It is one thing to drive across the continent but to island hop is a completely different matter and involves so much more planning and increased costs. If you are moving goods from one European Union State to another there is no further customs import duty but to be exempt from paying further import duty in Cyprus, however, proof of Community status of the goods must be provided. So, if you are transferring a car to the island for private use from another member state, you may prove its Community status by producing the required documentation which comprises a T2L or Τ2LF document or the number plates and the vehicle registration document issued by a previous member state.
Many people have had experience of transporting cars to Cyprus and comment that the cost and the hassle are just not worth it. Stories that are put about that if you can export a more expensive, marque car then the prices for resale outstrip that which you could obtain in the UK. Again, experience shows that this is just not the case. For example, there are plenty of Jaguar cars in Cyprus so you would not be able to charge a premium price and could lose out drastically.
If you are thinking of car shipping to Cyprus whether it is for a short holiday, or longer term if you are planning to live there, it may be time to think again as the expense, the frustration, and time wasting could be very stressful.
The general advice seems to be either go to Cyprus and rent a car, if you are going on holiday, or sell your car back home and then buy another if you are moving permanently.