1.New Crypto Tax Regime (from 1 January 2026)
As part of the 2026 Cyprus tax reform, a specific tax framework was introduced for profits generated from the disposal of crypto-assets (e.g., selling crypto, swapping one crypto for another, gifting crypto or using crypto as payment). Under this regime:
Individuals are taxed at a flat 8% rate on gains arising from disposals of crypto-assets.
A “disposal” includes events such as converting to fiat, exchanging for another token, gifting, or spending crypto.
Losses arising from these disposals can only be offset against gains from the same tax year — they cannot be carried forward and cannot be set off against other types of income.
This regime applies to Cyprus tax residents, and may also affect non-residents on Cyprus-sourced crypto generated profits.