8% Crypto Tax Regime
Cyprus has introduced a flat 8% tax rate on gains from the disposal of crypto-assets, effective 1 January 2026 under Article 20E of the Income Tax Law. This framework is designed to position Cyprus as a competitive EU jurisdiction for digital asset activity while maintaining regulatory compliance and transparency.
The 8% rate applies equally to both individuals and companies on profits from the disposal of MiCA-defined crypto-assets (including Bitcoin, Ethereum, stablecoins, and utility tokens). However, the overall tax picture differs significantly depending on whether activity is conducted at the personal or corporate level — for example, mining and staking income fall outside the 8% regime and are taxed at general income tax rates.