How is cryptocurrency taxed in Cyprus?

Cyprus applies a mixed crypto-tax regime — gains can be treated as capital gains or as income depending on how you hold and use the assets.

“Profits arising from the disposal of cryptocurrencies are, as a rule, subject to income tax where such activity constitutes trading in the ordinary course of business. Where the cryptocurrency is held as a capital asset, any gain on disposal may fall within the scope of capital gains tax if it concerns assets specified in the Capital Gains Tax Law, otherwise it is exempt from capital gains tax but may still be taxable as income depending on the facts and circumstances.”

This reflects guidance from Tax Department – Republic of Cyprus, as of 2020-01-01.

See the full Cyprus crypto policy profile for legal status, VASP licensing, stablecoin rules and more — or compare Cyprus with another country. New to the categories? Read how crypto is taxed, explained.

Data basis: Tax Department – Republic of Cyprus, as of 2020-01-01