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January 25, 2026
10 min

Cyprus €20,000 EV Grant: Europe's Most Generous Incentive

Cyprus offers up to €20,000 for electric vehicles — the highest in Europe. Here's everything about eligibility and how to apply.

NextGreenPath

EV Expert

Cyprus €20,000 EV Grant: Europe's Most Generous Incentive

When I first saw the numbers, I thought it was a typo. €20,000 for buying an electric car? That's not a rebate — that's practically a free car.

But it's real. The small Mediterranean island of Cyprus offers the most generous EV incentive program in all of Europe. And it's not even close.

While Germany ended its subsidies, France offers €4,000, and most EU countries hover around €5,000-€8,000, Cyprus went all in. Here's everything you need to know.

The Grant Structure: What You Can Get

Full Grant Amounts

Vehicle TypeWith ScrappageWithout Scrappage
New Battery Electric (BEV)€20,000€12,000
New Plug-in Hybrid (PHEV)€12,000€8,000
Used BEV (1-5 years old)€8,000€4,000
Used PHEV (1-5 years old)€4,000€2,000
Electric Motorcycle€2,000€1,500
E-Bike€400€300

Additional Benefits (Permanent)

Beyond the grant, EVs in Cyprus enjoy:

  • Zero registration tax (saves €1,000-€5,000 depending on vehicle)
  • Zero annual road tax (saves €100-€300/year)
  • Free parking in many municipal areas
  • Reduced electricity rates for home charging (with special EV tariff)
  • Why Is Cyprus So Generous?

    It's a fair question. Cyprus is a small country with a modest budget. Why are they spending so aggressively on EV incentives?

    The Official Reasons

  • 1. Climate commitments: Cyprus must meet EU emissions targets
  • 2. Energy independence: The island imports all its fuel
  • 3. Air quality: Nicosia and Limassol have pollution issues
  • 4. Economic opportunity: Cheap electricity from solar potential
  • The Real Driver

    Cyprus has one of the lowest EV adoption rates in Europe. They're playing catch-up, and aggressive incentives are the fastest way to move the needle.

    Plus, the math works for the government: importing less fuel saves foreign exchange, and EVs powered by local solar reduce dependence on volatile oil markets.

    What the €20,000 Grant Gets You

    Let's look at real prices after the maximum grant:

    VehicleList PriceGrantYour CostOriginal Savings
    MG4 Standard€32,000€20,000€12,00063% off
    BYD Dolphin€30,000€20,000€10,00067% off
    Nissan Leaf€35,000€20,000€15,00057% off
    Hyundai Kona Electric€38,000€20,000€18,00053% off
    Tesla Model 3€45,000€20,000€25,00044% off
    VW ID.4€48,000€20,000€28,00042% off
    Tesla Model Y€52,000€20,000€32,00038% off

    A brand new MG4 for €12,000. A Tesla Model 3 for €25,000. These are genuinely remarkable prices.

    Eligibility Requirements

    For the Grant

  • 1. Cyprus resident: Must have legal residence in Cyprus
  • 2. One per person: Maximum one grant per individual every 10 years
  • 3. Minimum retention: Vehicle must be kept and registered in Cyprus
  • 4. New purchase: Vehicle must be purchased from authorized dealer
  • For the Scrappage Bonus (+€8,000)

    To get the full €20,000 instead of €12,000, you must scrap an old vehicle:

  • 1. Age requirement: The old car must be 15+ years old
  • 2. Ownership period: Registered in your name for at least 12 months
  • 3. Running condition: Must be a functional vehicle (not already a wreck)
  • 4. Proper disposal: Must use authorized dismantler, get certificate of destruction
  • Important: You can't just buy any old beater for €500 to get the bonus. The 12-month ownership requirement prevents gaming the system.

    How to Apply: Step-by-Step

    Step 1: Check Your Eligibility

    Before anything else, confirm:

  • You're a Cyprus resident
  • You haven't received an EV grant in the past 10 years
  • Your scrappage vehicle (if any) qualifies
  • Step 2: Choose Your Vehicle

    Browse available EVs at Cyprus dealers. Most major brands are represented:

  • Tesla (via authorized importers)
  • Hyundai, Kia
  • VW, Skoda
  • MG, BYD (growing presence)
  • BMW, Mercedes
  • Nissan, Renault
  • Step 3: Purchase the Vehicle

    Complete the purchase with the dealer. You pay full price upfront (the grant is reimbursed after).

    Important: Get all documentation:

  • Invoice with full vehicle details
  • Cyprus vehicle registration
  • Proof of payment
  • Step 4: Scrap Your Old Vehicle (If Applicable)

    If claiming the scrappage bonus:

  • 1. Take your old vehicle to an authorized dismantler
  • 2. Ensure they're on the approved government list
  • 3. Obtain the Certificate of Destruction
  • 4. Keep all paperwork
  • Step 5: Submit Your Application

    Apply through the Ministry of Transport, Communications and Works:

    Required Documents:

  • Completed application form
  • Copy of ID/residence permit
  • Vehicle purchase invoice
  • Cyprus registration certificate (new vehicle)
  • Proof of residence
  • Bank account details for grant payment
  • Certificate of Destruction (if claiming scrappage)
  • Submission Options:

  • Online through the government portal
  • In person at Ministry offices in Nicosia
  • By mail (slower processing)
  • Step 6: Receive Your Grant

    Processing time: Typically 4-8 weeks for complete applications

    Payment: Direct bank transfer to your Cyprus account

    Tips for Maximizing Your Grant

    Do

  • ✅ Apply as soon as possible (funding is limited)
  • ✅ Double-check all documentation before submitting
  • ✅ Keep copies of everything
  • ✅ Use the scrappage option if you have an eligible vehicle
  • ✅ Consider used EVs if budget is very tight (€4,000-€8,000 grants)
  • Don't

  • ❌ Assume the program will last forever (funding cycles end)
  • ❌ Buy before confirming eligibility
  • ❌ Try to game the scrappage rules (they check)
  • ❌ Forget about the additional registration savings
  • Can Non-Residents Benefit?

    This comes up a lot. The short answer: no.

    You must be a legal resident of Cyprus to receive the grant. Tourists, visitors, and people from other EU countries cannot claim it.

    However, if you're an EU citizen considering a move to Cyprus (popular for tax reasons), the EV grant is a nice bonus.

    Charging Infrastructure in Cyprus

    A valid concern: Can you actually use an EV on a small island?

    The Good News

    Cyprus is only 240 km long. Most modern EVs can cross the entire island on a single charge with range to spare.

    Public Charging

  • 300+ public charging points across the island
  • Fast chargers on all major highways
  • Growing network in Nicosia, Limassol, Larnaca, Paphos
  • Apps: Plugshare works well for finding stations
  • Home Charging

  • Standard residential rate: ~€0.15/kWh
  • Special EV tariff available: ~€0.10/kWh (night rate)
  • Cost to drive 100 km: about €2.50
  • Range Anxiety?

    On an island this size, range anxiety is essentially a non-issue. The longest drive you'd make is about 200 km, and there are chargers everywhere along major routes.

    The Bottom Line

    Cyprus's €20,000 EV grant is genuinely exceptional. If you're a Cyprus resident and in the market for a car, going electric is almost a financial no-brainer right now.

    Even if you don't have a vehicle to scrap, the €12,000 grant plus zero registration and road tax makes EVs significantly cheaper than equivalent gas cars.

    The program won't last forever. Funding is limited and allocated annually. If you're considering an EV, now is the time to act.

    Useful Resources

  • Cyprus Ministry of Transport - Official program information
  • Cyprus EV Association - Community resources
  • PlugShare Cyprus - Charging map

  • Last updated: January 2026. Grant amounts and eligibility may change. Always verify with official sources.

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