Crypto Tax in Cyprus in 2026: the 8% Rate on Gains, Who Pays It and How to Declare It

If you live in Cyprus and make money on crypto, gains you realise from 1 January 2026 are taxed at a flat 8%. The rate applies when you sell, swap, give away or spend crypto-assets, whether you trade every day or hold for years, and you declare the 2026 gains on your tax return due by 31 July 2027.

The 8% rate is part of the tax reform that Parliament passed on 22 December 2025 and that was published in the Official Gazette on 31 December 2025. Below we explain what is taxed, what is not, how the new EU reporting rules work and what to keep for your return. This is general information, not tax advice: crypto cases vary a lot, so speak to a Cyprus accountant before you file.

What does the 8% crypto tax cover?

The reform added a specific rule to the Income Tax Law for crypto-assets, which are defined by reference to the EU's Markets in Crypto-Assets Regulation (MiCA, Regulation 2023/1114). Under the new law, gains made by any person, individual or company, are taxed at 8% when they come from:

Three points matter in practice:

• Trading or investing makes no difference. EY notes that the tax applies regardless of whether the gain is of a trading or capital nature. A day trader and a long-term holder pay the same 8% on these disposals.
• It is a separate flat rate. Crypto gains are taxed at 8% on their own rather than being added to your salary or pension on the normal 0% to 35% bands described in our 2026 tax reform guide.
• Only realised gains are taxed. There is no annual tax on the paper value of coins you still hold. Moving coins between your own wallets or accounts is not a sale.

The gain is broadly what you received (or the value of what you received) minus what you paid for the asset and the direct costs of buying and selling it, such as exchange and network fees. Law firm Nikita & Partners notes there is no grandfathering: if you bought before 2026 and sell after 1 January 2026, the gain is measured from your original cost, not from the value on 1 January 2026. The detailed valuation method is expected to be clarified in Tax Department guidance, so check the latest position before you file.

What happens to crypto losses?

Losses are ring-fenced. You can set a crypto loss only against crypto gains made in the same tax year. You cannot use it against salary, rent or other income, and EY confirms that unused losses are wasted: there is no carry-forward and no carry-back.

This changes how you plan sales. If you have a large gain in March and a losing position in December of the same year, selling both before 31 December lets the loss reduce the taxable gain. A loss realised in January the following year cannot help.

Mining, staking and other income: is it all 8%?

No. PwC's tax summary (reviewed August 2026) states that the 8% regime does not apply to gains on crypto acquired through mining. Mining profits fall under the general rules of the Income Tax Law, which for an individual means the normal progressive bands and, if it is a business, the rules for self-employment.

Other kinds of crypto income are not among the four taxable events listed above:

• Staking, lending and liquidity rewards, airdrops and fees you earn for services are income in their own right, and law firms advise that they need to be assessed on their facts under the general rules.
• NFTs, derivatives and crypto-linked products may or may not fall within the MiCA definition used by the law.
• Being paid in crypto for work is still employment or self-employment income, taxed on the normal bands.

If a large part of your income comes from any of these, take advice before the end of the year rather than at filing time.

Who pays: residents, non-residents and non-doms

Your tax residency decides whether Cyprus taxes your crypto gains at all. If you are tax resident under the 183-day rule or the 60-day rule, Cyprus taxes your worldwide income, which includes gains on any exchange or wallet anywhere in the world. Non-residents are taxed only on income from Cyprus sources. Our guide to the 183-day and 60-day rules explains both tests; from 2026 the 60-day rule no longer requires you to show you are not resident elsewhere.

Non-dom status does not help here. Non-doms are exempt from the special defence contribution on dividends, interest and rent, but the 8% is income tax, so a non-dom resident pays it like anyone else. See non-dom status and taxes in Cyprus.

If you move to Cyprus during a year, or still have tax ties to another country, the other country may also claim the gain. The timing of your move and the relevant double tax treaty can make a big difference, so plan large disposals with an adviser.

What is DAC8 and what will the Tax Department see?

DAC8 is the EU directive that extends automatic tax information exchange to crypto. Cyprus brought it into law with Law 38(I)/2026, published on 27 March 2026 and effective from 1 January 2026. It mirrors the OECD's Crypto-Asset Reporting Framework (CARF), which non-EU countries are adopting too.

Under the Cyprus law, as summarised by EY:

1. Reporting crypto-asset service providers (exchanges, brokers and similar platforms) must identify their users, collect a signed self-certification with your tax residence and tax identification number, and record your transactions.
2. They report each calendar year by 30 June of the following year. The first reports, covering 2026, are due by 30 June 2027.
3. The Tax Department passes data on users resident elsewhere to their home tax authorities, with the first exchange by 30 September 2027. Data on Cyprus residents held by platforms in other EU countries comes back the same way.

In short, your 2026 trading on a regulated platform will be visible to the Tax Department around the time you file your 2026 return. Make sure the platform has your correct Cyprus TIN and address; see how to get a Cyprus tax number.

How do you declare crypto gains on your tax return?

Crypto gains for 2026 go on your personal income tax return (form T.D. 1) for the 2026 tax year, filed online in 2027. From 2026 every Cyprus tax resident aged 25 to 70 must file a return anyway, even with no income.

Step by step

1. Check your access. You need a TIN and a CY Login account for Tax For All. The 2025 return was still filed on TAXISnet; the Tax Department is moving services to Tax For All, so check its announcement on which portal opens for 2026 returns.
2. Download your full 2026 transaction history from every exchange and wallet, including closed accounts.
3. Work out each disposal (sale, swap, gift, payment) in euros, with the cost of the coins disposed of and the fees.
4. Net gains and losses for the year. Losses only reduce crypto gains of the same year.
5. Separate out mining, staking and other income, which are not taxed at 8%.
6. Enter the figures and submit by 31 July 2027 (or 31 January 2028 if you are self-employed and need audited accounts). Pay any tax due by the same date. Our step-by-step tax return guide covers the screens, and Cyprus tax deadlines 2027 lists every date.

A late return now costs €150, unpaid tax carries a 5% surcharge plus a further 5% after two months and interest, and leaving income out of a return can cost up to €5,000. If an accountant files for you, add them as a tax agent in Tax For All instead of sharing your password.

Which crypto platforms are licensed in Cyprus?

Since 1 July 2026, when the MiCA transitional period ended, crypto services may be offered in Cyprus only by firms authorised under MiCA. CySEC has reminded investors that clients of unauthorised providers do not get MiCA protection for their assets and should consider moving them to an authorised provider or a self-hosted wallet.

To check a provider:

• Look up the exact legal entity on CySEC's list of authorised crypto-asset service providers (Article 63) or of financial firms notified to offer crypto services (Article 60).
• Providers authorised in another EU country can serve Cyprus residents through a passport and will not appear on CySEC's own list; check the ESMA MiCA pages instead.
• Check that the licence covers the service you use (custody, exchange, trading platform). Scammers copy real licence numbers and logos, so never act on an unsolicited message asking you to move coins.

What records should you keep?

Keep these for several years after you file, not just until the return is in; your accountant can tell you how long for your situation:

Will your bank ask about crypto money?

Very likely, if you transfer significant crypto proceeds to a Cyprus bank. Banks apply anti-money-laundering checks and must understand the source of funds, and crypto receipts are routinely checked more closely. Have ready: statements from the exchange showing the sale and the withdrawal to your named account, evidence of how you first funded the purchase (salary, savings, sale of property), and, for 2026 onwards, your tax return showing the gain was declared. Sending proceeds from a MiCA-authorised platform in your own name makes this easier. Our guides to banks in Cyprus and sending money to and from Cyprus cover opening accounts and transfers.

What to do next

1. Confirm whether you are Cyprus tax resident for 2026: 183-day and 60-day rules.
2. Before 31 December 2026, review your gains and losses for the year; losses cannot be carried into 2027.
3. Export your 2026 transaction histories now, while every account is still open.
4. Make sure your platforms hold your Cyprus TIN and use MiCA-authorised providers.
5. Find help: how to choose an accountant in Cyprus and accountants and tax advisers in our directory.
6. Read the wider picture: Cyprus tax reform 2026 explained.