Cyprus has emerged as a crypto-friendly EU jurisdiction with a growing number of licensed CASPs under MiCA. CySEC actively regulates crypto investment services, and the island has attracted numerous crypto firms due to its favorable tax regime and English-speaking business environment.
| Status | crypto_friendly |
| Risk Score | 15/100 (Low Risk) |
| Region | europe |
| Currency | EUR |
| Adoption Rank | #25 |
| Capital Gains (Personal) | 8% flat income tax on disposal gains for individuals under Article 20E of the Income Tax Law, effective 1 January 2026 (enacted 22 December 2025, published Official Gazette 31 December 2025). CGT continues to apply only to immovable property; crypto disposals are now taxed under a separate income tax provision, not CGT. Losses offset only same-year crypto gains; no carry-forward. |
| Capital Gains (Corporate) | 8% flat income tax on crypto disposal gains for companies under Article 20E, effective 1 January 2026. General corporate income tax rate increased from 12.5% to 15% under the 2026 reform; however, crypto disposal gains are carved out under the specific 8% Article 20E regime. Mining income remains subject to the general 15% corporate rate. |
| VAT on Crypto | No |
| Staking Tax | Taxed as income at applicable personal or corporate rates |
| Airdrop Tax | No specific guidance; likely taxed as income if received in course of business |
Cyprus does not levy capital gains tax on the sale of crypto assets by individuals (CGT applies only to gains from disposal of immovable property). Corporate entities pay 12.5% on crypto trading profits. The IP box regime and non-domicile status offer additional tax planning opportunities.
| Required | Yes |
| Regulator | CySEC (for CASPs/MiCA Title II/III/V/VI); Central Bank of Cyprus (for EMT issuers under MiCA Title IV) |
| Framework | Markets in Crypto-Assets Regulation (MiCA); CySEC CASP Registration |
| Ease | medium |
| Cost (USD) | $30,000 - $200,000 |
CySEC has been actively registering CASPs and transitioning to full MiCA authorization. Cyprus was one of the first EU countries to implement a national CASP registration. CySEC has approved numerous crypto-related CIF licenses for firms offering crypto CFDs and derivatives.
CySEC has issued warnings against unlicensed crypto platforms and suspended licenses for AML failures. In 2025, CySEC took action against entities offering crypto services without registration.
Status: regulated
Under MiCA, DeFi protocols with identifiable operators may require CASP authorization. CySEC follows ESMA guidance on DeFi regulation. Fully decentralized protocols remain in a grey area.
Status: specific_framework
MiCA stablecoin framework applies. ARTs and EMTs require authorization from CySEC or the Central Bank of Cyprus respectively.
Status: Unclear
MiCA excludes unique NFTs but covers fungible-like NFTs. CySEC follows ESMA guidance on NFT classification.
| Legal | Yes |
| Electricity Cost | $0.18/kWh |
| Renewable Energy | 30% |
| Infrastructure | good |
Mining is legal with moderate electricity costs and a good infrastructure environment. Renewable energy accounts for about 30% of electricity supply.
| Sanctions | — |
Cyprus has emerged as a crypto-friendly EU jurisdiction with a growing number of licensed CASPs under MiCA. CySEC actively regulates crypto investment services, and the island has attracted numerous crypto firms due to its favorable tax regime and English-speaking business environment.
Yes, licensing is required for VASPs.
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Explore IT Services →Last reviewed: 2026-06-01 · Data source: Soken Crypto Legal Map
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