Cyprus Company Formation for Crypto Traders and Investors

Article 20Ε of the Income Tax Law, inserted by article 13 of the Income Tax (Amending) (No. 4) Law of 2025 and in force from 1 January 2026, charges gains of any person arising from the disposal of crypto-assets at 8%. "Crypto-assets" takes the meaning given in Article 3(1), point (5) of Regulation (EU) 2023/1114. The same amending Law added "profit from transactions in crypto-assets falling within article 20Ε" as a listed source of income under Article 5. Two honest caveats. The article itself does not say the 8% is a standalone final charge — the article immediately before it says exactly that about its own 8% rate, and article 20Ε does not, although the government's tax-reform page describes the measure as standalone taxation at 8% on the net profit — so how it sits alongside your other income is a question for a licensed Cyprus tax advisor rather than for this page. And profit from crypto-asset transactions that does not fall within the article is taxed under the general provisions of Parts III and V instead.

On the face of the Law, yes. Article 20Ε(3)(β) defines "disposal of crypto-assets" as the sale of crypto-assets, the gift of crypto-assets, the exchange of one crypto-asset for another, and the use of a crypto-asset as a means of payment. A crypto-to-crypto exchange is listed expressly, and so is spending a token. That means the taxable events in an active portfolio can vastly outnumber the times money moved to or from a bank, and it makes your exchange and wallet export the primary record rather than a supplementary one. Practically: export continuously, keep the acquisition cost of every position, and give your accountant the full history rather than a year-end balance. Our ICPAC-registered accounting partner works from that record; if it does not exist, reconstructing it is the expensive part of onboarding.

Not across years. Article 20Ε(2) provides that, notwithstanding Article 13, losses arising from the disposal of crypto-assets may be set off only against gains from the disposal of crypto-assets arising in the same tax year, are not carried forward against the same person's profits in later years, and are not surrendered to another company under the group relief provisions in Article 13(4) to (11). So the relief is ring-fenced twice over — to crypto disposals, and to the year they happen in. That is materially narrower than ordinary losses, whose carry-forward period the same 2026 reform extended to seven years. If your trading pattern produces alternating years, model the effect explicitly before you commit to a structure, and take advice on timing from someone licensed to give it.

Mining is expressly carved out: article 20Ε(4) says the article does not apply to disposals of crypto-assets acquired through carrying on mining activity, which means the 8% disposal rate is not what governs it and subsection (5) points anything outside the article at the general charging provisions in Parts III and V of the Law. Staking rewards, lending yield and airdrops are a separate question, and the honest answer is that the Law does not deal with them head-on: none of them is one of the four acts in the definition of disposal, so article 20Ε does not tax them, and which head of charge does is not specified. Note that the reporting rules cast a wider net than the taxing ones — Annex VI to the Administrative Cooperation in the Field of Taxation Law brings staking and lending inside the definition of a crypto-asset service. Get the characterisation from a licensed Cyprus tax advisor before your first return.

No, and the two provisions are worth reading side by side. Article 8(22) of the Income Tax Law exempts profit from the disposal of "titles", and Article 2 defines titles as shares, debentures, bonds, founders' and other securities of companies or other legal persons incorporated in the Republic or abroad, and rights in them. Crypto-assets do not appear in that definition. The 2026 reform did not add them to it either — it added a definition of Regulation (EU) 2023/1114 to Article 2 and gave crypto-asset disposals their own charging article at 20Ε with its own 8% rate. So the design of the Law is that crypto is taxed, not exempt. Whether a specific tokenised instrument is in substance a security rather than a crypto-asset is a genuine characterisation question with real consequences, and it needs advice rather than an assumption.

CyPRO One does not offer or coordinate cryptocurrency, VASP or CySEC licensing work — it is on our list of services we do not provide, and we will not take the engagement. On whether you need one: the line is whether you provide crypto-asset services to other people. Trading and investing your own assets is not that. Custody, running a trading platform, exchanging or executing for clients, advice and portfolio management are. Cyprus's national transitional regime for crypto-asset service providers ended on 1 July 2026, with an authorisation application deadline of 27 February 2026, and CySEC confirmed that providers that did not apply had to submit a wind-down plan because provision of crypto-asset services would not be permitted afterwards without authorisation under Regulation (EU) 2023/1114. If that is your model, engage a specialist Cyprus regulatory law firm directly.

If it is a Reporting Crypto-Asset Service Provider, that is exactly the design. Law 38(I)/2026 inserted article 7ΣΤ into the Administrative Cooperation in the Field of Taxation Law with effect deemed from 1 January 2026: reporting providers apply the due-diligence procedures and reporting requirements in Annex VI, and the Tax Department communicates the resulting information to the competent authorities of the member states concerned through automatic exchange. The reported set includes each reportable user's name, address, member state or states of residence, tax identification numbers and, for individuals, date and place of birth, alongside the transaction information. The point for you is not that reporting is new in principle but that the crypto-specific feed starts with the 2026 year, so the first returns filed under the new tax article are also the first ones with a matching data source behind them.

Sometimes, and never on a promise from us. CyPRO One's banking service is help preparing and reviewing a Revolut Business application rather than a traditional Cyprus bank account, and we are not affiliated with Revolut. Revolut's own onboarding requires the company representative to submit the application; we help you assemble and check the file. Whether an application is accepted, how long it takes, and what appetite exists for any particular activity are entirely Revolut's decisions and cannot be guaranteed. What consistently makes the difference is the evidence pack — a documented source of the original capital, complete exchange and wallet history, and a coherent written description of what the business actually does. The EU regime on information accompanying transfers of crypto-assets, Regulation (EU) 2023/1113, sits behind much of that scrutiny, and it is not going to loosen.