Following the 2026 tax reform, Cyprus becomes one of the few countries in the world with a clear crypto tax framework: a flat 8% on profits from selling, donating, exchanging or spending cryptocurrency, for individuals and companies alike.
The main provisions of the reform affecting the taxation of crypto assets.
Profits from selling, donating, exchanging or spending cryptocurrency are taxed at a flat 8% rate for both physical and legal persons (companies).
Crypto losses can only offset crypto gains within the same tax year. They cannot be carried forward or used against other types of income.
“Crypto-assets” are defined as per EU Regulation 2023/1114 (MiCA) — essentially, digital assets whose value comes from their market value.
Selling crypto, giving it away, swapping it for another crypto, or using it to pay for goods and services all count as “disposals” that trigger tax.
This special crypto tax does not apply to crypto obtained through mining — those profits are taxed under the general income tax rules instead.
Any crypto-related profit not covered by this article is taxed under the normal provisions of Cypriot tax law (Parts III & V).
This page covers how Cyprus taxes crypto profits. If your company holds or moves digital assets, the balance sheet also has to be audited — wallet control proven cryptographically, balances read from the chain, and chain activity reconciled to the ledger. That is a separate engagement, and we run both.
Given the popularity of the topic, our tax team had to specialise in the tax treatment, application and all corporate matters affecting the trading of crypto currency assets. Over the last four years we have obtained a deep knowledge of the matter and obtained tens of tax rulings affecting both companies and individuals. Our frequent correspondence with senior level income tax office examiners ensures that the tax treatment of all cases is now clear.
Most of the literature written by our authors relates to tax years 2025 and before, when there was ambiguity over the taxation of crypto profits in Cyprus for both individuals and corporates. With the 2026 tax reform and the flat 8% corporate or personal tax rate, the treatment is clear and widely understood.
The current guide to the flat rate, what triggers it and how it is applied.
The whole reform in context, of which the crypto rate is one part.
Wallet gains, disposals and the questions individuals and companies ask most.
From 2026
Individuals and corporates are taxed at a flat rate of 8%.
Prior to 2026
Individuals trading in cryptos are subject to PAYE tax as any self employed person would be taxed.
This means that the profits on their trades will be added to their existing salaries and be taxed usually at 35%!!
We strongly recommend you to create a Company to minimise the tax. Contact us for more guidance
Companies (like individuals) pay an 8% flat tax on crypto profits.
Crypto trading is taxed like any other trade and it is subject to 15% Corporation Tax and dividend tax for Cyprus tax residents and domiciled persons.
It does not matter if you trade as an individual or a corporate as the tax rate of 8% is the same in both cases.
The best way to trade Cryptos is via a Cyprus company primarily due to low taxes involved.
Yes you can but you need to bear in mind that you are still taxable on your worldwide income in Cyprus or at the place of your tax residency.
Therefore, even if your Dubai company will not be taxed, the dividends or income you receive must be reported on your tax return at the country of your tax residency.
Using overseas tax free companies could be risky if you do not have the appropriate consultation so please contact us for further guidance.
Getting a tax ruling is very popular and will not generate any potential issues. Different departments of the Cyprus income tax office are dealing with the tax ruling enquiries. In addition it is very profitable for the Cyprus Income Tax Office to receive such enquiries as there are disbursements involved for the application.
I’m looking to setup as a non-dom in Cyprus.
My income comes from a UK Ltd company which is around £50,000-£100,000 per year.
My tax residency is currently Spain, but I want to leave the country.
One of the main reasons I’m interested in the Cyprus non-dom status is if I can cash out/ sell my crypto assets to €’s which I have been holding for several years.
I realise for the non-dom status I would need to spend 60 days within the country per year and rent or purchase a property.
My question is would the crypto profits be taxed at 0%? I keep reading conflicting things on different lawyer websites.
How much are you fees for this setup? And annual accounting?
We specialise on the matter!
Crypto disposal is usually taxed at a personal level, if you hold them as a person (see table here) or corporation tax rate of 12.5% only, if a Cyprus Company disposes of them.
The only way to avoid paying the Corporation Tax via Company or Personal Tax (if you sell them as a person) is if you prove that you have inherited them or if you prove that you are not a trader. We can get a tax ruling for this for a fee.
Should you wish more guidance and clarification on the matter we can consult you at €300 + VAT until all your enquiries are resolved.
More on the matter - Read Relevant Articles:
Fees Requested:
If the above fees and explanation is within your budget etc we can arrange a call to determine next steps
At your convenience,
Thanks for your email.
I've been told by another firm that If I'm a long term holder and set up a company in cyprus + not a trader then only the gesy of 2.65% would be applied to the total amount of crypto I cashout.
Yes but to be considered a long trader that is the catch!!! Hence the tax ruling.
The gesy has a ceiling of €4,770 (180,000 x 2.65%) - so not so important really if we talk about big gains.
Looking forward for next steps
Thanks for your reply again.
So for example If I wanted to cashout a large figure like 2-5 million euros in cryptocurrency that I have held for 4ish years.
What would be the best route for this?
I'm just really confused I've been told everything from 0% to 12.5%
Its going to be most likely 12,5%. To be 0% we will need to get it in writing from the Income Tax Office
Would it be possible to arrange a short meeting with you at your offices in Nicosia regarding taxation of cryptocurrencies and what options are there for someone who wishes to sell?
I am available any day from 15:00-19:00, except Tuesdays.
I believe it is easier to schedule a call first and then a meeting. Kindly note as we are getting many internet enquiries which do not result in fees for our firm we tend to charge a fee of €300 + VAT for the consultation - until all your enquiries clear.
If this is ok with you we can proceed accordingly.
Sure, no problem. When is it convenient for you to schedule the call? Please provide me with an IBAN account to send you the payment for the consultation.
Details below
I will be away till the afternoon - tomorrow is better after lunch time or anytime next week.
If you want send me few points for discussion before hand
As discussed:
- Company Formation: €1,600 + VAT (from €1,800 + VAT)
- Nominee Fees (directors, registered office, company secretary): €1,800 + VAT (from €2,000 + VAT)
- Accounting, Audit & Tax - I would not expect you to be charged more than: €1,800 + VAT
Indicative Pricelists as explained over the phone - click here
More information on Crypto Tax Treatment - access to our articles below:
Let me know if you need more assistance
Hope you are doing well. I am emailing you regarding the taxes paid on crypto gains. So, i have been investing in cryptos since 2021(DCA) as an individual investor(not in a company) and i am planning to make around $200k by the end of 2025(i have invested during these 3 years around $20k). Can you please guide me on how to approach this situation and offer me the appropriate services in order to minimize my taxes as much as possible?
Great news. There are several solutions to mitigate your tax exposure which we can discuss in detail at a call.
Our fees for the consultation are €300 + VAT (from €500 + VAT) - we started charging as we get too many responses and we spend too much time on enquiries that do not materialise to business for us.
Upon your acceptance we will guide you for the next steps.
CYAUSE RESPONSE
Company formation: €1,600 + VAT - one off
Tax Advice: Free
Accounting, Audit, etc - depends on how much you use the company - indicative prices here but i would expect you to have a cost of €1,800 + VAT appr including accounting, tax and audit (from experience this is how much we charge our Cypriot clients with similar cases).
More information on Cryptos Tax Treatment - access to our articles below:
Let me know if you need more assistance,
CLIENT RESPONSE
Thank u for finding the time for me.
So for creating a company it will cost me approximately 1,800 plus taxes per year
Plus some extra work if needed.
Does this include a bank account or we have to ad it separately with an extra cost? If yes how much.
Just to know how I would like use my company
Is using the money to invest in real estate mainly,
To be able to use my properties to rent and sell.
And how long we need for the company and bank account to be issued.
Thank u again.
Waiting for your reply
We charge the bank account 1,000 + VAT in local banks but since you live here it is best for you to do it, no?
We can open it for you at €800 + VAT.
If you will mix other activities it is strongly advised to use a different company for asset protection and tax purposes. We can discuss this extensively over the phone if you want.
Timeframes:
- Company Set up: 3 working weeks from day we submit it
- Bank Account: 3 working weeks from day we submit it, but we start gathering documents from engagement to save up time.
So 1,800 plus tax per year
800 plus tax ones
About
(If you will mix other activities it is strongly advised to use a different company for asset protection and tax purposes. We can discuss this extensively over the phone if you want)
If you will have the time I would like to have more details if possible on email and then we can have fix a meeting
If its ok with you.
Dear Mr. xxxx
Nice to e-meet you and thank you for your interest in our services.
We have received your request regarding the formation of a new Cyprus company for which the cost is €1,600 + VAT (including the disbursements).
In addition, please find attached our brochures and let me know if you have any questions so that we can assist you further.
As soon as you approve the above mentioned cost you will receive an email requesting the necessary information and documentation to be provided by your side in order to proceed accordingly with the next steps.
At your disposal,
Thank you for your email.
I’m interested to open a LTD company in Cyprus. I just want to know in the case I will have questions during the procedure, or understanding how to completely abide by the law and be able to pay my taxes to the government will you be able to assist me?
If yes, will there be any extra charges? Or it is included?
I have spoken to Kyriakos yesterday and explained the reason of the company.
Please advise. Best Regards,
Dear Mr.
Please be informed that the financial statements should be prepared for the company where we will be able to take the required steps as accountants and auditors. Of course the assistance for the taxes payments is included. However, the quotation for these services can be given at a later stage, as it is determined based on the volume of the transactions of the company, number of bank accounts and employees etc.
In the meantime, if our correspondence is excessive or if you need consulting services we will issue a small invoice to cover up our time.
Please let me know if the above is sufficient for your questions.
I have questions in order for me to fully understand if it can be done successfully.
Questions
Please find my answers below in red:
At your disposal for any further clarifications.
-Dear Mr.,
Further to my previous email please click here to find our indicative fees. We will be able to provide you with an accurate quotation as soon as we have a better understanding of the required workload from our side.
In addition, as per your discussion with Kyriakos, we need to investigate if your wife is eligible to obtain a non-domiciled status (i.e. she won't have to pay any defence on her income). Hence, please let us know where she has lived the last 20 years (country and year/period) so that we advise you accordingly.
In the meantime, please let me know if you have any further questions regarding our previous discussion.
Thank you for the below.
In regard to my wife. She is from Slovakia. She obtained her Yellow slip in April 2016. Prior to that she was living in Slovakia all her life.
Please note that we got married in 2021 in Cyprus, but she does not have a Cyprus passport, only the yellow slip.
In addition, she has been working in Cyprus since 2016.
Please be informed that based on the information you have provided us your wife is eligible to apply for a non-domiciled status.
The cost of our services is €650 + VAT (from €800 + VAT)
So in order for me to understand correctly. We can do the whole procedure under my wife's name?
And the benefit will be that we don’t need to pay the dividend tax? Only the corporate tax of 12.5% + Gesy?
What about social insurance?
Please find my answers below in blue:
And the benefit will be that we don’t need to pay the dividend tax? Only the corporate tax of 12.5% + Gesy? It doesn't matter if she is director or secretary but if you chose her to be the shareholder then she won't have to pay special defense contribution of her dividends. However the Gesy will be applicable as well as the corporation tax (based on the company's profits).
What about social insurance? This is not related to the non-domiciled status.
Thank you for the bellow.
So then we do it on my wife's name since we can legally avoid paying the special defense contribution on the profits.
In addition you mentioned in previous email that the of our services is €650 + VAT. But for what exactly?
I want the total cost broken down to open the ltd company.
What is the procedure moving forward.
Please find my answers below:
So then we do it on my wife's name since we can legally avoid paying the special defense contribution on the profits. You can avoid paying defence on dividends your wife will receive as shareholder.
In addition you mentioned in previous email that the of our services is €650 + VAT. But for what exactly? This cost concerns the non-domiciled application we will need to follow for your wife.
I want the total cost broken down to open the ltd company. Please find below the cost for the incorporation of the company:
€1,232 + VAT = €1,466 our fees
€368 disbursements
* In case you need speed up process there is an additional cost of €200 (Cyprus Registrar Disbursements)
What is the procedure moving forward. As soon as you accept the above mentioned cost we will send you our invoice which has to be settled prior the provision of this service (as there are disbursements paid etc) and we will ask you to provide us for some required information and documentation (copies of ID, recent utility bills etc) in order to prepare the documentation for the company incorporation.
Feel free to give me a call tomorrow on 22 041 383 to discuss any details etc.
1) I've just moved to Cyprus and I'm looking for an accountant to help with setting up and running my simple one-person IT consultancy business. Can you help with this? For how much?
2) I've read your excellent article about crypto taxation in Cyprus. I've actively traded crypto in 2017. I've kept records and paid relevant taxes in Finland. I have not traded since then but kept a couple of Bitcoins as long term investment. Would selling them fall under PAYE or Capital Tax, what do you think?
Best regards,
Hello and offcourse WELCOME to Cypeus!!!
This is our day to day job.
Shall we arrange a call today afternoon or tomorrow?
Any time that is convenient to you. Between 10 and 11 I have a teleconference.
My local number: xxxxxx. Or we can do a Zoom meeting if that is more convenient to you.
Best regards, xxxx
P.S. today I have an extra meeting from 2pm to 3pm. Perhaps we could talk after that or tomorrow?
Thanks,
Ok, thanks, great!
Dear Mr. David,
As per your discussion with Kyriakos, please find below our quotation:
-Creation of a Cyprus Company: €1,700 + VAT (including the disbursements) One-off
- Tax Rulling for Cryptos: €3,500 + VAT (from €4,500 + VAT) One-off
-Accounting, Audit and Tax Services: Ranges between €2,000 + VAT - €3,000 + VAT Recurring (Annual)
-Non Domiciled Application €600 + VAT (from €800 + VAT) One-off
In addition, please find attached our brochures and let me know if you have any questions.
Hi, We have just come across an article from your website where it mentions you guys assist people with getting a tax ruling for non-taxing crypto gains. Could you please explain a bit more about this or are we able to organise a call to discuss?
We would also like to enquire about the non-dom tax residency program in Cyprus to see what the requirements to apply and maintain this program are, what the tax benefits would be and what would be the best setup for cryptocurrencies and to receive our work income. At the moment my husband has a company in Australia with a business partner, in which he will need to renounce directorship according to our accountant but can continue to be a shareholder. However, to get his income from work low tax or tax-free while we are traveling we want to understand if we choose Cyprus as our tax home what is the best structure to achieve this. How much taxes would we pay in 100K euros a year for example, under the structure recommended? Lastly, we have read for the non-dom we need to stay in Cyprus for at least 60 days a year. Is this the first year only to apply for the program, or is this a requirement to do so every year?
We look forward to hearing from you.
Happy New Years
I have missed your email, it has ended up in spam!!!..... is the enquiry still on?
As requested please find below information:
1. Non Domiciled Person
- Information
- Videos
2. Cyprus Company Incorporation
3. Immigration assistance
Kindly advice next steps
I am a Cypriot self-employed investor in cryptocurrency and stocks and would like to obtain your expert advice on filing annual income tax on the sale of cryptocurrency. My cryptocurrency portfolio consists of a number of positions acquired more than a year ago and the rest of the positions that were accumulated within the third and the fourth quarter of this year. Considering all of the above, kindly provide the answers to the following questions.
Would your firm assist in filing 2024 annual personal income taxes on the cryptocurrency income earned outside Cyprus?Is your firm’s initial consultation on personal income tax filing free? If not, what is the fee and what is the consultation format, i.e. email, personal office visit, What’s Up or face time?
Considering my portfolio as described above and as per your experience in Cyprus crypto taxation, what is the tax rate and under what tax regime will I be taxed on? Shall my income be subject to PAYE level of 20-35%, will I also be liable to pay defense, social insurance and / or Gesy contributions?
What is the current Cyprus tax rate for personal interest earnings?Does my income qualify for any Cypriot tax minimisation regime?
Kindly review the above and revert to me at your earliest convenience. Thank you in advance for your assistance in this matter. Best regards,
We can assist you with all of the below as we have the necessary expertise. Our fees for a consultation are €300 + VAT and they cover several email and telephone calls until your enquiries are resolved.
Thank you for your swift reply. Please advise me on the payment method of €300 + VAT for the consultation fee.
Thank you for your assistance in this matter.
Best regards xxxxx
Greetings Mr. Kyriakos,
I am contacting you for clarifications regarding the article posted at cyprusaccountants.com.cy.
Specifically, this one
As I understand it, what can be regarded as trading is not so straightforward. You need to examine it case by case. However, I would like to ask you to shed some light into a couple of scenarios considering crypto assets, if that of course is okay by you.
Scenario 1 - Having an asset that generates yield, in the same form of the asset itself, then converting that yield into FIAT currency. Is this a taxable event?
Scenario 2 - Using an asset as collateral for a crypto loan. The loan itself is given in the form of a stable coin. Then, converting that stable coin into FIAT currency. Is this a taxable event?
It would be greatly appreciated, if you could give me an answer concerning this.
Charalampos Kyriakou
Your tax enquiries are of a "high level" nature and can be answered following detailed explanation as this specific taxation is a very complex manner.
Our fees for the discussion and answer will be €300 + VAT. In addition, we would strongly advise you to get a tax ruling so that the treatment will be given by the Cyprus Income Tax Office and will be binding (the second part of the scenario is subject to interpretation).
Tax rulings are €3,800 + disbursements (from 4,500 + disbursements) and they include:
- discussion with client
- drafting the enquiry in a specific manner
- filling up the application form
- liaison with Income Tax Office until a response is provided
- liaison with the Income Tax Office after the response is provided, if necessary.
Kindly advice how you would like to proceed.
Thank you for your reply and offer.
Currently I am not in need of a tax ruling. I was researching about this topic and trying to gather as much information as possible. This prompted me to contact you for clarification.
However, I will have that in mind in case I require such a ruling in the future.
Thank you for your reply xxxx
It also applies beforehand. Let me know if you need additional assistant; email me kt@cyprusaccountants.com.cy
If you sell at once it will be considered as a one off transaction by an individual or a company and will not be taxed. If you sell at various intervals it will be considered educated trading and will be taken under Corporation Tax for your Company.
If you did this as a person then it would be taxed under PAYE - which is not advisable as you would reach the high paying tax rate of 35%.
It is best to instruct us to get you a tax ruling so that you will have the Cyprus Income Tax Office Response in writing and binding:
---> then you will know how to act / trade --> sell at once or in intervals.
==> Having said this, if you create a Cyprus company and you become non dom ---> only pay 12.5% max on profits ---> it is totally worth trading of Cryptos under a company freely!!!
==> Or we can create an international company for you with no taxes ==> 100% tax free but note: Even the UAE is introducing taxes!!! 9% + Banking Issues
==> Cyprus Company works fine. We can facilitate any need.
Thank you, Kyriakos
Email me kt@cyprusaccountants.com.cy
Ok we will try to do something more specific but kindly note that it is best to obtain a tax ruling as the taxation per individual varies a lot; since crypto trading is subject to interpretation the video will give you guidance but not tax advice as your personal trades and circumstances must be taken into consideration to form a view as to how you will be taxed. Is this clear?
The second; as from crypto to crypto are not considered reaslised gains
Only transactions from crypto to euro taxed
Yes that is correct
No you do not have to pay social insurance as the proceeds are not considered salaried income
Usage of Binance card, purchase of tangible asset etc
The method of buying something is not so relevant really. What is relevant is the soucre of funds and if these funds have been taxed. If you are buying a house or a car with Cryptos or any other banking solutions and these funds are not taxed, in the event of an investigation the Income Tax Office will taxed you on undeclared income ion the amount of the house at the year of purchase to date + a flat penalty + cumulative fines. The total tax with the cumulative penalties to be paid could equal the house cost! Depending when the investigation will take place - how many years back the penalty and fines will accrue!
This is a very good question. What would you do if you had increases in your share value of stocks?
Would you declare them in your tax return? This question is better to be answered by your local tax expert as the treatment varies from country to country.
In Cyprus I believe there is no need to declare it unless you converted it to FIAT but these cases have not yet been examined by the Cyprus Income Tax Office - so I have some reservation with regards this answer!
My ta residency is currently Spain, but I want to leave the country.
——————
Fees Requested
CYAUSE Team
Dear Kyriakos I hope this email finds you well. My name is xxxx, and I recently relocated from the UK to Cyprus. As I navigate the tax implications of this move, I find myself in need of expert advice regarding the transfer of tokens from my personal ownership to a Cypriot company that I own. I understand the importance of ensuring compliance with relevant regulations and seeking the most conservative and safest approach in such matters. Therefore, I have outlined a few specific questions below: 1. What is the most conservative and safest way to transfer tokens from my personal ownership to a Cypriot company? Specifically, what documents and records must I create to facilitate this transfer? 2. Can you assist me in arranging the necessary documentation and processes to ensure legal compliance throughout this transfer? 3. I currently own a Cypriot company that I utilise for business purposes unrelated to cryptocurrency. Would it be advisable to transfer the tokens to this existing company, or should I consider establishing a separate entity specifically for this purpose? My concern lies in avoiding any potential risks associated with jeopardising my Cypriot business bank account, i.e. I wouldn't want them to close this account because I have sold and tried to deposit fiat into it. 4. In the event that I sell the cryptocurrency after transferring it to my Cypriot company and pay the corresponding taxes to the Cypriot tax authorities, would I encounter any restrictions when depositing the funds into a Cypriot bank account? If so, what would be the most efficient way to obtain fiat currency? 5. Additionally, I have friends and family in the UK who are interested in establishing a company outside the UK. Would relocating to Cyprus and becoming non-tax residents in the UK potentially reduce their tax exposure, or are there other considerations they should be aware of? What is the best advice you could offer if they 1) wanted to remain in the Uk and 2) If they were willing to relocate to Cyprus? I greatly appreciate your expertise and guidance in addressing these queries. Your assistance in navigating the complexities of these matters would be invaluable to me. Thank you for considering my questions, and I look forward to your prompt response. Please don't hesitate to give me a call if you're more available to discuss. I'm always happy to chat!
Rulings, disposals, wallet gains, mining income and the corporate structure around them — and the statutory audit that follows, from the same firm.
Call us today: +357 22 336 309