Quick Answer

Cyprus treats cryptocurrency trading profits as capital gains, which are exempt from CGT when not derived from immovable property in Cyprus. This means most crypto trading profits are tax-free for Cyprus residents. Professional traders may be subject to income tax. Non-Dom residents are also exempt from the 17% SDC on crypto dividends.

Key Facts 2026

CGT on crypto trading (individuals)0% (no specific crypto CGT legislation)
CGT under Non-Dom0% on all capital disposals including crypto
Corporate crypto income15% corporate tax (standard rate)
Staking rewardsNo specific law - likely income if regular/professional
Mining incomeBusiness income - subject to corporate or income tax
NFT salesGenerally 0% CGT (treated as securities disposal)
VAT on crypto exchanges and transactions0% (exempt as financial service)
VASP registrationRequired for businesses offering crypto services in Cyprus

Crypto Tax in Cyprus: The Complete 2026 Guide

Cyprus introduced a flat 8% tax on cryptocurrency gains effective January 1, 2026. Here is what it means for residents, non-dom holders, and investors.

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Crypto Tax in Cyprus 2026: 8% Flat Rate on Crypto Assets - visual guide for entrepreneurs and expats relocating to Cyprus
Crypto Tax in Cyprus 2026: 8% Flat Rate on Crypto Assets - illustrated overview for expats and entrepreneurs considering Cyprus
Crypto Tax in Cyprus 2026: 8% Flat Rate on Crypto Assets - infographic with key data and step-by-step breakdown
Crypto Tax in Cyprus 2026: 8% Flat Rate on Crypto Assets - data infographic for expats and entrepreneurs relocating to Cyprus

Frequently Asked Questions

What is the crypto tax rate in Cyprus in 2026?
Cyprus applies an 8% flat tax on gains from the disposal of crypto-assets from January 1, 2026 onwards. This is a dedicated rate introduced under Article 20E of the Income Tax Law as part of the 2026 Cyprus tax reform.
Was crypto taxed in Cyprus before 2026?
Before 2026, cryptocurrency gains in Cyprus were generally not taxed. They fell under the capital gains exemption, which excludes gains on securities. The 2026 reform created a specific crypto tax framework at 8%.
Does Non-Dom status exempt me from crypto tax in Cyprus?
No. Non-Dom status does not exempt you from the 8% crypto gains tax. It exempts you from Special Defence Contribution (SDC) on dividends and interest, but the crypto tax is an income tax provision that applies to all Cyprus tax residents regardless of domicile status.
Is swapping one cryptocurrency for another taxable in Cyprus?
Yes. Under the 2026 crypto tax rules, exchanging one cryptocurrency for another is treated as a disposal event and any resulting gain is subject to the 8% flat tax. The gain is calculated based on the market value of the crypto received at the time of the swap minus your cost basis in the crypto disposed of.
Can I offset crypto losses against other income in Cyprus?
No. Crypto losses can only offset other crypto gains in the same tax year. They cannot be used to reduce salary, business income, or other categories of income.
How do I report my cryptocurrency gains in Cyprus?
Report crypto gains in your annual income tax return (IR1 for individuals, IR4 for companies) filed by July 31 of the following year. Include total proceeds, cost basis, and net gain or loss. The Tax Department may issue further guidance on the required documentation format.
Is crypto mining income taxed the same way in Cyprus?
Crypto mining and staking rewards are likely treated as ordinary income subject to the progressive income tax rates (0% to 35%), not the 8% disposal rate. The exact treatment is not yet fully clarified for 2026 and professional tax advice is recommended.
Is simply holding cryptocurrency taxable in Cyprus?
No. Simply holding cryptocurrency is not a taxable event in Cyprus. Tax is only triggered when you dispose of crypto — sell it, exchange it, spend it, or transfer ownership to another person.

Sources

Cyprus Tax Department - Income Tax Law Amendment 2026 (Article 20E). Cyprus Bar Association guidance on crypto-asset taxation. Updated: April 2026.

Calculate your exact liability with our Cyprus Crypto Tax Calculator. Enter your cost basis and sale proceeds to see the 8% flat rate tax, net proceeds, and a breakdown of which disposal events are and are not taxable.

Frequently Asked Questions

What is the crypto tax rate in Cyprus after the 2026 reform?

The 2026 Cyprus tax reform introduced an 8% flat capital gains tax on gains from the disposal of crypto-assets (Bitcoin, Ethereum, altcoins, NFTs, tokens). This replaced the previous treatment where crypto gains generally fell outside the formal CGT framework and were not specifically taxable.

The 8% rate applies to net gains (sale proceeds minus acquisition cost and allowable expenses). Losses can be offset against gains in the same year but cannot be carried forward. Non-dom status does not exempt crypto gains - the 8% applies to all Cyprus tax residents. Compare: 0% CGT still applies to gains from shares and securities (stocks, ETFs, bonds), which remain fully exempt under the unchanged pre-reform rules.

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