How much is crypto tax in Cyprus from 2026?

Profits of any person from the disposal of crypto-assets are taxed at a flat 8% from 1 January 2026, under Article 20E of the Income Tax Law. The profit is taxed separately and is not added to your other income.

What counts as a crypto disposal in Cyprus?

Selling crypto for euro or another currency, swapping one crypto for another, using crypto to pay for goods or services, and giving crypto away as a gift.

Can crypto losses be offset in Cyprus?

Crypto losses can only be set off against crypto gains in the same tax year. Unused losses cannot be carried forward, used against other income or group-relieved.

Does the 8% rate apply to crypto mining?

No. The 8% rate does not apply to crypto obtained through mining, which is taxed under the normal income tax rules.

When do crypto exchanges report to the Cyprus Tax Department under DAC8?

Reporting crypto-asset service providers report 2026 activity to the Tax Department by 30 June 2027.

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Cyprus crypto taxes: a plain-English guide (2026)

General information, not tax advice. The crypto rules are new and the Tax Department may still issue guidance. Always check your own situation with a licensed professional before you buy, sell or report crypto.

1. The flat 8% tax on crypto gains (from 1 January 2026)

The 2026 tax reform added Article 20E to the Income Tax Law. Profits of any person (individuals and companies) from the disposal of crypto-assets are taxed at a flat 8%.
It applies to profits from 1 January 2026 (tax year 2026 onwards). The reform laws were published in the Official Gazette on 31 December 2025.
The 8% profit is taxed separately. It is not added to your other income, so it does not push your salary into a higher band.
"Crypto-assets" follow the EU MiCA definition (Regulation (EU) 2023/1114).

2. What counts as a disposal

Selling crypto for euro or another currency.
Swapping one crypto for another (for example BTC for ETH or a stablecoin).
Using crypto to pay for goods or services.
Giving crypto away as a gift (donation).

Example: you bought crypto for €10,000 and sell it in 2026 for €25,000. The profit is €15,000 and the tax is 8%, so €1,200. Keep records of costs, dates and euro values for every trade.

3. Losses

Crypto losses can only be set off against crypto gains in the same tax year.
Unused crypto losses cannot be carried forward to later years, cannot be used against other income, and cannot be group-relieved to another company.

4. Mining, staking and other crypto income

The 8% rate does not apply to crypto obtained through mining. Mining is taxed under the normal income tax rules.
Any crypto profit outside the 8% rule is taxed under the normal rules (for individuals, the personal income tax bands; for companies, corporate tax, which is 15% from 2026).
Staking rewards, DeFi yield and airdrops are not specifically covered by the new article. Their treatment is to confirm with the Tax Department or a professional.

5. Before 2026

Before 1 January 2026 Cyprus had no specific crypto tax rule. Depending on the facts, gains were treated as trading income at normal rates or as capital in nature (often not taxed). Disposals before 2026 stay under the old rules, so keep pre-2026 and post-2026 records separate.

6. VAT

Exchanging crypto for ordinary currency (and back) is generally exempt from VAT as a financial service, following the EU Court of Justice Hedqvist case (C-264/14). Fees for other crypto services (custody, advice, platforms) may be treated differently.

7. Reporting: DAC8 / CARF

Cyprus brought the EU DAC8 directive into law with Law 38(I)/2026, applying from 1 January 2026.
Crypto exchanges and other reporting crypto-asset service providers collect users' tax residence details and transaction data. They report 2026 activity to the Tax Department by 30 June 2027, and the information is shared with other EU tax authorities by 30 September 2027.
In practice this means tax authorities will see your exchange activity, so declare it correctly.

8. Non-residents and non-doms

Cyprus tax residents are taxed on worldwide income, including crypto gains on foreign exchanges (double tax treaties may give relief).
Non-residents are taxed only on Cyprus-source income. Whether a crypto gain has a Cyprus source depends on the facts.
The 8% is income tax, not Special Defence Contribution, so the non-dom exemption from SDC does not remove it.
Whether the GHS (General Health System) contribution applies to 8% crypto gains is to confirm.

Need help with your situation?

Use the enquiry chatbot on our homepage to be matched, free, with an independent licensed professional (accountant or lawyer). Cyprus Tax Connect does not give tax, legal or investment advice. See our legal disclosure and privacy notice.

Related guides

See also our Cyprus property taxes 2026 guide, or go back to the Cyprus Tax Connect homepage for company formation, non-dom and tax residency questions. See also the moving to Cyprus guide, the Cyprus company setup guide and the Cyprus income tax calculator 2026.

Sources

Last reviewed 15 October 2026.