How is crypto taxed in Cyprus?

What is the 8% crypto tax in Cyprus?

Article 20E of the Income Tax Law 118(I)/2002, effective from 1 January 2026, imposes a flat 8% tax on profits from disposing of crypto-assets, for both individuals and Cyprus companies. A disposal includes selling crypto for fiat, swapping one crypto for another, paying for goods or services with crypto, gifting it, or redeeming it. The crypto-asset definition follows EU Regulation 2023/1114 (MiCA). Simply holding crypto is not taxed — only disposal is.

What crypto income is not covered by the 8% rate?

Three things fall outside the 8% rule. Mining and staking income is taxed as ordinary income when received, at progressive personal rates or the corporate rate, not at 8%. Crypto losses can offset crypto gains only within the same tax year, with no carry-forward and no offset against other income. And the standard personal tax-free allowance does not apply to crypto disposal profits. The 8% applies to all Cyprus tax residents, including non-doms.

What should Cyprus crypto holders do?

Anyone tax-resident in Cyprus who disposed of crypto from 1 January 2026 has a reporting obligation. Keep a full disposal log (acquisition cost, date, proceeds and type of disposal for each transaction), choose a consistent cost-basis method such as FIFO or average cost, and report gains in the annual income-tax return through TaxisNet. If you hold crypto through a Cyprus company or a non-dom structure, take professional advice on the 8% rate and the 15% corporate tax.