Cyprus Cypto Tax Regulations - 2026

Following the 2026 tax reform, Cyprus becomes one of the few countries in the world with a clear Crypto Tax Framework. We summarise below the main law provisions affecting the Crypto assets taxation:

• Tax Rate:
  Profits from selling, donating, exchanging, or spending cryptocurrency will be taxed at a flat 8% rate for both physical and legal persons (companies).

• Losses:
  Crypto losses can only offset crypto gains within the same tax year. They cannot be carried forward or used against other types of income.

• Definition:
  “Crypto-assets” are defined as per EU Regulation 2023/1114 (MiCA) — essentially, digital assets whose value comes from their market value.

• What counts as a “disposal”:
  Selling crypto, giving it away, swapping it for another crypto, or using it to pay for goods/services all count as “disposals” that trigger tax.

• Mining exception:
  This special crypto tax does not apply to crypto obtained through mining — those profits are taxed under the general income tax rules instead.

• Fallback rule:
  Any crypto-related profit not covered by this article is taxed under the normal provisions of Cypriot tax law (Parts III & V).

Read / Watch our latest articles on Cyprus Crypto Tax

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 4 years we have obtained a deep knowledge on the matter and obtained tens of tax rulings affecting both companies and individuals. Our frequent correspondence with the 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 are in relation to tax years 2025 and before as 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, treatment is clear and widely understood.

Articles 

We summarise below some of the articles we have written over the years affecting the crypto tax in Cyprus:

From 2026

Cyprus Crypto Tax Guide 2026: How the 8% Rule Works in...

Cyprus Tax Reform 2026 | Full Guide for Individuals...

Prior to 2026 Tax Reform