How is crypto taxed in Cyprus?

Cyprus crypto tax changed on January 1 2026. A new article in the Income Tax Law, Article 20E, sets a flat 8% rate on profits from disposing of crypto-assets, for both individuals and companies. Before the reform, crypto had no dedicated rule and was handled under general tax principles.

What is the Cyprus crypto tax rate in 2026?

The rate is 8% of the gain. Parliament approved the package on December 22 2025, and six amending laws were published in the Official Gazette on December 31 2025. The new rules apply to tax years starting on or after January 1 2026.

The 8% charge is ring-fenced. Crypto gains do not push other income into higher brackets. For comparison, ordinary personal income tax now runs from 0% on the first 22,000 euros up to 35% on income above 72,000 euros.

How does crypto capital gains tax work in Cyprus?

Tax arises only when you dispose of a crypto-asset. Advisers describe these as taxable events:

• selling crypto for euros or another fiat currency
• exchanging one crypto-asset for another
• using crypto to pay for goods or services
• giving crypto away

Holding crypto without disposing of it does not trigger tax, because there is no year-end revaluation. The gain is broadly what you received minus what the asset cost you, so keeping records of cost basis matters. There is no holding-period discount.

Losses are limited. They can only reduce crypto gains made in the same tax year. They cannot be carried forward or set against salary or other income. Crypto received from mining is excluded from the 8% rate and is taxed as ordinary business income. Advisers have not set out a clear rule for staking yet.

Does non-dom status change Cyprus crypto tax?

Cyprus tax residents are taxed on their worldwide crypto gains, while non-residents are taxed only on Cyprus-source profits. The non-dom regime mainly exempts people from the Special Defence Contribution on dividends and interest, and the reform lets non-doms extend that exemption for a lump-sum payment. The 8% crypto charge sits in the Income Tax Law instead, and the published summaries of the reform do not describe a non-dom exception to it.

What do individuals report in Cyprus?

Crypto gains go on the annual individual tax return, and the reform widened who must file. Cyprus is also bound by DAC8, an EU directive adopted in October 2023 that extends tax information exchange between member states to crypto-assets, so platforms serving EU users increasingly share data with tax authorities. For how these rules compare elsewhere, see crypto tax around the world and crypto losses and taxes.

Rules differ by country and change often. Check the tax authority or a qualified professional for your own situation.