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Cyprus Road Tax Changes Explained

Consumption Tax in Cyprus Scrapped

The Cypriot Government passed a new law on March 15th 2019 to change the way in which road tax and excise duty is levied on new and used imported cars. The bill was passed by a cross party agreement where 41 of the 48 MP’s supported the bill with just 2 abstaining (5 objecting). The law aims to penalize older, less efficient vehicles in a bid to cut pollution in line with many EU nations and reflects efforts made by governments across the globe. Whilst penalizing the most pollution cars it expects to promote the increase in sales and imports of more environmentally friendly cars.

Cyprus Car Consumption Road Tax Changes

Cyprus has been dubbed a graveyard of older, high polluting vehicles from all over Europe as whilst the worst offending vehicles, generally older diesel and large engined petrol models are penalized heavily elsewhere, Cyprus was seen as a soft touch where these vehicles were not heavily taxed and offered cheap motoring.

That is all set to change with the implementation of a new law that is now is in full force. The law affects excise duty on new and used cars imported to the island and it's road tax system. Whilst it is expected to cost the government around €15m (approx. €13m in lost taxation and €2m in lost VAT), the cross party support demonstrates Cyprus’ appetite to tackle its pollution problem and environmental impact head on.

How to Calculate Road Tax in Cyprus

Road tax in Cyprus is calculated by combining the flat rate tax based on the age and fuel type of the car, plus calcuating the specific taxable rate based on the CO2 (NEDC) emissions.

Flat Rate Road Tax in Cyprus

Classification
Model Year
Fuel
Pre March 2019 Tax
Post March 2019 Tax
Euro4
2005-2009
Diesel
€ 500
€ 600
Euro4
2005-2009
Petrol
€ 250
€ 300
Euro5 (a/b)
2009-2014
Diesel
€ 50
€ 250
Euro5 (a/b)
2009-2014
Petrol
€ 0
€ 100
Euro6
2014-2018
Diesel
€ 0
€ 0
Euro6
2014-2018
Petrol
€ 0
€ 0

CO2 Based Road Tax in Cyprus

CO2 (gr/km)
Pre-2019 Tax
Post 2019 Tax
0-120
€ 0,50
€ 0,50
121-150
€ 3,00
€ 3,00
151-180
€ 3,00
€ 6,00
181+
€ 8,00
€ 12,00
Maximum Charge
no limit
€ 1,500
 
  • Euro4 vehicles (those manufactured between September 2005 and August 2009) will be charged €600 for diesel and €300 for petrol models.
  • Euro5a and Euro5b vehicles (those manufactured between September 2009 and August 2014) will be charged at €250 for diesel and €100 for petrol models.
  • Euro6 vehicles (those manufactured between September 2014 to August 2018) will have zero tax applied, both diesel and petrol models.

Example Road Tax Charges in Cyprus for New Cars

The below table shows some of the most popular model imports over the last 2 years and how the tax changes will affect certain models. It’s evident that the higher polluting, higher CO2 emitting vehicles will see the biggest excise duty tax savings with the Toyota Landcruiser tax being slashed from over €15,000 to zero (Euro6 onwards),
 
Brand
Capacity
CO2
Pre 2019 Duty
2019+ Duty
Pre 2019 Road Tax
2019+ Road Tax
HYUNDAI TUCSON
1.598
126
€ 150
€ 0
€ 18
€ 18
FORD FOCUS
999-1.498
108-114
€ 0
€ 0
€ 57
€ 57
TOYOTA YARIS
1.496
75-110
€ 0
€ 0
€ 55
€ 55
SUZUKI VITARA
1.586
131
€ 275
€ 0
€ 93
€ 93
NISSAN QASQHAI
1.197-1.598
122-129
€ 225
€ 0
€ 87
€ 87
NISSAN JUKE
1.598
149
€ 725
€ 0
€ 147
€ 147
PORCHE PANAMERA (hybrid)
2.894
56
€ 0
€ 0
€ 28
€ 28
JEEP RENEGADE
1.368
137
€ 425
€ 0
€ 111
€ 111
KIA PICANTO
1.248
124
€ 100
€ 0
€ 72
€ 72
KIA RIO
1.368
135
€ 375
€ 0
€ 105
€ 105
MERCEDES E220
1.95
102
€ 0
€ 0
€ 51
€ 51
BMW X1
1.499
122-133
€ 100-650
€ 0
66-99
66-99
LANDROVER RANGEROVER SPORT
1.999
172
€ 1,850
€ 0
€ 216
€ 260
TOYOTA LANDCRUISER
2.755
212
€ 15,050
€ 0
€ 496
€ 620

Theoretically, the maximum annual road tax in Cyprus would be for a EURO4 diesel model with CO2 emissions of over 300 gr/km. The €1,500 EUR cap would come into affect on the CO2 based scale in addition to the flat rate €600 resulting in a maximum road tax of €2,100 for a diesel car and €1,800 for a petrol model.

Cyprus Car Consumption Tax Scrapped

The shortfall in tax revenues from the scrappage of the Consumption Tax will be reclaimed from higher road tax incomes from older, higher polluting vehicles. Road tax for all cars will comprise a flat rate based on the age and fuel type, plus a calculated element based on the CO2 emissions as follows. with fee's ranging from € 0.5 per gr/km of CO2 emitted up to € 12 per gr/km with cap of € 1,500.

Incentives to Remove Older, Higher Polluting Cars

The bill also contains an incentive for people to dispose of older, high polluting cars. The headline policy being those that dispose of class M1 and N1 cars over 15 years and replace with a low emission vehicle will be exempt from any road tax for 5 years. Qualifying cars would need to emit less than 120 gr/km (CO2) and at just €0.5 per gram per km, the maximum saving would be €60 in the first year, €160 in year 2, €260 in year 3, €360 in year 4 and €560 in year 5.

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