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Car Duties Explained

Whether it is against EU law or not the fact remains that we have an environmental tax on car imports in Cyprus. If there is a loop hole I am yet to find it, I did contemplate enlisting the services of Cherrie Blaire but decided it would be cheaper to pay the duty. We are not the only country in the EU to charge such a tax, Ireland on Portugal have similar taxes. The fact remains that the market is dependent on the duty and for example the banks have been effectively financing this duty when giving car loans and in my opinion the removal of duty would be very damaging to the island. It is possible to have a duty deferred car but if you sell the car you have to pay the duty. You could end up in the duty free trap where the duty is more than the car is worth.


How is the duty calculated?

There are three factors that make up the duty engine size , co2 emissions and age of car.

The first thing you have to work out is the standard duty. This is per cc and the rates are as follows; 0-1650 cc = €0.51 per cc , 1651-2250cc = €3.41 per cc, 2251-3000cc = €5.98, 3000+cc = €7.69.

We are going to uses a Honda CRV 2.0 petrol year 2005 as our example. Hence 2000cc x €3.41 = €6820. This then has two adjustments in the following order.

CO2, This is ether a discount for green low emission cars or an addition for high CO2 cars. The CO2 is taken as the manufactures figures and is in grams per 100 km, for example if you were to collect all the CO2 from your cars exhaust pipe over 100km and weigh it this is the figure. The figures are 0-120g = -30%, 121g-165g = -20%, 166g-200g = -10%, 201g-250 g = +10%, 251g+ = +20%.

Our Crv has emissions of 220g per 100km so we have to add on 10% so our new figure is €6820 + €682 = €7502.


Now the good news in the last change of the duties there was a depreciation factor brought in. It was decided that high duty could not be charge on a used car. The new system was fairer. It is however worked out down to the day, I will give examples for years to give the idea . It also varies from saloon to coupe to 4x4. Since we are talking about a Honda CRV , I am working on 4x4 figures. 1 year – 12% , 2 years -27%, 3 years -30%, 4 years – 41% , 5 years – 52% this continues a similar pattern 10 years would get 69% discount. The maximum discount is 95% . Saloon cars hit this at about 12 years but 4x4 take longer to get that low.


To go back to out CRV we will get roughly 50% discount so our € 7500 duty will be hafted to € 3750.


This however is not the only expense in importing a car to Cyprus, You have to pay shipping which is about €1300 and also registration which varies on engine size in our example we are looking at €1000 . Hopefully you will now understand why cars are so expensive in Cyprus, it impossible to bring a so call cheap car from UK to Cyprus because with all the add-ons it will work out more expensive than a car that is already in the market.  

Posted on 04 Oct 2012 by Admin
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