A large-scale fraud scheme involving the import of used luxury vehicles from the United Kingdom into Cyprus is under investigation after authorities identified systematic undervaluation practices. The Customs Department has already flagged more than 1,000 vehicles for scrutiny and formally informed the European Public Prosecutor’s Office (EPPO).
How the scheme allegedly works
According to Customs Department findings, luxury SUVs and supercars originating from the UK are not shipped directly to Cyprus. Instead, they are routed through EU member states, primarily Bulgaria and the Netherlands.
There, vehicles are allegedly declared at significantly reduced values using falsified invoices and supporting documents. In some cases, declared values were as low as one twentieth of the actual purchase price. Once cleared as EU-origin vehicles, they can then move to Cyprus without additional duties or VAT.
Scale of the financial impact
Authorities estimate that each vehicle imported through this method deprives public finances of thousands of euros. With hundreds of vehicles potentially involved, total losses are estimated in the tens of millions across EU member states, including Cyprus.
Among the vehicles examined are models valued between €200,000 and €300,000, which were reportedly customs-cleared at much lower declared values in other EU jurisdictions.
Customs investigation findings
Over the past 16 months:
- More than 1,000 vehicles were examined
- Dozens of suspected falsified document cases were identified
- Some duties were calculated based on values five to twenty times lower than real purchase prices
Where false documentation is confirmed, those involved face strict penalties under the Customs Code Law, civil recovery of unpaid duties and taxes, plus financial surcharges and interest.
EPPO involvement and cross-border checks
The Customs Department has notified both the EPPO and authorities in Bulgaria and the Netherlands, requesting verification of declared values and tax payments at the first point of EU entry.
Once a vehicle’s value is accepted and taxed in one EU member state, additional taxation cannot be imposed in subsequent member states, making first-entry valuation critical.
Additional fraud patterns under investigation
Authorities are also examining cases where older luxury vehicles, which cannot legally be imported if over five years old, were allegedly declared as newer models to bypass import restrictions and maximise resale profit.