Can I Claim Commercial Vehicles as a Business Expense in Cyprus?
Yes. Non-saloon commercial vehicles qualify for a wear and tear allowance of 20% a year, straight-line on cost.
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What Tax Department (Τμήμα Φορολογίας), Ministry of Finance says
Annual wear and tear allowances are straight-line on cost. Commercial (non-saloon) vehicles receive 20%. Private saloon cars receive no allowance. Confirm asset-specific treatment with the Tax Department or a licensed practitioner.
When you can claim
- Vans and pickups used for deliveries
- Vehicles used to carry equipment
- Running costs of commercial vehicles used in the business
- 20% a year allowance on cost
When you cannot claim
- Private saloon cars
- Loan interest on private saloon cars
- Vehicles used privately by the owner
- Costs with no business use record
Good to know
Pro tip: Keep the vehicle registration and a usage log. They show the vehicle is a commercial one used for business.
Related expenses
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