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) Re
gulations of 2004, no. 378/04
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
(i) Normal residence means the place where a person usually lives for
at least 185 days in each calendar year, because of personal and/or
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 the person returns there
regularly.
Attendance at a university or school does not imply that this person
has his normal residence in this country.
(ii) 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’:
a. 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;
b. cycles and motorcycles, private motor vehicles and their trailers,
camping caravans, pleasure craft and private aeroplanes.
c. household provisions appropriate to normal family requirements,
household pets and saddle animals;
d. 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 from
another member state of the European Union;
Exemption from excise duties is granted for personal 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 licence.
(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 in the Republic of
Cyprus.
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 of Cyprus 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, in writing, 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:
a. contracts of sale or rent of their residence abroad;
b. particulars of employment abroad (tax returns, social insurance
records, payroll slips etc.)
c. certificates of children’s attendance at schools abroad,
d. particulars of employment in Cyprus,
e. particulars of acquisition of residence in the Republic (contract
of sale or rent),
f. utility bills, e.g. telephone/electricity/ water supply bills,
g. other documents.
(iv) Proof for the vehicle. Such proof may be:
a. Motor vehicle registration document,
b. certificate of insurance,
c. sales invoice/receipt of purchase,
d. particulars of the vehicle’s arrival (Bill of lading/Delivery
order/Freight receipt/Sailing ticket),
e. other evidence.
C. Transfer of normal residence from a
country outside the European Union;
Relief from import and excise duties and VAT is granted for personal
property of private individuals who transfer their normal residence in
the Republic (i.e. the European Union) from a country which is not a
member of the European Union.
Relief is granted for one vehicle per person only who must be a holder
of a valid driving licence.
(i) Terms and conditions.
Relief shall be granted If the personal property;
has been in the possession and used by the person concerned at his
former normal place of residence for a minimum of six months before
the date on which he ceases to have his normal place of residence in
the third country of departure,
is intended to be used for the same purpose at his new normal place of
residence,
has been acquired according to the general conditions of taxation in
force in the domestic market of the country or origin,
the person concerned had his normal place of residence outside the
European Union for a continuous period of at least 12 months prior to
the transfer of residence,
the personal property must be imported within a period of 6 months
before or 12 months after the transfer of the normal residence in the
European Union. In case the personal property is transferred prior to
the transfer of the normal residence, the person concerned shall
undertake to transfer it within a period of 6 months and shall give
security, the kind and amount of which shall be specified by the
Director of Customs.
(ii) Restrictions;
The personal property for which relief is granted shall not be lent,
pledged, hired out or transferred during the period of 12 months
following its importation unless the import duties are paid on
permission by the Director of Customs.
(iii) Exceptions;
No relief shall be granted for:
alcoholic products,
tobacco or tobacco products,
commercial means of transport,
articles for use in the exercise of a trade or profession, other than
portable instruments of the applied or liberal arts.
(iv) Proof of normal residence ;
The person concerned must prove that he had his normal place of
residence outside the European Union 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 European
Union.
Such proof may be:
a. contracts of sale or rent of their residence abroad,
b. particulars of employment abroad (tax returns, social insurance
records, payroll slips etc.)
c. certificates of children’s attendance at schools abroad,
d. particulars of employment in the Republic of Cyprus,
e. particulars of acquisition of residence in the Republic of Cyprus
(contract of sale or rent),
f. utility bills, e.g. telephone/electricity/ water supply bills,
g. attendance of his children at a school in the Republic of Cyprus,
h. other documents.
(v) Proof for the vehicle;
a. Motor vehicle registration document;
b. certificate of insurance;
c. sales invoice/receipt of purchase;
d. particulars of the vehicle’s arrival (Bill of lading/Delivery
order/Freight receipt/Sailing ticket);
e. other evidence.
D. Documents to be completed and procedure;
Form
Απ. 1 for the transfer of normal residence from another member
state of the European Union.
Form
Απ. 2 for the transfer of normal residence from a country outside
the European Union.
After completing your form, present it to any Customs Station or to
Customs Headquarters together with any 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.
E. Additional information;
For additional information, you may apply to Customs Headquarters,
Ministry of Finance, at the following address:
Corner M. Karaoli and Gr. Afxentiou
1096, Nicosia
The postal address is: Director of Customs, Customs
Headquarters,
1440, Nicosia, Cyprus.
E-mail address: headquartersATcustoms.mof.gov.cy
