Relocation

TRANSFER OF HOUSEHOLD EFFECTS AND MOTOR VEHICLE DUE TO TRANSFER OF NORMAL RESIDENCE

If you have decided to move to Cyprus, there are some practical issues you need to know, such as the transfer of your personal property and your motor vehicle.

 

Normal residence

Normal residence means the place where a person usually lives, that is for at least 185 days in each calendar year, because of 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 and who consequently lives in turn in different places situated in two or more member-states shall be regarded as being the place of his personal ties, provided that such person returns there regularly. This last term is not a prerequisite, when the person resides in a member-state for the execution of a task of a defined duration.

 

Note that...

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

 

Personal Property

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’

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

 

Transfer of Normal Residence from another Member State of the European Union

Goods in free circulation in the European Union (EU) are transported from one member-state to another without payment of any import duties. In such a case, it is necessary that a proof of the union status of the goods be submitted to customs.

Persons transferring their normal residence from another member-state of the EU should settle customs-wise their personal effects and their motor vehicle as follows:

 

Union status of household effects

Proof of union status by producing:

• T2L or Τ2LF document; or
• Commercial Documents (invoice, bill of lading, cargo manifest).

 

Union status of motor vehicles

Persons transporting a motor vehicle to the Republic of Cyprus from another EU member-state, for private use, may prove its union status by producing:

• T2L or Τ2LF document; or
• the number plates and the original vehicle registration document issued by the previous member-state.

 

The T2L or Τ2LF document can be obtained from the previous EU member-state Customs Service or through your vehicle supplier or shipper.

 

Vehicle’s Customs clearing Procedure

For the clearance of the vehicle, it is necessary to prove its union status by one of the above ways. It is noted that in order to receive the vehicle from the port, form under title ‘APPLICATION FOR THE VERIFICATION OF THE CUSTOMS STATUS OF UNION GOODS’ must be submitted to Customs accompanied by the invoice (if recently purchased), the original vehicle registration certificate, the delivery order, passport or identity card.

Additionally, for used passenger cars (not including double cabin cars) the Document TOM119A issued by the Department of Road Transport must also be presented to Customs. (Please note that this document is issued upon presenting to the Department of Road Transport the original registration certificate from the previous member-state) . After receipt of the vehicle from the port of entry, the customs clearing procedure must be completed at any District Customs Office within 10 working days after the verification of the vehicle’s union status.

 

Value Added Tax (VAT)

According to VAT Legislation, new Community motor vehicles destined for the Republic are subject to VAT in the Republic; VAT is not imposed on used Community motor vehicles.

A motor vehicle is considered as “used” when transported to the Republic of Cyprus from another EU member-state if both of the following two conditions are met:

1. The period from the date of its first entry into service (date of first registration) up to the date of delivery for the purposes of its acquisition in the Republic of Cyprus (date of purchase for the purpose of its transport to the Republic of Cyprus) is more than six months, and
2. Up to the date of its acquisition, the vehicle has travelled more than 6,000 kilometers.

 

If either (or both) of the above conditions are not met, then, the vehicle will be considered as new upon entry into the Republic of Cyprus and will be liable for payment of VAT, regardless if VAT has previously been paid in the previous member-state.

You may find the “Declaration” form in the Department of Customs and Excise website: https://www.mof.gov.cy/ce → “Service Desk” → “Forms” → “Reliefs” →“Declaration”

 

Transfer of Normal Residence from a country outside the European Union (Third Country)

Persons who transfer their normal residence from a third country to the European Union are allowed to import without payment of import duties and Value Added Tax (VAT) their personal property. In the case of motor vehicles, relief may be granted only to one private use motor vehicle per person concerned who must be in possession of a regular driving license.

 

Terms and Conditions

Relief may be granted provided that personal property:

• has been in the possession and use of the persons concerned, at their former normal place of residence, for a minimum of six months before the date on which they cease to have their normal place of residence in the third country of departure,
• is intended to be used for the same purpose at the new normal place of residence,
• is brought and declared into the Republic within 12 months from the date of transfer of residence.

 

Please note that relief may be granted only to persons whose normal place of residence has been outside the customs territory of the Community for a continuous period of at least 12 months.

Relief may be granted in respect of personal property entered for free circulation before the person concerned establishes his normal place of residence in the customs territory of the Community , provided that he undertakes actually to establish his normal place of residence there within a period of six months. Such undertaking shall be accompanied by a security, the form and amount of which shall be determined by the Director of Customs Department.

 

It is clarified that,

According to the provisions of the legislation on the “Transfer of Normal Residence”, in order for a person to qualify for relief, actual use of the personal belongings in the previous country of normal residence must be fulfilled for a period of at least six (6) months prior to the date on which he/she ceased to have his/her normal residence there. This requirement is satisfied if it is proven that, during the period under consideration, both the person concerned and his/her personal belongings/vehicle were present in that country simultaneously. Any periods during which the person was absent from their previous country of normal residence cannot be counted toward the required six-month period of use.

 

Note that...

Until 12 months have elapsed from the date on which its entry for free circulation was accepted, personal property which has been admitted duty-free may not be lent, given as security, hired out or transferred, whether for a consideration or free of charge, without prior notification to the Director of Customs Department.

 

Exceptions

No relief from import duties and VAT 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.

 

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 Cyprus. Such proof may be:

• contracts of sale or rent of their residence abroad;
• particulars of employment abroad (tax returns, social insurance records, payroll slips etc.);
• certificates of children’s attendance at schools abroad;
• utility bills, e.g. electricity/water supply bills/bank accounts etc;
• particulars of acquisition of residence in the Republic (contract of sale or rent);
• particulars of employment in Cyprus;
• attendance of his children at a school in the Republic;
• other evidence, deemed necessary.

 

Proof for the motor vehicle

• motor vehicle registration document;
• certificate of insurance for a period of at least six months;
• sales invoice/receipt of purchase;
• particulars of the vehicle’s arrival (Bill of lading/Delivery order/Freight receipt/Sailing ticket);
• other evidence, deemed necessary.

 

Documents to be completed and procedure

Form “Απ. 2” for the transfer of normal residence from a third country.

You may find the form in the Department of Customs and Excise website: www.mof.gov.cy/ce → “Service Desk” → “Forms” → “Reliefs” → “Aπ.2 - Transfer of normal residence from a country outside the EU”

 

Further Information:

Address: Customs Headquarters (Ministry of Finance), Corner M. Karaoli and Gr. Afxentiou, 1096 Nicosia Postal address: Customs Headquarters – Relief Section, 1440, Nicosia Telephone numbers: +357 22601872, +357 22601676, +357 22601714 Email: headquarters@customs.mof.gov.cy Nicosia Customs Office: Andrea Kariou 1, Industrial Zone, Engomi, 2409 Nicosia Telephone numbers: +357 22407641, +357 22407532, +357 22407504 Email: nicosia@customs.mof.gov.cy Website: www.mof.gov.cy/mof/customs

 

Registration of Motor Vehicles in the Republic of Cyprus

After a vehicle is cleared from Customs it must be registered before it can be licensed for road tax purposes. The competent authority for matters of motor vehicle registration and circulation fees is the Department of Road Transport of the Republic of Cyprus.

Contact links for the Department are provided below: Email: roadtransport@rtd.mcw.gov.cy Website: http://www.mcw.gov.cy/mcw/rtd/rtd.nsf/index_en/index_en?OpenDocument