Cyprus Introduces 8% Flat Tax On Crypto Asset Gains

The Council of Ministers, at its meeting on 29 October 2025, approved a series of legislative proposals forming part of Cyprus's 2025 Tax Reform. Among these measures, which have not yet been enacted by Parliament, is the introduction of a specific tax regime for crypto assets through the addition of Article 20E to the Income Tax Law.

The bill has been submitted to the House of Representatives for consideration and vote.

The following summary reflects the content of the proposed law.

1. New Article 20E – Taxation of Gains from Crypto Assets

According to the amendment, a special method of taxation is established for profits arising from the disposal of crypto assets.

• These profits will be taxed at a flat rate of 8%.