Skip to main content
NEXORACYPRUS

Industry Guide

Cyprus for Crypto & Web3 Businesses

No capital gains tax on crypto disposals by companies, CySEC-regulated licensing pathways, and non-dom 0% SDC on dividends — Cyprus is a leading EU Web3 hub.

Get StartedSee Pricing

Key Advantages

Why Cyprus for Crypto / Web3?

No CGT on Crypto Disposals

Cyprus imposes no capital gains tax on gains from disposal of securities, including crypto assets held as securities, by Cyprus-resident companies. Trading profits are taxed at 12.5% CIT.

CySEC CASP Licensing

Cyprus Securities and Exchange Commission (CySEC) issues Crypto Asset Service Provider (CASP) licences under the EU MiCA framework, enabling passporting across all 27 EU member states.

EU MiCA Compliance

As an EU member state, Cyprus is fully within the MiCA regulatory perimeter. A CySEC CASP licence grants access to the entire EU crypto market under a single regulatory framework.

Non-Dom 0% Dividend SDC

Founders who establish Cyprus tax residency under the non-dom regime pay 0% Special Defence Contribution on dividends — highly valuable for Web3 founders distributing treasury profits.

60-Day Residency Rule

Cyprus offers a 60-day tax residency rule: spend 60 days in Cyprus (and not more than 183 in any other country) to qualify for non-dom status and access the SDC exemption.

Crypto-Savvy Legal Infrastructure

Cyprus law firms and accountants are experienced in crypto structuring, token issuance, DeFi treasury management, and CASP regulatory compliance.

At a Glance

Key Tax Numbers

12.5%
CIT on Trading Profits
Crypto trading / mining income
0%
CGT on Securities Disposals
Includes qualifying crypto assets
0%
Dividend SDC (Non-Dom)
Under non-domicile regime

The Process

How It Works

  1. Incorporate your Cyprus Ltd

    Form your Web3 company with appropriately drafted objects covering crypto asset services, token issuance, or DeFi operations.

  2. Open a corporate bank account

    Open EUR and stablecoin-compatible accounts. We work with banks and EMIs experienced in onboarding crypto businesses.

  3. Apply for CASP licence (if required)

    If you offer exchange, custody, or portfolio management services, apply for a CySEC CASP licence. We coordinate with your regulatory counsel throughout.

  4. Establish ongoing compliance

    Set up AML/KYC policies, annual audited accounts, CASP regulatory reporting, and CIT returns. We handle the accounting and compliance layer.

FAQ

Frequently Asked Questions

Does the 0% CGT exemption apply to all crypto assets held by the company?
The exemption applies to gains on disposal of 'titles' and 'securities'. Whether a particular crypto asset qualifies depends on its legal characterisation. Utility tokens and payment tokens may be treated differently from security tokens. We advise case by case.
How long does it take to obtain a CySEC CASP licence?
CySEC CASP applications typically take 6–12 months. The timeline depends on the completeness of the application, the applicant's regulatory track record, and CySEC's current workload.
Can a DAO or token foundation use a Cyprus company as its legal wrapper?
Yes. Cyprus companies are used as legal wrappers for DAOs, token foundations, and protocol treasuries. The company can be structured to hold protocol assets, distribute grants, and interface with traditional financial infrastructure.
What AML obligations apply to CASP licence holders in Cyprus?
CySEC CASP licence holders must implement a full AML/KYC programme in compliance with the 5th Anti-Money Laundering Directive as transposed into Cyprus law, including customer due diligence, transaction monitoring, and SAR filing obligations.

Related Services

Services relevant to Crypto / Web3 businesses

Company Formation →Crypto Company Cyprus →

Ready to set up your Crypto/Web3 company in Cyprus?

Get started today — remote, fast, and fully managed by our team.

Get Started
CALLWHATSAPPBOOK