Can I Claim Private Saloon Cars as a Business Expense in Cyprus?
No. Costs of private saloon cars, and related loan interest, are not deductible, and saloon cars get no capital allowance.
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What Tax Department (Τμήμα Φορολογίας), Ministry of Finance says
Expenses of private saloon cars and related loan interest are not deductible for corporate income tax. Private saloon cars receive no wear and tear allowance. Commercial (non-saloon) vehicles are treated differently.
When you can claim
- Commercial (non-saloon) vehicles used in the business, with a 20% wear and tear allowance
- Taxi or rental costs for individual business trips, with receipts
- Fuel and running costs for qualifying commercial vehicles
- Staff travel expenses with a business purpose
When you cannot claim
- Running costs of private saloon cars
- Loan interest on a private saloon car
- Capital allowance on a private saloon car
- Personal use of a company vehicle
Good to know
Pro tip: Check the vehicle type before buying. A commercial (non-saloon) vehicle can earn an allowance that a saloon car cannot.
Related expenses
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