As reported recently by the British High Commission, Cyprus’ Department of Road Transport have issued a decree allowing British visitors and tourists to drive in Cyprus using a UK driving licence.
For longer visits, the International Driving Permit ‘1949 IDP’ is necessary. This can be obtained at UK Post Offices at a cost of £5.50 and you must live in Great Britain or Northern Ireland and have a full UK driving licence. Validity is for 12 months and can be purchased up to three months in advance.

However, if you are a resident and plan to stay in Cyprus for longer than six months, you must exchange your UK licence for a Cypriot one before 7/7/2021. You are encouraged to exchange your licence within this period otherwise you may need to take a test.
It is further understood that when visiting the UK, you will be able to drive on your Cyprus licence.