How crypto tax works in Cyprus
Article 20E of the Income Tax Law taxes net profits from crypto-asset disposals — sales, swaps, payments, gifts, redemptions — at a flat 8% for resident individuals and companies from January 2026.
Crypto-asset follows MiCA definitions covering coins, ARTs, EMTs, and many NFTs, while security tokens keep MiFID treatment and pre-2026 practice governs earlier disposals regardless of purchase date.
Losses ring-fence to crypto gains with disputed carryforward length, staking and airdrop receipts arrive as income first, and non-dom status shelters dividends and interest but not Article 20E.
Tax rates at a glance
- Crypto gains tax
- 8%
- Effective from
- Jan 2026
- Loss offset
- Ring-fenced
- Staking rewards
- Progressive
- Security tokens
- MiFID rules
- Non-dom effect
- None on 20E
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
Long-term holdersActive tradersFund managersExpatsFounders
Watch out for
- No grandfathering means pre-2026 purchases sold in 2026 fall fully inside 8%, so historic cost records must survive years of holding.
- Loss carryforward length is genuinely disputed between commentaries, so large loss positions need Tax Department confirmation rather than article reliance.
- The EUR 22,000 personal allowance does not touch Article 20E, which surprises newcomers modelling all-in Cypriot liability.
- DeFi liquidity events realise both legs at fair value, which multiplies taxable disposals inside strategies marketed as passive.
Frequently asked questions
How is crypto taxed in Cyprus in 2026?
Disposal profits face a flat 8% under Article 20E from January 2026 for residents, with MiCA-aligned definitions. Staking and airdrop receipts are income first, then 8% on later disposal gains.
Do crypto losses carry forward in Cyprus?
Losses ring-fence to crypto gains, but carryforward length is disputed between sources. Confirm current Tax Department practice before relying on multi-year use.
Does non-dom status exempt crypto in Cyprus?
No. Non-dom shelters SDC on dividends, interest, and rents, but Article 20E income tax on crypto disposals applies regardless.