Quick Answer
From January 2026, Cyprus taxes cryptocurrency disposal gains at a flat 8% rate under Article 20E of the Income Tax Law. This applies to selling, swapping or spending crypto. Simply holding cryptocurrency is not a taxable event. Losses from crypto disposals cannot be offset against other income. Before 2026, crypto gains were not taxed in Cyprus.
Cyprus introduced a flat 8% tax on cryptocurrency gains from January 2026 under Article 20E of the Income Tax Law. This applies to all Cyprus tax residents disposing of cryptocurrency - including Bitcoin, Ethereum, and other digital assets. The 8% rate applies to net gains (proceeds minus cost basis). Simply holding crypto, transferring between your own wallets, or receiving crypto as a gift are not taxable events. Note that crypto gains in Cyprus are taxed separately from other income - the progressive income tax brackets do not apply.