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.
Rulings, disposals, wallet gains, mining income and the corporate structure around them — and the statutory audit that follows, from the same firm.
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