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ARTICLE · 21 JANUARY 2026

Cyprus Introduces Competitive 8% Tax On Crypto Profits

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Cyprus has established itself as one of Europe's most attractive destinations for crypto investors and businesses with the introduction of a new 8% flat tax on crypto asset profits.

CyprusTax
Pantelis Kaouros
Pantelis Kaouros
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Cyprus has established itself as one of Europe's most attractive destinations for crypto investors and businesses with the introduction of a new 8% flat tax on crypto asset profits. Effective 1 January 2026, Article 20E of the Income Tax Law creates a clear, ring-fenced framework that applies to both individuals and legal entities. Published in the Official Gazette on 31 December 2025, this progressive legislation addresses the growing demand for regulatory clarity in the crypto sector while maintaining Cyprus's reputation as a tax-efficient jurisdiction for international investment and fintech innovation.

A Clear Framework for Crypto Taxation

The new Article 20E establishes transparent rules for taxable crypto disposals, including sales for fiat currency, exchanges between crypto assets, use of crypto for payments, and gifts. Profits realized from these transactions are subject to the competitive 8% flat rate starting from the 2026 tax year onwards.

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