Driving licence exchange for UK nationals living in the EU
If you are a UK licence holder living in the EU or EEA you should exchange your UK driving licence for a local EU driving licence before 29 March 2019. From that date, in the event that there is no EU Exit deal, you may have to pass a driving test in the EU country you live in to be able to carry on driving there.
You should consider exchanging your UK driving licence for an EU driving licence as soon as possible. Increased demand may lead to longer processing times and delays to exchanging driving licences the closer it is to 29 March 2019.
You can drive on your EU licence when visiting the UK.
If you return to live in the UK, provided you passed your driving test in the UK or another specified country, you can exchange your EU licence for a UK licence without taking another test.
End of UK Government advice.
Therefore if you hold a UK licence and you have been resident in Cyprus for six months, the advice is to exchange it for a Cyprus one before the UK exits the EU. Details on how to apply are on this site.
It is currently the case that residents of Cyprus from third countries who have been resident for six months must apply for a Cyprus driving licence. Their national driving licence no longer being valid after that time. For a number of countries it is possible to exchange the licence their national licence for a Cyprus one. A list of countries is on this site.