Cyprus Introduces 8% Tax on Digital Asset Profits

Cyprus Introduces 8% Tax on Digital Asset Profits

Cyprus is making a decisive move toward becoming a fully regulated digital finance hub. As part of a comprehensive tax reform package submitted to parliament, the Ministry of Finance has proposed an 8% flat tax on profits derived from digital asset transactions. If adopted, the new framework will take effect on January 1, 2026.

✅ What exactly will be taxed?

The proposed measure targets actual realized profits, not gross transaction volume.

Profits generated from the sale of digital assets will be taxed at 8%, based on the difference between the acquisition and sale price. In simple terms:

• If there’s no gain, there’s no tax obligation.
• Only net profits matter — not overall turnover.

This signals a balanced, pragmatic approach by the Cypriot authorities:

• Bringing digital finance activity out of the grey zone;
• Establishing transparent and investor-friendly rules;
• Offering a moderate rate that supports growth without pushing companies away.

🌍 Why this matters for global businesses

Cyprus continues to transition from a traditional offshore jurisdiction to a reputable financial and technological gateway in the Mediterranean. This tax proposal supports that evolution and sends a strong message to the market:

• Legal clarity over regulatory guesswork
• Predictability for planning and compliance
• Stronger international trust and positioning

How FINANCEIQ HUB LTD can support your business

FINANCEIQ HUB LTD provides full support for obtaining a MiCA license in Cyprus, including:

• End-to-end guidance through the application process;
• Preparation of regulatory documentation and direct liaison with CySEC;
• Strategic planning to ensure readiness for upcoming tax obligations.

In addition, we help clients open bank accounts for regulated digital asset companies

Contact FINANCEIQ HUB LTD today — and let’s prepare your business for Cyprus’s evolving digital finance ecosystem.