Importing a car from a Japanese auction to Cyprus costs 0% customs duty only if the car was built in Japan. The Customs & Excise Department's "Vehicles from Japan" page, checked 12 November 2026, puts the rate at 0% from 1 February 2026 for Japan-origin cars with proof of origin. A car without accepted proof of Japanese origin pays the standard 10%, even when you bought it at a Japanese auction hall. The rate follows where the car was made, not where you bought it.
Quick Answer
- Customs duty is 0% for Japan-built cars with proof of origin, otherwise 10%.
- Import VAT is 19%, charged on the customs value plus duty.
- A used passenger car must be up to 5 years from first registration as new.
- Cyprus registers right-hand-drive cars only, with narrow exceptions.
- Ask for the origin paperwork in writing before you bid.
Where does the 0% come from?
The 0% rate comes from the EU–Japan Economic Partnership Agreement, applied in Cyprus by the Customs & Excise Department. Its Vehicles from Japan page, checked 12 November 2026, says the duty on Japan-origin passenger cars fell in stages and reached zero on 1 February 2026. It applies to new and used cars alike.
Without proof of origin, Customs applies the standard 10% for passenger cars. Excise duty on cars was abolished on 22 March 2019, as the Customs & Excise Department's vehicles page confirms.
Is the car Japan-built, and what proof do you need?
Duty depends on where the car was built, not where it was sold. Japanese auction halls also list European makes, and the badge alone does not settle origin. Customs tests each car on its paperwork. If that paperwork is missing, the car clears at 10%.
The two ways to prove origin
Customs accepts two routes.
- Statement on origin. The exporter writes it on the invoice or another commercial document that describes the car well enough to identify it. Japanese exporters add their 13-digit corporate number, issued by the Japanese authorities.
- Importer's knowledge. You, as importer, hold documents proving Japanese origin and show them to Customs when asked. Customs lists a Certificate of Origin from the Japan Chamber of Commerce and Industry, one from the Japan Inspection Organization, or other documents it assesses first. On this route no statement on origin is needed.
What does not count
The Export Certificate issued for used cars is not proof of origin. Customs says it only adds supporting information alongside one of the documents above.
What to do before bidding
Ask the seller in writing which origin document will come with the car, and who will issue it, before you set a target bid. The auction sheet describes condition but says nothing about origin. No accepted proof means a 10% duty bill.
Is the lot inside the 5-year window?
Cyprus registers a used passenger car from outside the EU only if it is up to 5 years from first registration as new, in any country. The rule is Regulation 4(2) of the Motor Vehicles and Road Traffic Regulations 1984, published by the Road Transport Department (RTD) in its consolidated regulations. Regulation 54(1) limits registration to right-hand-drive cars.
Build in a margin: the crossing takes 30 to 45 days at sea, then clearance follows. Treat a lot near the limit with caution. The exception that matters at auction is vintage status: more than 30 years old with a FIVA certificate.
How is import VAT worked out on a winning bid?
Import VAT is 19% of the customs value plus any duty, according to the Customs & Excise Department's vehicles page. The customs value is the CIF value: cost, insurance and freight, meaning your winning bid plus sea freight to Limassol or Larnaca plus insurance.
VAT is charged on the duty too. The table below is rate arithmetic per €1,000 of customs value, not a car price.
| Case |
Duty |
VAT base |
VAT at 19% |
Duty plus VAT |
| Japan-built, with proof of origin |
€0 |
€1,000 |
€190 |
€190 |
| Other origin, or no proof |
€100 |
€1,100 |
€209 |
€309 |
Auction pages show a "suggested bid" and a "reference sold range" next to each lot. Both are benchmarks from past sales, not prices. Customs sets the final duty and VAT at clearance.
What else should you check before you bid?
Read the auction sheet and its grade before setting a bid. The grade is the auction house's overall condition score. The car is sold as described there and in the exporter's inspection report, with no warranty.
Confirm the lot is right-hand drive. Bidding starts with a card deposit, refundable if the bid loses.
Budget for the fixed charges after arrival, stated here as rules rather than a total:
- Registration fee of €150 under Law 86/1972, Annex I, plus two €1.71 revenue stamps (€3.42) on the purchase invoice, as listed on the RTD registration page.
- Roadworthiness test, the MOT: about €43 at a private test centre (€46 at a government centre) after the 2025 fee increase to the fees first set by Law 1(I)/2007. Confirm the current fee with the centre.
- Annual road tax set by CO2 emissions, which varies by model and is not estimated here.
Who does what in a Japan auction purchase?
The seller is the Japanese exporter, and the contract of sale is with that company in Japan, not with anyone in Cyprus. A card deposit starts a Japan-side inspection of the lot. You confirm your target bid and receive an invoice only if it wins; the invoice states the CIF value. Shipping is with K-Line, monthly, 30 to 45 days at sea to Limassol or Larnaca.
The exporter's part ends when the car is handed to the shipping line in Japan. Customs clearance, duty, VAT and registration happen on the Cyprus side after arrival, and no finance or warranty comes with an auction car.
What doesn't this post show?
No lot prices appear here, by design. The lot counts are a snapshot from 12 November 2026. Origin is tested per car, not per model or badge. The department's older English page still quotes only 10%.
The lot counts come from Carbarn, a Yokohama exporter (Secondhand Dealer Licence No. 452570013005) whose auction pages show which lots meet the Cyprus rules. If you want the steps written out, its how-to-buy page sets out the buying steps, and its import rules page and FAQ repeat the 0% and 10% duty split set out here. It does not clear or register cars in Cyprus, has no Cyprus office or showroom, and offers no finance or warranty.
