Dorita Yiannakou
The Road Transport Department (RTD) is taking steps to modernize the vehicle market. With a focus on transparent procedures, clearly defined responsibilities, and stricter oversight of the import and sale of new and used vehicles, the department is advancing two legislative initiatives.
As RTD Director Giorgos Louka told K, the first bill to go to public consultation is titled "The Approval and Market Surveillance of Vehicles Law of 2026." It introduces the national implementing provisions of Regulation (EU) 2018/858. Louka explained that the European regulation already applies directly within Cyprus' legal system. The new bill will establish the sanctions, penalties, and alternative requirements for national individual vehicle approval. He said that, until now, Cyprus had been applying the provisions of the previous European framework that had been incorporated into national legislation. The new bill is intended to fully update the national framework to comply with Regulation (EU) 2018/858. The legislation covers the import of grey vehicles. In practical terms, Louka said, imports of vehicles from third countries will be inspected, and technical requirements for authorized laboratories will be clearly defined according to the alternative requirements set out in the bill. The legislation also aims to clearly define the responsibilities of every economic operator involved in importing vehicles, whether they are new or used.
The RTD recently came under criticism from Sotos Trikomitis, president of the Motor Vehicle and Electric Vehicle Importers Association (SEMIO), who told K that Cyprus is not implementing European legislation and Regulation 2018/858 on vehicle approval and market surveillance. He argued that this has resulted in unequal standards within the market.
At the same time, the RTD is seeking to regulate and formally establish the profession of new and used vehicle dealers.
Regulation of the profession
Louka also revealed that a second bill is being prepared under the title "The Regulation and Establishment of the Profession of Vehicle Dealers Law of 2026." The legislation will regulate and formally establish the profession of dealers of both new and used vehicles.
Among other provisions, the bill calls for the creation of a register of new vehicle dealers and a register of used vehicle dealers. It also sets the requirements for entering the profession, defines the obligations and responsibilities of dealers, establishes a licensing system for industry professionals, and provides for administrative and criminal penalties in cases of violations.
According to the RTD, the two legislative initiatives are part of an effort to modernize the vehicle market by improving transparency, clearly defining responsibilities, and creating a more effective system for overseeing vehicle imports and trade in Cyprus.
Public consultation and next steps
Discussing the next stage of the process, Louka said the public consultation will allow citizens and stakeholders to submit their views and recommendations. Meetings with key stakeholders are also planned to explain the proposed regulations.
Once the consultation is complete, the comments will be reviewed and the revised drafts will be sent to the Legal Service for legal drafting review before being submitted to the Council of Ministers and then to the House of Representatives for approval. Louka added that no timetable has yet been set for the passage of either bill.
