Cyprus is preparing a new subsidy scheme to support the purchase of electric vehicles until 2030, as the government seeks to accelerate the country’s transition to cleaner transport while addressing infrastructure gaps and growing traffic pressures.
Presenting the Ministry of Transport, Communications and Works’ 2025 policy review on Monday, Minister Alexis Vafeades outlined the government’s strategy across four main pillars: faster mobility, green transition, improved infrastructure and easier services for citizens.
His briefing covered the expansion of electric mobility incentives, delays in the Paphos–Polis Chrysochous highway, congestion in Limassol, airport capacity pressures and the possible reassessment of a tram system in Cyprus.
Electric mobility subsidies expected to continue until 2030
A key part of the government’s green transition strategy is the expansion of support for electric vehicles.
Vafeades said the Department of Road Transport is preparing a new subsidy programme for electric vehicles that will run until 2030, replacing earlier schemes linked to the Recovery and Resilience Plan which were scheduled to end in 2026.
According to the minister, the electric vehicle market still requires government incentives because prices remain significantly higher than conventional internal combustion vehicles.
“The economy has not yet reached the point where the market will shift towards electric mobility without government intervention,” he said.
In 2025, the government granted around 2,500 electric mobility subsidies worth approximately €21.5 million, indicating a gradual increase in demand for cleaner vehicles.
Government target: 85,000 electric vehicles on Cypriot roads
The government’s long-term objective is for around 85,000 electric vehicles to be circulating in Cyprus by 2030.
However, Vafeades acknowledged that reaching this target depends largely on developments in the global automotive market, particularly pricing trends and manufacturing strategies.
Around 40,000 vehicles are registered annually in Cyprus, and if roughly 15,000 of those registrations become electric vehicles each year, the target could be approached within the decade.
At the same time, the minister noted that hybrid vehicles are also gaining popularity, stressing that the central policy objective is the reduction of emissions, rather than the number of electric vehicles alone.
“If emissions can be reduced through other technologies as well, then the broader environmental targets can still be achieved,” he said.
Charging infrastructure still expanding
The government is also attempting to expand the charging infrastructure needed to support electric mobility.
A scheme financed through the Recovery and Resilience Plan encourages the installation of private charging points, although Vafeades admitted that uptake has been lower than expected.
As a result, authorities are examining the possibility of greater public intervention to strengthen the national charging network.
Delays and relaunch of the Paphos–Polis Chrysochous highway
The long-delayed Paphos–Polis Chrysochous road project was another major issue addressed during the briefing.
Vafeades confirmed that the original contract was terminated after the contractor failed to meet contractual obligations.
Efforts had been made to resolve the situation and keep the project moving, but ultimately the contract termination was considered unavoidable.
“If the project had not been terminated, we would still be at the same point, with construction stalled and no progress,” the minister said.
The Department of Public Works relaunched the tender process in August 2025, but the former contractor submitted 11 appeals to the Tender Review Authority, all of which were rejected.
The appeals delayed the process, with new bids now expected at the end of March.
A second phase of the project, covering the Stroumbi–Polis Chrysochous section, will now be designed as a four-lane motorway rather than a two-lane road.
The minister described the project as essential for improving road safety and strengthening the connection between Polis Chrysochous and Cyprus’ main urban centres.
Limassol congestion and the Northern Bypass project
Traffic congestion in Limassol continues to intensify, driven by rapid population and vehicle growth.
According to the minister, around 13,000 new vehicles are registered in the city each year, placing increasing pressure on the road network.
If roughly 8,000 of those vehicles are used daily, and each performs around 10 journeys per day, the strain on the road system rises dramatically.
Vafeades said the situation is partly the result of limited road expansion over the past 15 years.
To address the issue, the government is promoting the construction of the Limassol Northern Bypass, with tenders for the first two sections expected before the end of the year.
Additional smaller projects are also planned to connect northern areas of the city and reduce congestion at motorway junctions.
Tram system under reconsideration
The possibility of introducing a tram system in Cyprus remains uncertain.
A previous study commissioned by the European Commission concluded that such a project was not economically viable due to the country’s low population density and recommended revisiting the issue in 2035.
However, the Ministry has now requested an updated assessment to determine whether changing conditions could make the project feasible.
“The worst thing you can do is build infrastructure that cannot be maintained,” Vafeades said.
“A project must be sustainable if it is to survive over time.”
Developments at Larnaca and Limassol ports
Turning to maritime infrastructure, the minister said that in 2025 the government signed an agreement for a study on the future development of the Larnaca port and marina, following the termination of the concession agreement with Kition Ocean Holdings.
At the same time, dredging works at the marina are progressing, although delays have occurred due to recent weather conditions.
For the Port of Limassol, Vafeades said state revenues from the concession agreement have increased significantly since 2016, reaching approximately €60 million in 2025.
Container traffic approached 500,000 units, reflecting increased trade activity.
Record passenger numbers at Cyprus airports
The aviation sector recorded another milestone in 2025.
Passenger traffic reached 13.7 million travellers, the highest figure ever recorded, with Cyprus now connected to 41 countries.
The surge has placed pressure on airport infrastructure at both Larnaca and Paphos.
According to the minister, the managing company was contractually required to expand facilities once passenger numbers exceeded specific thresholds in 2018–2019.
Following arbitration that ruled in favour of the state, the second phase of airport expansion has now begun and is expected to significantly improve passenger capacity and services.
Public transport usage slowly rising
Public transport usage in Cyprus is gradually increasing.
Passenger journeys reached 28 million trips, with numbers continuing to rise.
Despite the improvement, however, public transport still accounts for only 3% to 5% of daily mobility in Cyprus.
The minister also addressed concerns about the Pame Express service, clarifying that it has not been discontinued despite the contractor’s request to suspend operations due to a shortage of drivers.
Authorities warned that terminating the service would violate contractual obligations.
Vafeades said the shortage of professional drivers is a wider European problem, and authorities are examining the possibility of lowering the minimum age required for a professional driving licence.
Traffic camera system aimed at road safety
The minister also responded to criticism of Cyprus’ traffic camera enforcement system, stressing that its purpose is road safety rather than revenue collection.
According to ministry data, traffic violations have fallen significantly over the past two years, suggesting drivers are gradually adapting their behaviour.
Experts have also rejected proposals for traffic light countdown timers, arguing that they are incompatible with the smart traffic management systems being implemented across Europe.
Instead, Cyprus is preparing to introduce smart traffic lights capable of automatically adjusting signals based on real-time traffic conditions.
Nine major road projects underway across Cyprus
Vafeades said nine major road infrastructure projects were under construction in 2025, including:
- the Limassol–Saittas road (phase one)
- the Nicosia–Palaichori motorway
- the Astromeritis–Evrychou road
- the Kalavasos bridge upgrade
He also highlighted complex engineering works stabilising the old Paphos–Limassol road near Petra tou Romiou.
Other ongoing projects include the Larnaca–Dhekelia coastal road, expected to be completed this year, and improvements to road access in Episkopi.
Meanwhile, studies are underway for several future projects, including the Denia–Astromeritis motorway, the Polis Chrysochous–Stroumbi road, and further phases of the Nicosia ring road.