As of 1 January 2026, Cyprus has a special tax regime for profits from the disposal of cryptoassets. The rate is 8% for transactions covered by this regime.
The regime applies, among others, to individuals who are Cyprus tax residents and to Cyprus companies. The treatment of non-residents depends on the circumstances of the transaction and whether they have business activity or a permanent establishment in Cyprus.
Which transactions are covered?
A disposal of a cryptoasset is not limited to selling it for euros. A taxable event may also arise when one cryptoasset is exchanged for another or when cryptocurrency is used to pay for goods or services. Therefore, not transferring funds to a bank account does not, by itself, mean that no taxable transaction has taken place.
How is the gain calculated?
The acquisition cost of the asset and expenses directly related to the transaction are deducted from the disposal proceeds. Losses can be offset only against gains from cryptoasset transactions in the same tax year; they cannot be carried forward.
Mining and staking
The special 8% regime does not apply to cryptoassets received through mining; this income is taxed under the general rules. Staking rewards are also treated separately and taxed under the general rules for income.
Before calculating the tax, it is important to establish your tax residency, identify the type of transaction and the origin of the asset, and keep evidence of acquisition costs and expenses. LFT Advisors can help assess the tax treatment and accounting records for cryptoasset transactions in Cyprus.
