Cyprus Crypto Tax

Position your digital assets in the EU’s most advanced crypto-tax jurisdiction. Fully synchronized with the December 22, 2025, legislative updates and MiCA regulation.

8% Flat Tax on Realized Crypto Gains for active traders
0% Tax on Dividends for Non-Doms & “Hodlers”
Fully MiCA Compliant Framework for EU Legal Certainty

The 2026 Crypto Framework: At a Glance

Following landmark legislation, Cyprus has introduced a dedicated 8% flat tax on crypto-asset gains, effective January 1, 2026. This new framework bypasses complex progressive income tax bands, providing a clear and competitive path for both private investors and crypto-native corporations.

Feature	Private Individual	Cyprus Company (LTD)
Gains Tax Rate	8% Flat	8% Flat
Loss Treatment	Same-year offset only	Same-year offset only
Corporate Tax	N/A	8% for active crypto traders, 0% for “hodlers”
Dividends	0% (Non-Dom)	0% (To Parent/Holding)
Mining/Staking	Progressive (0-35%)	15% (Business Income)

The 8% Flat Tax: What Counts as a "Disposal"?

Under the 2026 law, the 8% flat rate is triggered by a “disposal” event. This includes:

Crypto-to-Fiat: Selling Bitcoin, Ethereum, or altcoins for EUR/USD.
Crypto-to-Crypto: Trading one token for another (e.g., BTC to USDT).
Payment for Goods: Using crypto to purchase property or services.
Redemptions: Converting units in a collective investment scheme into crypto-assets.

Crucial Rule on Losses: Crypto losses can only be offset against crypto gains within the same tax year. There is no carry-forward of crypto losses to future years.

Is Cyprus crypto tax-free?

Cyprus is not “tax-free” for crypto, but it offers one of the lowest effective burdens in the EU.

While the new 8% rate applies to realized gains from 2026 onwards, Cyprus residents with “Non-Dom” status can still receive dividends from crypto-trading companies with 0% tax, making the total “exit” from a crypto project extremely efficient.

Pre-2026: Gains are often treated as tax-free capital gains if they aren’t part of a “trade.”
Post-2026: A flat 8% applies to all disposals (Sales, Swaps, Payments).
Mining & Staking: Usually classified as active business income, taxed at the standard corporate rate (15% from 2026) or personal income rates, rather than the 8% disposal rate.

Why Cyprus is the Best EU Hub for Crypto Founders

Non-Domicile (Non-Dom) Exemption
If you are an international crypto investor moving to Cyprus, you can qualify for Non-Dom Status. This grants you a 0% tax on dividends and interest for 17 years. You pay 8% at the company level on trading gains, and 0% when you pay those profits out to yourself as dividends
MiCA Compliance & Legal Certainty
The 2026 reform directly integrates EU Regulation 2023/1114 (MiCA) definitions. Your business is not just tax-efficient; it is fully compliant with European regulatory standards, easing bank onboarding and VC investment.
The 15% Corporate Shield
While the standard corporate tax rose to 15% in 2026, Article 20E ensures that crypto gains are taxed separately at 8% and are not added to the company’s general taxable income. This protects your core trading profits from the higher CIT rate.

Banking & Cashing Out: The Real-World Challenge

The biggest bottleneck in Cyprus isn’t the tax; it’s the banking.

Cypriot banks are conservative and require a compliance-first approach to process significant crypto-related transactions. To cash out six or seven figures safely:

Use a Regulated Gateway: Always transact through a CySEC-registered Crypto-Asset Service Provider (CASP) or a Tier-1 exchange (e.g., Coinbase, Kraken) that provides a clear, auditable transaction history.
Build a “Dual-Banking” Bridge: Do not send funds directly from a decentralized exchange (DEX) or a “mixer” to a local bank. Use a reputable Electronic Money Institution (EMI) like Wise or Revolut as an intermediary to show a clear “Fiat-to-Fiat” transfer.
Document Your Source of Wealth: Be prepared to prove the origin of your funds. Banks will ask for the “on-chain” history showing how your initial investment grew to its current value.

Can you buy property in Cyprus with Cryptocurrency?

Yes, buying property in Cyprus with crypto is legal and increasingly common.

Many top-tier developers now accept Bitcoin (BTC), Ethereum (ETH), and USDT. The transaction is typically structured via a specialized escrow or a lawyer-managed OTC desk to ensure the Title Deeds are issued in Euros, complying with the Land Registry requirements.

The Process: You transfer crypto to a verified wallet; the developer receives Euros; the contract is registered normally.
The Benefit: No international wire transfer delays or high FX fees.

How We Help You Optimize Your Crypto Wealth

1. Company Formation & CASP Setup

We register your Cyprus LTD and assist with Crypto-Asset Service Provider (CASP) registration, ensuring your business meets the substance requirements banks demand in 2026.

2. Tax Residency & Non-Dom Application

We manage your 60-Day Rule residency application to unlock the 0% dividend tax, protecting your global wealth from high-tax jurisdictions.

3. Staking & Mining Structuring

Because mining and validation are taxed as business income (15% for companies), we help you structure these activities through Holding Companies or using Notional Interest Deductions (NID) to lower the effective rate.

Frequently Asked Questions about Crypto Tax in Cyprus

Is Cyprus good for crypto?

Absolutely. Beyond the 8% tax, Cyprus is a MiCA-compliant jurisdiction with a growing ecosystem of developers and VCs. Its “Non-Dom” regime is the primary draw for founders who want to live a high-quality Mediterranean lifestyle while paying 0% tax on their company dividends.

How is crypto taxed if I trade through a company?

From 2026, the 8% flat rate applies to the company’s crypto disposal profits. This income is kept separate from the standard 15% corporate tax. This allows for “Internal Capital Recycling”, you pay the 8% and keep the rest in the company to reinvest in other assets or your own startup.

What counts as a "disposal" for the 8% tax?

A disposal includes: selling crypto for cash (EUR/USD), swapping one coin for another (e.g., BTC to ETH), using crypto to pay for a car or rent, and even gifting crypto. Each of these events triggers the 8% tax on the realized gain at that moment.

Can I offset my crypto losses?

You can offset crypto losses against crypto gains, but only within the same tax year. You cannot carry these losses forward to next year, and you cannot use crypto losses to reduce the tax on your salary or other business income.

What is the tax on crypto mining?

Mining and validation (staking rewards) are generally seen as “active service income.” They do not fall under the 8% disposal tax. Instead, they are taxed as business income (15% for companies) or at your progressive personal income tax rates.

Do I pay 8% Crypto Tax as a NON-DOM?

Yes. The 8% flat tax applies to the gains themselves. However, the resulting profit can be distributed to you as a dividend with 0% further tax, whereas a Cypriot resident would pay an additional 5%.

What happens if I hold crypto for the long term?

The 2026 law targets “disposals.” If you simply hold (HODL) and do not sell, exchange, or spend the assets, no tax is triggered. Cyprus does not have a wealth tax.