I don't have any problem, I abide with the laws of Cyprus, which I am a resident,
thus I don't have to worry whether I'm totally driving legally , in case I have have an accident and have to claim on my insurance or if I am stopped by the police,
obviously you and others asking questions about getting a Cypriot license or not,
show us, you and others are not sure what or what is not required to be fully legal.
Just two points I have thought of, your current driving license should have your current address you reside at, how does that work with your German one'
secondly every driver in Cyprus needs to have certain tests when they get to 70, how does that work when you tell us your German one is for life and you dont need to take any tests, how is that compatible with your Cypriot insurance?