Importing a Car to Cyprus from the UK: Post-Brexit VAT and Registration Tax

Before Brexit, moving a car from the UK to Cyprus was treated as an intra-EU transfer with no customs duty. Since 1 January 2021, UK-registered vehicles are treated as third-country imports, meaning Cypriot customs now applies 10% import duty on the vehicle's customs value (purchase price plus freight and insurance) before any VAT is calculated. This single change has significantly increased the total landed cost of importing a UK car compared to the pre-Brexit era.

The only exception is if you can demonstrate the vehicle qualifies as 'returned goods' — for example, a car that was originally manufactured in the EU, previously registered there, and is now returning within a specific window — but this rarely applies to typical UK-market used cars.

After the 10% duty is applied, Cyprus charges 19% VAT on the combined value of the vehicle, freight, insurance and duty. On top of these, Cyprus levies a registration tax calculated primarily on CO2 emissions, with rates rising steeply for higher-emission vehicles — a small, efficient petrol or hybrid car might attract a modest few hundred euros, while a larger diesel SUV can face a registration tax well into the thousands.

Used vehicles also have their registration tax adjusted by an age-based depreciation scale set by the Cyprus Tax Department, which reduces the taxable value the older the vehicle is, though this doesn't apply to the customs duty or VAT calculation itself.

Cyprus requires imported vehicles to pass a roadworthiness test (similar to an MOT) at a licensed testing centre before registration, along with confirmation of the vehicle's exact CO2 emissions figure — for post-2018 vehicles this should be the WLTP figure from the V5C or manufacturer's certificate of conformity, as this directly determines the registration tax band.

If your vehicle's certificate of conformity doesn't clearly show CO2 data, Cypriot customs may require an independent technical assessment, which can add several weeks to the registration process, so gather this documentation before shipping wherever possible.

Container shipping from Southampton or Tilbury to Limassol typically takes 3–4 weeks, usually routed via a Mediterranean transhipment hub such as Piraeus or Valencia. RORO options are more limited on this route given lower volumes, so most shipments to Cyprus move in shared or sole-use containers.

Costs for a shared 20ft container typically run from £1,100–£1,700, while a sole-use container costs £1,800–£2,600 depending on vehicle size and current freight rates. Use our cost calculator for a specific quote based on your vehicle and preferred sailing date.

You'll need the original V5C or UK export certificate, commercial invoice or bill of sale, bill of lading, certificate of conformity (for CO2 and emissions data), and a completed customs declaration (SAD form) submitted through a licensed Cypriot customs agent. Non-residents and those relocating permanently to Cyprus may be able to claim transfer-of-residence relief, which can waive duty and VAT entirely provided strict conditions are met, including having owned and used the vehicle for at least six months prior to the move.

We work with customs agents in Limassol who can advise whether your specific circumstances qualify for transfer-of-residence relief before you commit to shipping, since this can save several thousand euros.