Taxes · 🇨🇾 Cyprus
Crypto and tokenized asset taxes in Cyprus
Since 1 January 2026, crypto gains are taxed at a flat 8%. Swaps between crypto and paying with crypto count as disposals. Losses only offset crypto gains in the same year.
Crypto
Gains
8% flat on profits from disposing of crypto-assets (from 1 Jan 2026)
Holding period
None.
Losses
Crypto losses can only offset crypto gains in the same tax year. They cannot be carried forward or used against other income.
Also
A disposal is a sale, a gift, a swap of one crypto-asset for another, or using crypto as a means of payment. 'Crypto-asset' follows the MiCA definition. Crypto obtained through mining is outside the 8% rule; any crypto profit outside it is taxed under the ordinary income tax rules.
Income and tokenized assets
Staking, lending, yield
The law does not single out staking, lending or airdrops. Crypto profits that are not covered by the 8% disposal rule (including mining) are taxed under the ordinary income tax rules; the top personal rate from 2026 is 35% on income above EUR 72,000.
Tokenized stocks, bonds, funds
The 8% rule uses the MiCA definition of crypto-assets, which excludes financial instruments. Tokenized shares or bonds that are financial instruments are therefore outside the 8% rule and follow the general rules for securities. No specific guidance.
Tokenized gold
No specific guidance on gold-backed tokens such as PAXG or XAUT.
Filing
Tax year
Calendar year
Reporting
Cyprus transposed DAC8 by Law 38(I)/2026 (published 27 March 2026). Crypto service providers report users and transactions to the Tax Department.
Tax authority
Watch out
- Every crypto-to-crypto swap is taxable at 8%; keep a record of each trade.
- Unused crypto losses are lost at year end.
- Mined coins are taxed under the normal income tax rules, not the 8% rate.
Sources
- Law 244(I)/2025 amending the Income Tax Law (art. 20E) · cylaw.org
- Law 38(I)/2026: DAC8 transposition · cylaw.org
Not confirmed
- Tax treatment of staking, lending and airdrops — no Tax Department guidance found.
- Whether the 8% gains are added to other income for the progressive bands (law not explicit).
- Whether PAXG/XAUT count as crypto-assets for the 8% rule (likely, as MiCA asset-referenced tokens, but unconfirmed).
- DAC8 reporting deadline (30 June 2027 per secondary sources).
- Filing deadline for individual returns.
Researched 2026-11-09 for private individuals resident in Cyprus. Information, not tax advice — rules change; check the tax authority before you file.