Aliens retiring and residing permanently in Cyprus.  Are you entitled?

Under the conditions laid down below, you are entitled to relief from excise duty if you are an alien national having taken up permanent residence in Cyprus without exercising a profession or occupation of any sort.

 

You are entitled to apply for relief on new or used;

• Saloon type motor vehicles
• Station-wagons 
• Jeep (4 x 4) type vehicles 
• Mini-buses capable of carrying up to nine persons.
  

* You are not entitled to apply for motorcycles or other types of motor vehicles.

Relief is granted on the whole amount of excise duty for one vehicle per person. If you have claimed relief on a new vehicle, you will have to pay VAT. If however the vehicle is used and VAT on it has been paid in another member state of the EU and has not been refunded because of its transfer from that state, you will not have to pay VAT.

Relief will be granted if:

• you have taken up residence in Cyprus
• you do not exercise a profession or occupation of any sort 
• none of the members of your family shall be engaged in any type of work in Cyprus 
• the vehicle shall be transferred to Cyprus within a reasonable time period from the approval of the application.
  

How to apply for relief.

A claim for relief must be made in person by you, by completing Application for relief on motor vehicles imported or acquired by aliens who live permanently in Cyprus Form P17, on arrival in Cyprus.

The claim must be submitted to the Relief Section of Customs Headquarters in Nicosia and be accompanied by the following evidence:

• passports of yourself and of your spouse
• evidence of the place of stay (purchase or lease agreement of a house in Cyprus, permission to purchase immovable property within Cyprus) 
• certificate of registration as an alien 
• residence permit from the Immigration Officer 
• your driving licence (of Cyprus or of the country you are coming from) 
• documentary evidence that you are financially independent and that you receive an income from abroad (e.g. bank statements, pension payment certificates, etc.)
  

You should take copies of all the above documents.

If your application for relief is granted you will have to complete form SAD. If you cannot complete it on your own, you may use the services of a clearing agent. You may produce your SAD at any Regional Customs Office. Customs will issue Form C72A and a copy will be give to you. The vehicle must be then produced, together with Form C72A and other documents relating to your vehicle, to the Department of Road Transport for inspection and registration purposes.

Conditions after importation.

You shall not sell, lend, pledge, rent, export, transfer or dispose off it otherwise without the prior approval of the Director of Customs. Persons entitled to drive the vehicle, in addition to you, are your spouse and dependants.

 

The duty-free replacement of the vehicle is permitted on condition that you continue to reside in Cyprus and you have disposed off the duty-free vehicle previously placed in free circulation and use under relief.

 

If you decide to dispose off the vehicle on which relief was granted you will be required to pay the excise duty. Any infringement of the conditions is unlawful and carries severe penalties.