2025 Tax Reform - Suggested Tax Treatment on Cyprus Crypto Tax

8% for both Individuals and Companies

As of yesterday 30/10/2025, six bills on tax reform, including the proposed changes to Cyprus crypto taxation, have been presented to the House of Representatives. These bills were approved by the Council of Ministers on Wednesday. They will become law once passed by the Cyprus parliament and will be applicable for the year 2026 onwards.

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).

CYAUSE Audit Services is an Audit & Assurance firm with offices in Nicosia and Limassol in Cyprus, regulated by the UK ICAEW, International ACCA and the Cyprus ICPAC assisting individuals and corporations with their crypto positions. Our firm has extensive knowledge and experience in the taxation of crypto currencies and their statutory audit in our  capacity as tax experts and business advisers. 

Our Partnership with  BKR International  ( aUSA association ranked number 10 in the world), ACCACE Circle (European Network) and 3E Accounting International, a Hong Kong Network, ensures that we are wired and closely connected in all jurisdictions, getting the latest corporate and tax news ensuring our tax planning is accurate and validated before finalisation. Being part of international networks ensures seamless collaboration with overseas experts and access to fast and accurate information on overseas tax and corporate legislations.

Feel free to contact us at enquiries@cyprusaccountants.com.cy or call us at +357 99 428 543.

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