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As of yesterday 30/10/2025, six bills on tax reform, including the proposed changes to Cyprus crypto taxation, have been presented to the House of Representatives. These bills were approved by the Council of Ministers on Wednesday. They will become law once passed by the Cyprus parliamentand will be applicable for the year 2026 onwards.
We summarise below the main law provisions affecting the Crypto assets taxation:
- 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).
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
