Brexit – Just what will it mean to the Cyprus Car Import Market?
Cyprus, a small Island at the furthest most Eastern part of the Mediterranean Sea considered to be geographically in Asia and the Middle east but politically and culturally European. This small island is made even smaller by the fact it is divided from east to west by a hard border enforced by the United Nations thus dividing North and South. The North is the ‘Occupied area’ as the Greek South see it and a separate Republic as the Turkish North will insist. This has been the Status Quo since 1974 and sees no signs of changing anytime soon. The Southern Republic enjoys EU membership since 2004 when together with 8 others it was granted full EU membership.
Cyprus has no car manufacturing facility and thus being an island, imports all its motorcars. Cyprus adopts the English rule in many areas having been previously part of the British Empire and under English rule, it is of no surprise therefore that Cyprus drives on the left as per the UK and Japan. So it is that 99.9% of all cars on the Island have been imported from the UK or Japan. Japan of course is not part of the EU and therefore considered a ‘3rd Country’. The UK being part of the EU is clearly not a 3rd Country. This means the free movement without any Import taxes or tariffs of goods, including of course motor vehicles, both old and new. It also means no import regulations can be demanded on cars from the UK, not so of course for Japan car imports. Cars from Japan are subject to 10% duty and 19% Vat, plus Import regulations for conformity testing.
This honeymoon may well be just about over of course with the on-going introduction of the pain of all our lives – Brexit. Good or bad for the UK is a different subject, but the impact for Cyprus car Imports and the Cyprus resident wishing to purchase a new or used car is a totally different story.
The current situation is the UK departs from the EU on 31st Jan 2020, that is subject to change of course. There will undoubtably be a transition period as neither side is fully prepared to implement 3rd Country regulations on February 1st
This is highly likely to mean that upon full exit from the EU, cars from the UK entering Cyprus will be subject to 3rd party regulations as per any other country outside the EU. This will mean (unless some magic deal is agreed on tariffs and Import regulations) that car Imports from the UK will be subject to 10% duty and 19% Vat on any imported car – and yes that is of course regardless if the duty and Vat having already been paid within the UK, that’s of no concern, benefit or interest to a EU member state. The cars will also be subject to 3rd Country entry requirements and conformity testing.
Whilst the UK is still a member state of the EU, cars can be imported without penalties, so, as they keep saying – the clock is ticking!
- Algys Autos Imports Ltd offer full sourcing, purchasing, importing and Cyprus registration of any car you wish from the UK or Japan. See our Cyprus Car Import website or call for a no obligation chat. UK Freefone 0800 634 7576 or Cyprus 25 335046.
- Accurate as of 07th December 2019 Cyprus Car Import website click Here
Algys Autos Imports Cyprus and UK Vat and Company Registered