Cyprus 8% Flat Rate on Crypto Gains from 1 January 2026 — Personal Holdings, Trading, and Staking

Who the rule covers

Article 20E applies to qualifying disposal gains of both individuals and companies. A private holding strategy, non-dom status or a CASP licence does not by itself remove the income-tax charge. Residence, source and transaction facts still matter.

What counts as disposal

• Sales, gifts, swaps between crypto-assets and payments using crypto-assets are covered.
• The asset definition refers to Article 3(1)(5) of EU Regulation 2023/1114. Check unusual tokens against the legal definition.

Mining and other income

Disposals of assets obtained through mining are excluded from this special rule. Profits outside Article 20E follow the ordinary income-tax provisions. Staking rewards, service fees and DeFi receipts need separate classification; do not automatically apply 8% to every crypto-related receipt.

Losses

Qualifying disposal losses offset qualifying disposal gains only in the same tax year. They cannot be carried into later years or surrendered as group relief.

Records and advice

Keep acquisition costs, transaction dates, EUR valuations, wallet records and the reason for each movement. Distinguish a transfer between your own wallets from a disposal. An adviser should review historical acquisitions and unusual transactions before filing.

Primary source

Income Tax Law, Article 20E. This is general information; individual tax treatment requires a review of the facts.

Official verification starting points

CySEC MiCAR information and EU Markets in Crypto-Assets Regulation publish the controlling material for this topic. Check the current law, form, circular or portal instructions before acting; this article is general information and the live official material prevails.

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Disclaimer: This article is for informational purposes only and does not constitute legal, tax, or financial advice. Tax laws change frequently. Consult a qualified Cyprus adviser for guidance specific to your situation. The information on this page is general guidance only and does not constitute legal, tax, accounting, immigration or financial advice. Specific advice should be obtained based on the facts of each case.