valuing cars will calculate the depreciation for normal use and the discount where justified a discount of up to £50 for minor damage. A discount for damage over £50 but not more than £200 must be approved by Customs. If the discount for damage exceeds £200 but not £500, the facts of the case with photographs of the damaged car and a valuation report (preferably by an independent assessor e.g. assessor for insurance purposes) must be presented to the Senior Customs Officer for approval. If the discount exceeds £500, the case with all the relevant documents (photographs, valuation report etc) will be sent to the Director with the recommendation report of the Senior Customs Officer for approval. In all cases where discounts for damage are recommended for approval, the relevant cars must not be repaired before the payment of taxes to the Customs Cashier.

In calculating the value of damaged cars, deduction must first be made from the original C.I.F. value of the special discount for damage and the percentages for depreciation for normal use must be deducted from the remaining amount.

These rules for the calculation of the value of used cars are implemented both for cars which are in Cyprus duty free with some legal status and which are put to local use and for imported used cars. In particular with regard to cases of imported used cars the dutiable value must be calculated on the basis of:
(i) the invoiced price plus taxable costs (freight etc)
(ii) the assessed value on the basis of current rules, whichever is the higher.

Note: No relief is granted on for Value Added Tax. VAT is paid to customs according to the value of the motor vehicle at the time of clearance.

Declarations for the customs clearance of used vehicles on form 2A must bear the following note and be signed by the interested owner of the car: "I undertake to pay any sum whatsoever which may not have been paid due to wrong calculation of the taxes or assignment of the wrong customs value".