Police on Friday arrested a 53-year-old man in Limassol on suspicion of detonating an explosive device that caused damage to a car.
The car was parked outside the home of its owner, a 61-year-old man, when the device went off just after midnight.
It caused little damage.
Police said the explosion was caused by an improvised device containing low explosive.
The suspect appears to have financial differences with the owner, police said.
He is expected to appear before court on Saturday for a remand hearing.