Subsequent to the Referendum vote of 23 June 2016 the UK is destined to depart from the EU. That much we all know; the details and consequences of that divorce are a little more shrouded in a mystic haze. The truth is of course that no-one at the current point in time knows.
Let us consider our 2nd most expensive purchase, our private motor car. Cars in Cyprus are inherently expensive compared to the UK, a well-laboured and accepted fact. All cars are imported and thus freight charges apply, coupled with higher than normal port fees and registration charges the price rises. Next add on the notoriously annoying Consumption tax (and yes, they are permitted to charge it within EU Regs), the final price starts to become uncomfortable.
This is the current situation and the bitter pill we have all had to swallow. What of after 29th March 2019. What extra fees will be applied when we awake on the 30th? Whilst it would be a brave man to predict this it would not take too much grit to push one’s neck out and say, ‘It won’t be any cheaper’! And unless the UK pulls a big fat rabbit out of the bag I would find it highly unlikely that it will be the status quo.
What is more likely? Well prior to Cyprus entering the EU in May 2004 goods entering Cyprus were subject to import taxes. When Cyprus joined the 28, the common trading regulations commenced and goods coming into Cyprus moved with the free trade agreement, i.e. no tariffs or taxes. This was a huge discount for motorcars as they had been subject to 10% duty and 19% Vat. So about 1/3rd was removed from the price tag. These taxes are more than likely to be re-introduced as the EU insist that any motor vehicle imported into Cyprus from a country outside the EU (of which the UK will be) is subject to Duty & Vat. Also since the 2004 assembly of Cyprus into the EU, conformity testing has been introduced, this is an added test and of course is not free. There are additional restrictions implemented to dissuade trade from outside the party hosts – age restrictions for one. The car will need to be under 5 years old upon arrival in Cyprus.
In a nutshell what does all this mean? It means, if you are considering purchasing a motor car from the UK or bringing over your own vehicle, you need to consider it sooner rather than later or face about a 30% increase in import fees and additional regulations may mean your vehicle could be refused entry.
For any advice, assistance or quotations without obligation feel free to call.
Linton Martin
Limassol 25 335046
