The European Commission has formally requested Cyprus to amend its legislation which in the opinion of the Commission, gives more favourable tax conditions to Cypriot citizens, nationals and descen-dants than to other EU citizens when it comes to import and excise duties for imported new passenger cars. The request takes the form of a ‘reasoned opinion.

Under Cypriot legislation, EU nationals who set up permanent residence in Cyprus may only benefit from an exemption from import and excise duty when they import a new car if they are not practising any profession in Cyprus. Such a condition does not apply to Cypriot citizens, nationals and descendants who return to live permanently in Cyprus. Therefore, the Commission is of the opinion that the rule discriminates against non-Cypriot EU citizens and is contrary to Article 18 of the Treaty on Functioning of the European Union. According to the Commission, this treatment also violates the freedom of movement for workers (Article 45 (1) and (2) of the TFEU) and the freedom of establishment (Article 49 of the TFEU).

For full details see http://europa.eu/rapid/pressReleasesAction.do?reference=IP/11/77&format=HTML&aged=0&language=en&guiLanguage=en