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On August 6, 2026, the Cyprus Tax Department published long-awaited official FAQ guidance on its website regarding the taxation of crypto-asset income \u2014 Article 20E of the Income Tax Law, in force since January 1, 2026.<\/p>\n
The law sets a flat tax of 8%<\/strong> on gains from the disposal of crypto assets. In the published FAQ, the regulator clarified details absent from the law itself, with particular focus on how tax is determined when a taxpayer changes tax residency (Exit Tax) and transfers assets from the EU and from third countries.<\/p>\n The Tax Department drew a clear distinction in how taxes are accounted for and credited when a taxpayer changes residency or transfers crypto assets to Cyprus:<\/p>\n When crypto assets acquired at different times are sold, gains are calculated strictly on a First In, First Out basis.<\/p>\n Exchanging one crypto asset for another (BTC \u2794 ETH, SOL \u2794 USDT) is treated as a disposal. The 8% tax crystallizes based on the euro market value at the time of the swap \u2014 there’s no need to wait for conversion to fiat.<\/p>\n Only the acquisition cost and direct network\/exchange fees tied to the specific transaction can be deducted from income. Costs such as software, hardware, rent, or subscriptions are not deductible.<\/p>\n Crypto losses can only be offset against crypto gains of the same taxpayer, and only within the same calendar year. Carrying losses forward to future years is not allowed.<\/p>\n The standard tax-free threshold does not apply to the 8% special regime \u2014 tax is due from the first euro of profit.<\/p>\n Payments are made in two instalments during the current year \u2014 by July 31 and by December 31.<\/p>\n NFTs do not fall under the 8% special regime and are taxed under general rules. Mining income is taxed under the standard progressive income tax scale at the time it is received.<\/p>\n If you have specific questions about your structure that aren’t covered by this FAQ, get in touch with our team for a consultation: taxadvisory@mainpartnertrust.<\/a><\/strong>com<\/a><\/strong>. We can help you assess your situation and, where needed, prepare a request for an individual Tax Ruling from the Cyprus Tax Department.<\/p>\n Note: The content of this article is relevant at the time of its first publication. It is intended to provide general information on the topic and does not constitute legal advice. We recommend seeking professional advice regarding your specific matter before taking action based on the information presented. For more information or consultation, please contact our tax experts by email at\u00a0<\/span><\/i>contact@mainpartnertrust.com<\/span><\/i><\/a><\/p>\n See more at\u00a0<\/em>Instagram<\/em><\/a>,\u00a0<\/em>https:\/\/t.me\/mainpartnertrust<\/em><\/a>\u00a0\u00a0<\/em><\/p>","protected":false},"excerpt":{"rendered":" On August 6, 2026, the Cyprus Tax Department published long-awaited official FAQ guidance on its website regarding the taxation of crypto-asset income \u2014 Article 20E of the Income Tax Law, in force since January 1, 2026. The law sets a flat tax of 8% on gains from the disposal of crypto assets. In the published […]<\/p>\n","protected":false},"author":3,"featured_media":2470,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,3],"tags":[],"class_list":["post-2469","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","category-media"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\tThe main point: change of residency and asset transfers (Exit Tax)<\/h2>\n
1. Transfers from EU member states \ud83c\uddea\ud83c\uddfa<\/h3>\n
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2. Transfers from third countries (Russia, UAE, UK, Serbia, and others)<\/h3>\n
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3. Leaving Cyprus<\/h3>\n
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Other key, non-obvious clarifications from the FAQ<\/h2>\n
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Still have questions?<\/h2>\n