Are Cryptos Taxed in Cyprus?

Yes, Cryptos are taxed in Cyprus both personally owned and corporately owned.

Cryptos are taxed like any other income here in Cyprus. So whether you are an individual who trades cryptos or a company who trades cryptos, they will be taxed normally at the applicable tax rates.

How are Individuals taxed?

If you are an individual, the first 22,000 of taxable income will be tax-free, then you will be taxed at a flat rate of 8%. Crypto profits prior to 2026 will be taxed at the personal tax rate of 20%, 25%, 30%, and 35% accordingly.

How are Companies taxed?

If you are trading via a company, you will also be taxed at the 8% flat special crypto corporation tax rate. Crypto profits prior to 2026 will be taxed at the corporate tax rate of 12.5% accordingly and will be subject to special defence tax if applicable.

Trading of Financial Products bundled with underltying crypto assets

If you are dealing with financial products whether you are an individual or a company, and these products are tied in with cryptos, because cryptos are taxed, these financial products will also be taxed at the applicable crypto tax rates for the specific years (reminder that in 2026 there is a different tax treatment of Cryptos than for years prior to and including 2025).

More detail on how 2026 Crypto Profits are Taxes

• 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).                  

Useful Resources

Cryptocurrency Articles & Resources

Cyprus Crypto Tax – How Cryptocurrency is Taxed in Cyprus
https://www.cyprusaccountants.com.cy/Taxation/Cyprus-Crypto-Tax
Dedicated service page explaining reporting rules, tax treatment, and planning strategies for crypto investors in Cyprus.

Understanding Cryptocurrency Taxation in Cyprus: A Comprehensive Guide
https://cyprusaccountants.com.cy/Knowledge-Hub/Articles/understanding-cryptocurrency-taxation-in-cyprus-a-comprehensive-guide
Explains how cryptocurrency transactions are taxed in Cyprus for individuals and companies, including corporate tax treatment and deductions.

Cyprus Cryptocurrency License – Conditions and Application Procedure Explained

https://cyprusaccountants.com.cy/Knowledge-Hub/Articles/cyprus-cryptocurrency-license-conditions-and-application-procedure-explained
Detailed guide on obtaining a cryptocurrency license through CySEC and the regulatory requirements.

Bitcoin and Crypto Taxation in Cyprus – Private Session
https://cyprusaccountants.com.cy/Knowledge-Hub/Articles/bitcoin-and-crypto-taxation-in-cyprus-private-session
Summary of a presentation to investors on the taxation of Bitcoin and crypto assets in Cyprus.

MiCA & CASP – EU License for Crypto Brokers, Banks and EMIs
https://cyprusaccountants.com.cy/Knowledge-Hub/Blog/mica-casp-eu-license-for-crypto-brokers-banks-and-emis-addressing-the-elephant-in-the-room

Cyprus Crypto Tax – Increases in Wallet Gains: Are They Taxed?
https://cyprusaccountants.com.cy/Knowledge-Hub/Blog/cyprus-crypto-tax-increases-in-wallet-gains-are-they-taxed-how
Explains the difference between realised and unrealised crypto gains in Cyprus tax law. (Cyprus Accountants)

Conclusion

Cyprus offers a highly attractive environment for crypto traders, combining favorable taxation with an exceptional quality of life. As of 2026, cryptocurrency activities can benefit from a preferential tax framework, with profits taxed at an effective Personal or Corporation Tax Rate of only around 8%, making it one of the most competitive jurisdictions in the world for digital asset trading.

Beyond the legal framework supporting crypto traders taxation, Cyprus provides a compelling lifestyle advantage: year-round sunshine, a rich cultural heritage, and renowned Mediterranean cuisine create an ideal living environment. When these lifestyle benefits are paired with relatively low operating and living costs compared to other EU and non EU jurisdictions, Cyprus clearly stands out as a top-tier destination for crypto traders seeking both financial efficiency and a high standard of living.

CYAUSE Audit Services is an Audit & Assurance firm with offices in Cyprus and the UAE regulated by the UK ICAEW, International ACCA and the Cyprus ICPAC. 

Our firm has extensive knowledge and experience in local tax legislations, relocation consultation, international tax planning solutions and licensing of investment firms, funds and insurance agents / brokers. Our routine day to day services include accounting, audit, tax and advisory services to international businesses interested in relocating or establishing presence to Cyprus.

Our Partnership with  BKR International  (a USA 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.

Learn More about Cyprus Corporate Environment

Information about CYAUSE Audit Services and the Cyprus Corporate & Tax System can be obtained from our Website and our YouTube channel which provides valuable information about the Corporate & Tax Environment of Cyprus.