A. INTRODUCTION

1. Legal Basis

Community Legislation:

• Regulation (EEC) 918/83
• Directive 83/183 (EEC)

National legislation:

• The Excise Duties (Tax Exemptions Applicable to Imports from a Member-State of the Personal Property of Individuals) Regulations of 2004, no. 376/04
• The Customs Duties (Customs Reliefs) Regulations of 2004, no. 377/04
• The Customs and Excise Duties (Reliefs on Import of Goods) Regulations of 2004, no. 380/04.

2. In general

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Normal residence means the place where a person usually lives, that is for at least 185 days in each calendar year, due to personal and occupational ties.

In the case of a person with no occupational ties, normal residence means the place of personal ties which show close links between that person and the place where he is living.

The normal residence of a person whose occupational ties are in a different place from his personal ties shall be regarded as being the place of his personal ties; provided that such person returns there regularly.

Attendance at a university or school shall not imply that this person has his normal residence in this country.

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Personal property means property for the personal use of the persons concerned or the needs of their household. Such property must not, by reason of its nature or quantity, reflect any commercial interest.

The following in particular, shall constitute ‘personal property’:

1. household effects, i.e. personal effects, household linen, furnishings and equipment intended for the personal use of the persons concerned or for meeting their household needs;
2. Cycles and motorcycles, private motor vehicles and their trailers, camping caravans, pleasure craft and private aero planes.
3. Household provisions appropriate to normal family requirements, household pets and saddle animals;
4. The portable instruments of the applied or liberal arts, required by the person concerned for the pursuit of his trade or profession.

B. TRANSFER OF NORMAL RESIDENCE

Exemption from excise duties is granted property, including a vehicle, imported permanently from another member state by private individuals transferring their normal residence in the Republic.

Exemption is granted for one vehicle only per person, who must be holder of a valid driving license.

(i) Prerequisites in respect of the vehicle

• Possession and use of the vehicle by the person concerned at his former normal place of residence for a minimum of six months before the date of transfer of his normal residence for a minimum of six months before the date of transfer of his normal residence in the Republic.
• Acquisition of the vehicle under the general conditions of taxation in force in the member state from which it is transferred and which is not the subject, on the grounds of exportation, of any exemption or any refund of import or excise duty or VAT.
• The vehicle must be transferred to the Republic not later than 12 months from the date of transfer of the normal residence.

(ii) Restrictions

The vehicle may not be sold, disposed of, hired out, lent, or transferred without the prior approval of the Director of Customs.

(iii) Proof of normal residence

The person concerned must prove that he had his normal place of residence outside the Republic for a continuous period of 12 months from the date of transfer of his normal residence. He must also give proof of his intention to settle permanently in the Republic.

Such proof may be:

1. contract of sale or rent of their residence abroad;
2. Particulars of employment abroad (tax returns, social insurance records, payroll slips etc.)
3. Certificates of children’s attendance at schools abroad;
4. Particulars of employment in Cyprus;
5. Particulars of acquisition of residence  in the Republic (contact of sale or rent);
6. Utility bills, e.g. telephone/electricity/water supply bills;
7. Other documents

(iv) Proof for the vehicle

Such proof may be:

1. motor vehicle registration document;
2. certificate of insurance;
3. sales invoice/receipt of purchase;
4. particulars of the vehicle’s arrival (Bill of lading/Delivery order/Freight receipt/Sailing ticket);
5. other evidence;

C. DOCUMENTS TO BE COMPLETED AND PROCEDURE

Form Aπ. 1 is used for applying for relief from excise duties in case of transfer of normal residence from another European Union member-state. This form can be obtained by requesting it from our Firm.  Please make reference to this articles and to your request in detail.

After completing your form, we will present it to the Customs Station together with the proof to support your claim for relief. You may have to answer to some questions to clarify your application: if the form is completed correctly and the proof you have produced is satisfactory, you will receive an answer in writing.

The above is intended to provide a brief guide only.  This information is given by the Customs of the Republic of Cyprus. It is given by our office only for information purposes.  You should not rely on this.  Any inquiries will be charged on a per hour basis.  Please contact us and we would be glad to assist you.