Cyprus Import Tax

Cyprus, an island country in the Eastern Mediterranean, has been a member of the European Union (EU) since 2004. As a member state of the EU, Cyprus applies the EU Common Customs Tariff (CCT) when importing goods from non-EU countries. This unified customs tariff system ensures that all EU countries, including Cyprus, impose the same import duties on goods entering from non-EU countries. Goods traded within the EU benefit from zero tariffs, and Cyprus also benefits from preferential trade agreements with countries and regions outside the EU, such as the European Free Trade Association (EFTA), South Korea, Canada, and Japan. Additionally, Cyprus applies special import duties, such as anti-dumping and countervailing duties, to protect local industries from unfair competition.

Custom Tariff Rates by Product Category in Cyprus

1. Agricultural Products

Agriculture is an important sector in Cyprus, but the country relies heavily on imported agricultural products to meet domestic demand. Tariffs on agricultural imports are influenced by the EU Common Agricultural Policy (CAP) and preferential trade agreements that reduce or eliminate tariffs on agricultural goods from specific countries.

1.1 Basic Agricultural Products

• Cereals and Grains: Cyprus imports cereals such as wheat, maize, and rice, with varying tariffs depending on the product’s origin and processing.
  • Wheat: Imports from within the EU are free from tariffs. For non-EU imports, tariffs range from zero to 45%, depending on the type and processing stage.
  • Rice: Rice imports face tariffs of zero to 65% for non-EU countries, depending on the processing level.
• Fruits and Vegetables: Due to the Mediterranean climate, Cyprus imports fruits and vegetables to meet demand, particularly during off-season months.
  • Citrus fruits (oranges, lemons): Non-EU imports typically face tariffs of 10% to 16%, though preferential rates apply under the EU’s trade agreements.
  • Tomatoes, cucumbers, and leafy greens: Tariffs range from 8% to 14%, with seasonal variations to protect local farmers.
• Sugar and Sweeteners: Cyprus imports significant quantities of sugar, which is subject to the EU’s TRQ (Tariff Rate Quota) system.
  • Refined sugar: Within quota, imports are subject to zero to 20% tariffs, while over-quota imports face tariffs of up to 50%.

1.2 Livestock and Dairy Products

• Meat and Poultry: Cyprus imports a substantial amount of meat and poultry, with tariffs structured to protect local producers.
  • Beef and pork: Duty-free for imports from EU countries. Imports from non-EU countries face tariffs of 12% to 15%, though lower tariffs apply for imports from countries with preferential trade agreements.
  • Poultry (chicken and turkey): Imports are taxed at 12.9%, with preferential rates for certain quantities under TRQs for non-EU countries.
• Dairy Products: Dairy imports such as cheese, butter, and milk powder are regulated to support local production.
  • Milk powder and cheese: Non-EU imports face tariffs of 15% to 25%, though imports from New Zealand, Norway, and other FTA countries may benefit from reduced tariffs.

1.3 Special Import Duties

To protect local agriculture, Cyprus may apply anti-dumping duties or safeguard measures on certain agricultural imports. For example, Cyprus, along with the rest of the EU, has imposed anti-dumping duties on poultry from Brazil to support EU poultry farmers.

2. Industrial Goods

The industrial sector in Cyprus includes manufacturing, construction, and energy, which depend heavily on imported industrial goods such as machinery, equipment, and raw materials. The EU’s Common Customs Tariff applies to non-EU imports, while goods from within the EU and FTA partners enjoy duty-free or reduced tariffs.

2.1 Machinery and Equipment

• Industrial Machinery: Cyprus imports a wide range of machinery to support its manufacturing, construction, and energy sectors.
  • Construction machinery (cranes, bulldozers): Typically taxed at 0% to 2.5% for non-EU countries, with duty-free access for EU member states and preferential treatment for FTA partners like Japan and South Korea.
  • Manufacturing equipment: Tariffs range from zero to 5% for imports from non-EU countries, with zero tariffs for imports from the EU and countries like Japan under the EU-Japan FTA.
• Electrical Equipment: Electrical machinery and equipment such as generators and transformers are essential for Cyprus’ infrastructure projects.
  • Generators and transformers: Typically taxed at 2.5% to 5%, though reduced tariffs apply to imports from FTA partners.

2.2 Motor Vehicles and Transportation

Cyprus imports motor vehicles and automotive components, with tariffs depending on the type of vehicle and its country of origin. The EU’s 10% tariff on motor vehicles applies to non-EU countries, though preferential tariffs are available for FTA partners like South Korea and Japan.

• Passenger Vehicles: Cars from EU countries enjoy zero tariffs.
  • Non-EU-made vehicles: Typically taxed at 10%, though imports from Japan and South Korea benefit from zero or reduced tariffs under respective FTAs.
• Commercial Vehicles: Imports of trucks, buses, and other commercial vehicles are taxed at 10%, with preferential tariffs for countries with FTAs.
• Vehicle Parts and Accessories: Imports of vehicle parts, including engines, tires, and batteries, are taxed at 4% to 10%, with lower tariffs or zero tariffs for parts from FTA countries.

2.3 Special Import Duties for Certain Countries

To protect EU industries, anti-dumping duties have been imposed on certain steel products and automobile parts from China and India to counter unfair trade practices.

3. Textiles and Apparel

Cyprus imports a significant amount of textiles and apparel, particularly from Asia. The EU’s Common Customs Tariff applies to non-EU textile imports, while preferential trade agreements provide reduced tariffs for certain countries.

3.1 Raw Materials

• Textile Fibers and Yarn: Cyprus imports raw materials such as cotton, wool, and synthetic fibers for its textile industry.
  • Cotton and wool: Typically taxed at 4% to 8% for non-EU imports, with zero tariffs for imports from the EU and FTA partners like Turkey and Pakistan.
  • Synthetic fibers: Tariffs range from 6% to 12%, depending on the country of origin.

3.2 Finished Clothing and Apparel

• Clothing and Apparel: Imported garments face moderate tariffs, with preferential treatment for products from countries with trade agreements.
  • Casual wear and uniforms: Typically taxed at 12% to 18%, though imports from Vietnam and Bangladesh benefit from reduced tariffs under the EU’s Generalized Scheme of Preferences (GSP).
  • Luxury and branded clothing: Higher-end garments may face tariffs of 18% to 20%, though imports from South Korea and Japan may benefit from zero tariffs under FTAs.
• Footwear: Imported footwear is taxed at 8% to 17%, depending on the material and country of origin.
  • Leather shoes: Typically taxed at 17%, though reduced tariffs apply for imports from countries like Vietnam and South Korea under trade agreements.

3.3 Special Import Duties

To protect local manufacturers, Cyprus and the EU may impose anti-dumping duties on certain textile and apparel products, particularly from China and India, if these products are sold below market prices.

4. Consumer Goods

Cyprus imports a variety of consumer goods, including electronics, home appliances, and furniture. Tariffs on these products are generally moderate, with lower or zero tariffs for goods from FTA countries.

4.1 Electronics and Home Appliances

• Household Appliances: Cyprus imports most of its household appliances, such as refrigerators, washing machines, and air conditioners, from EU countries, China, and South Korea.
  • Refrigerators and freezers: Typically taxed at 2.5% to 5%, though imports from the EU and FTA countries are duty-free.
  • Washing machines and air conditioners: Subject to tariffs of 5%, with reduced rates for imports from South Korea under the EU-South Korea FTA.
• Consumer Electronics: Cyprus imports electronics such as televisions, smartphones, and laptops, with tariffs that vary by country of origin.
  • Televisions: Typically taxed at 5%, though imports from Japan and South Korea benefit from zero tariffs under FTAs.
  • Smartphones and laptops: Generally taxed at zero to 2.5%, with preferential rates for imports from the EU and FTA countries.

4.2 Furniture and Furnishings

• Furniture: Imported furniture, including home and office furnishings, is subject to tariffs ranging from 4% to 10%, depending on the material and country of origin.
  • Wooden furniture: Typically taxed at 5% to 10%, with reduced rates for imports from Vietnam and Turkey under trade agreements.
  • Plastic and metal furniture: Subject to 4% to 8% tariffs for non-EU imports.
• Home Furnishings: Items such as carpets, curtains, and home décor products are generally taxed at 5% to 10%, though lower tariffs apply for imports from countries like India and Pakistan under the GSP.

4.3 Special Import Duties

The EU applies anti-dumping duties on certain categories of furniture and home furnishings from countries like China to prevent unfair competition.

5. Energy and Petroleum Products

Cyprus imports large quantities of energy products, particularly petroleum and natural gas, to meet its energy needs. Tariffs on energy imports are generally low to support energy security and the transition to renewable energy sources.

5.1 Petroleum Products

• Crude Oil and Gasoline: Cyprus imports petroleum products, particularly from Russia, the Middle East, and neighboring countries.
  • Crude oil: Typically subject to zero tariffs in line with EU energy policies.
  • Gasoline and diesel: Generally taxed at 2.5% to 4%, with lower tariffs for imports from Norway and Russia under trade agreements.
• Diesel and Other Refined Petroleum Products: Refined products are taxed at 3% to 5%, though reduced tariffs apply for imports from neighboring countries.

5.2 Renewable Energy Equipment

• Solar Panels and Wind Turbines: Cyprus, like the rest of the EU, promotes the use of renewable energy by applying zero tariffs on renewable energy equipment, such as solar panels and wind turbines.

6. Pharmaceuticals and Medical Equipment

Cyprus prioritizes access to affordable healthcare, and as such, tariffs on essential medicines and medical equipment are kept low or zero to ensure affordability and availability for the population.

6.1 Pharmaceuticals

• Medicines: Essential medicines, including life-saving drugs, are generally subject to zero tariffs under the EU’s general tariff regime. Non-essential pharmaceutical products may face tariffs of 2% to 5%, though reduced tariffs apply to imports from countries with FTAs.

6.2 Medical Devices

• Medical Equipment: Medical devices, such as diagnostic tools, surgical instruments, and hospital beds, are generally subject to zero tariffs or low tariffs (2% to 5%), depending on the product’s necessity and country of origin.

7. Special Import Duties and Exemptions

7.1 Special Duties for Non-Preferential Countries

Cyprus, in alignment with the EU, applies anti-dumping duties and countervailing duties on certain imports from non-preferential countries. These duties protect EU industries from unfair trade practices, such as dumping or subsidies. For instance, steel products and textiles from countries like China and India are often subject to such measures.

7.2 Bilateral and Multilateral Agreements

• EU Free Trade Agreements (FTAs): As part of the EU, Cyprus benefits from duty-free access to most goods traded within the EU. In addition, Cyprus enjoys reduced or zero tariffs on goods traded with countries such as Japan, South Korea, Canada, and Vietnam under the EU’s FTAs.
• Generalized Scheme of Preferences (GSP): Under the GSP, Cyprus benefits from reduced tariffs on certain imports from developing countries, such as India, Pakistan, and Bangladesh.

Country Facts

• Official Name: Republic of Cyprus
• Capital City: Nicosia
• Largest Cities:
  • Nicosia (capital and largest city)
  • Limassol
  • Larnaca
• Per Capita Income: Approx. $28,000 USD (2023 estimate)
• Population: Approx. 1.2 million (2023 estimate)
• Official Languages: Greek, Turkish
• Currency: Euro (EUR)
• Location: Cyprus is located in the Eastern Mediterranean, south of Turkey and west of Syria.

Geography of Cyprus

Cyprus is an island nation located in the Eastern Mediterranean, covering an area of 9,251 square kilometers. The country is known for its strategic location, diverse landscapes, and rich history.

• Coastline: Cyprus has a coastline stretching over 648 kilometers, featuring sandy beaches, rocky shores, and popular tourist destinations.
• Mountains: The Troodos Mountains dominate the central and southwestern part of the island, with Mount Olympus being the highest peak at 1,952 meters.
• Climate: Cyprus has a Mediterranean climate, characterized by hot, dry summers and mild, rainy winters.

Economy of Cyprus

Cyprus has a small but highly developed economy, heavily reliant on services, trade, and tourism. The country’s economy is characterized by a strong financial services sector, a growing shipping industry, and a significant focus on tourism, particularly along its Mediterranean coastline.

1. Tourism

Tourism is one of the most important sectors of Cyprus’s economy, contributing significantly to GDP and employment. The island’s rich cultural heritage, beautiful beaches, and warm Mediterranean climate attract millions of tourists annually.

2. Shipping and Maritime Services

Cyprus is one of the world’s leading maritime hubs, with a large ship registry and a thriving maritime services sector. The Cyprus Shipping Industry is a major contributor to the national economy, offering services such as ship management and marine insurance.

3. Financial Services

The financial services sector, including banking, insurance, and investment management, is a critical component of Cyprus’s economy. The country has established itself as a regional financial center, particularly for businesses looking to operate in the EU and the Mediterranean region.

4. Energy

Cyprus is exploring opportunities in the energy sector, particularly in offshore natural gas deposits located in the Eastern Mediterranean. The development of energy infrastructure and exploration of natural gas reserves hold significant potential for future economic growth.

5. Agriculture

Although agriculture plays a smaller role in the overall economy, it remains important for rural areas. Major crops include potatoes, citrus fruits, grapes, and olives. The agricultural sector is supported by EU subsidies under the Common Agricultural Policy (CAP).