In the package of tax reform laws in the Republic of Cyprus, which was submitted to parliament for approval,
included
a clause on the introduction of a separate tax on profits from the sale of cryptocurrency. The single fixed rate will be 8%.
What is the essence of the innovation?
We are talking about selling, exchanging or converting cryptocurrency into other assets or fiat. It will not be the turnover that will be taxed, but the profit. It will not be subject to the usual profit or income tax scale, but a separate rate of 8%. Its size will be the same for everyone. The tax will not be progressive and will not depend on income level.
Example
. A resident of Limassol bought cryptocurrency for
20,000 euros
and sold it for
30,000
Euro. Profit amounted to
10,000 euros
. He will need to pay tax to the Tax Department of the Republic of Cyprus in the amount of
800 euros
(8% of profit).
Cyprus is actively positioning itself as crypto-friendly. The Ministry of Finance is introducing a separate tax to legitimize and simplify the taxation of crypto transactions and stimulate crypto activities in the country.
If the Parliament of the Republic of Cyprus approves a package of laws before the end of this year, the authorities will begin to carry out tax reform
from January 1, 2026
.
