Cyprus Crypto Tax from 2026
From 1 January 2026, Cyprus applies a dedicated 8% flat tax to realised crypto gains. This is set out in Article 20E of the Income Tax Act. This page explains the new rule and what it covers. It also looks at how it works under the Cyprus Non-Dom Regime, how mining, staking, DeFi and NFTs are treated, what happens with non-resident companies, and how the 8% rate compares with other EU countries.
Table of Contents
- The new 8% flat tax for cryptocurrencies
- At a glance: Cyprus crypto tax from 2026
- Legal basis: Article 20E of the Income Tax Act
- When does Cyprus crypto tax apply?
- Benefits of the 8% regime in Cyprus
- Mining and staking: tax treatment in Cyprus
- Cyprus Non-Dom Status: what matters for crypto gains
- Crypto through a Cyprus limited company: 8% instead of 15%
- Non-resident companies: when no Cyprus crypto tax applies
- Loss offset in Cyprus: what the law provides
- What is not covered by the 8% flat tax in Cyprus
- Application from 1 January 2026: treatment of pre-reform holdings
- Our conclusion
- Frequently asked questions on crypto taxation in Cyprus
The New 8% Flat Tax for Cryptocurrencies
Since 1 January 2026, new rules apply to crypto tax in Cyprus. For the first time, there is a dedicated rule for crypto profits: Article 20E of the Income Tax Act. For anyone looking at Cyprus crypto tax, this can bring real advantages.
Parliament passed the rule on 22 December 2025. It was published in the Official Gazette on 31 December 2025. In short, Cyprus now has a clear set of rules for crypto inside the EU.
At a Glance: Cyprus Crypto Tax from 2026
- 8% flat tax on realised crypto gains.
- Legal basis: Article 20E of the Income Tax Act.
- Applies to: individuals and companies tax-resident in Cyprus.
- Tax triggers: sale into fiat, coin-to-coin swap, payment with crypto, gift.
- No tax on holding: only disposals are taxed.
- Losses can usually be set off against gains in the same tax year.
Legal Basis: Article 20E of the Income Tax Act
Gains from the sale of crypto assets are taxed at just 8 per cent. This applies to all persons and companies that are tax-resident in Cyprus.
The meaning of "crypto asset" follows EU Regulation 2023/1114 (MiCA). Cyprus is one of the first EU countries to put the European rules straight into its own tax law. This gives investors more certainty about what to expect.
When Does Cyprus Crypto Tax Apply?
The 8% tax is usually triggered by:
- Selling crypto for euro, dollar or any other normal currency.
- Swapping one cryptocurrency for another.
- Paying for goods or services with crypto.
- Giving crypto assets as a gift.
If you simply hold your crypto and do not sell or swap it, there is usually no tax. Only realised gains are taxed.
Benefits of the 8% Regime in Cyprus
- Low tax rate: at 8%, Cyprus sits well below many other EU countries.
- Separate tax pool: crypto gains are taxed on their own. They are not added to your other income.
- Planning certainty: a fixed rate makes the sums easy to work out.
- Loss relief: losses from crypto can usually be set off against gains in the same year.
Worked example: how the 8% flat tax plays out in Cyprus
Individual. You buy Bitcoin for EUR 20,000 and later sell it for EUR 70,000. The gain is EUR 50,000, and the 8% tax on that is EUR 4,000. In many high-tax EU countries, personal income tax rises with income and can reach around 45 percent. There, the same gain could mean a tax bill of up to EUR 22,500. In countries with a flat capital gains tax of around 27 to 28 percent, the bill would be roughly EUR 13,500 to EUR 14,000.
Cyprus limited company. Your company makes crypto gains of EUR 100,000. Instead of 15% corporate income tax (EUR 15,000), you pay 8%, which is EUR 8,000. The saving is EUR 7,000.
Mining and Staking: Tax Treatment in Cyprus
Crypto earned from mining follows the general tax rules. For companies, that usually means 15% corporate income tax.
For staking, the tax treatment usually depends on the case. Regular staking rewards are normally counted as income at market value, so it is worth checking your own situation.
Cyprus Non-Dom Status: What Matters for Crypto Gains
Cyprus Non-Dom Regime can bring real tax advantages. For Non-Dom persons, dividends, interest, and gains from the sale of securities are generally tax-free in Cyprus. The new 8% crypto tax is part of the Income Tax Act, and it applies whether or not you have Non-Dom Status.
Crypto Through a Cyprus Limited Company: 8% Instead of 15%
If you hold or trade crypto through a Cyprus limited company, you can also use the 8% rate.
Normal company profits are taxed at 15%. Crypto gains are taxed at 8%. The crypto gains are kept separate and are not added to the company's other profits.
Non-Resident Companies: When No Cyprus Crypto Tax Applies
The 8% tax usually applies only when the transaction belongs to Cyprus for tax purposes. There is usually no Cyprus crypto tax for an international company whose:
- business activity is outside Cyprus, and
- management is not based in Cyprus.
Some investors move to Cyprus and use Non-Dom Status. Pairing this with a company outside the EU can open up useful planning options.
Loss Offset in Cyprus: What the Law Provides
Losses from crypto sales can usually be set off against gains from other crypto transactions. As a rule:
- You can only offset losses within the same tax year.
- You cannot carry losses forward into later years.
- Losses reduce only crypto gains, not other income.
This shows again that crypto income is treated on its own under Cyprus tax law.
What Is Not Covered by the 8% Flat Tax in Cyprus
Not all crypto activity gets the 8% rate:
- Mining: follows the general tax rules (15% corporate income tax for companies).
- NFTs: unique, non-fungible tokens do not automatically fall under MiCA, so they are not automatically covered by the 8% rule.
- Certain DeFi earnings: depending on the set-up, these can count as ongoing income.
In these cases the general tax rules apply, and it is wise to review each case on its own.
Application from 1 January 2026: Treatment of Pre-Reform Holdings
The new rule applies to all crypto sales from 1 January 2026 onwards. This includes crypto you bought before that date. The date you bought it does not matter; what matters is the date you sell.
Our Conclusion
With this new rule, Cyprus becomes an attractive home for crypto investors and companies inside the EU:
- 8% on realised crypto gains.
- A clear legal basis through Article 20E.
- Separate taxation, with no effect on your other income.
- Strong potential when combined with Non-Dom Status.
If you hold a larger amount of crypto, it is worth reviewing your structure and the options Cyprus offers. Cyprus crypto tax is becoming a more and more important topic for international investors.
If you have questions about the new crypto tax rules, or want to know what options you have, our team is happy to advise you, free of charge and without obligation. Alongside Cyprus, we also help clients with structures outside the EU, so we can look at your options more widely.
Frequently Asked Questions on Crypto Taxation in Cyprus
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