Cyprus crypto tax rate: a flat 8 percent from 2026
A brand new rule with a harsh loss treatment that nobody mentions.
Last verified 2026-10-22Next review 2027-01-222 official sources
Whether Cyprus works for you depends on how you earnTalk it through
Cyprus crypto tax rate is a flat 8% on disposals from 2026. It sits in its own section of the Income Tax Law, is kept separate from everything else you earn, and comes with a loss rule that is considerably harsher than the headline rate suggests.
Cyprus crypto tax rate: what triggers it
A disposal, which the law reads broadly: selling, swapping one crypto-asset for another, gifting, or using crypto as payment for something. A swap is a disposal, so moving between assets is a taxable event even though no euros were involved.
Crypto-asset is defined by reference to the EU MiCA Regulation rather than left to interpretation, which is unusually tidy for a new rule.
The loss rule
Losses can only be set against crypto gains of the same year. There is no carry-forward at all.
Put next to the rest of the system, that is strict. A Cyprus company carries ordinary tax losses forward for seven years. A crypto loss in December is worth nothing in January. Anyone with a volatile position should be looking at which calendar year their realisations land in, because the year boundary is where the money is.
What 8% sits next to
| Gain | Cyprus treatment |
|---|---|
| Crypto disposal | flat 8% |
| Securities, other than Cyprus property-rich shares | exempt |
| Cyprus immovable property | 20% capital gains tax |
| Dividends | exempt from income tax |
So crypto is now treated worse than shares and better than Cyprus property. Before 2026 its treatment was argued rather than written, and an 8% rule you can read is worth something even at 8%.
Non-dom status does nothing here
The 8% is income tax, not the Special Defence Contribution. Non-dom status switches off the defence contribution on dividends, interest and rent. It does not reach this, exactly as it does not reach the 20% on property.
That makes crypto one of the two places where people expect the regime to help and it does not.
Mining, and what is not settled
Mining is excluded from this treatment, which leaves it to the ordinary rules: likely business income if it is run as a business. The law does not spell out the boundary, and we are not going to invent one.
The section as enacted is in Law 244(I)/2025, which inserts section 20E into the Income Tax Law.
Common questions
- What is the Cyprus crypto tax rate?
- A flat 8% on gains from disposing of crypto-assets, from 2026, under the new section 20E of the Income Tax Law. It is kept separate from other income.
- What counts as a disposal?
- Selling, swapping, gifting or using crypto-assets as payment. Crypto-asset is defined by reference to the EU MiCA Regulation.
- How are losses treated?
- Only against crypto gains of the same year. There is no carry-forward, which is stricter than the seven years a company gets for ordinary losses.
- Is mining covered?
- No. Mining is excluded from this treatment.
Whether Cyprus works for you depends on how you earn
Where you live is only half of it. We can walk through your position with you, including the cases where Cyprus tax residency does not give the result people expect. This is general information, not tax advice for your circumstances.
Sources
Every legal, fee and procedural statement on this page is taken from the sources below and was checked on 2026-10-22. Where they change, this page changes.
- Law 244(I)/2025 amending the Income Tax Law, Official Gazette No. 5070 of 31 December 2025 (cylaw.org) — 15% corporate tax, the 2026 60-day rule, personal tax bands and the 8% crypto rate, from 1 January 2026
- Income Tax Law 118(I)/2002, consolidated text (cylaw.org) — Tax residency (section 2), dividend exemption (section 8(20)), IP Box (section 9(1)(κ)) and rates
Related
This page is general information about Cyprus rules as published by the authorities named above. It is not legal or tax advice for your circumstances, and immigration outcomes depend on your nationality, documents and individual case. See our legal and tax information disclaimer.