Cyprus crypto tax: disposals, losses and exclusions

What the 8% regime covers

Article 20E covers relevant disposal profits for individuals and companies. Disposal includes sale, gift, exchange and payment. Eligible losses are restricted to the same-year crypto bucket; they cannot be carried forward or transferred to another group company. Disposals of assets acquired through mining fall outside this regime. Ordinary personal and company treatment differ. Article 20E.

Worked disposal example—not a total tax bill

Assume verified euro values, allowable basis, an eligible disposal and a separately established same-year eligible loss:

• Disposal proceeds: €50,000.
• Less acquisition basis: €30,000 → disposal profit €20,000.
• Less separate eligible same-year crypto loss: €5,000 → net relevant profit €15,000.
• Article 20E component: €15,000 × 8% = €1,200.

Do not deduct that same €5,000 twice if it is already in a net-gains input. This example does not classify rewards, approve a basis, include GeSY or resolve foreign tax. Article 20E.

An approved employee share-option plan can also have an 8% provision, but it is a different regime. Neither headline rate classifies every reward, token or equity arrangement. Ministry guidance.

Why a token portfolio is not a relocation plan

Tax residence, domicile and legal permission to work must be checked independently. A visitor permit does not authorize economic activity; a remote-work route needs its own qualifying work and income evidence. Do not treat portfolio value or an exchange account as proof of a visa entitlement.

Non-dom concerns SDC under its conditions. It does not remove the separate crypto-disposal regime, possible GeSY, foreign withholding or continuing foreign-residence/citizenship obligations. Reward receipts, acquisition basis, mining-acquired assets and other excluded classifications need their own treatment before quoting a total tax bill.

The Cyprus residence guide and visitor versus nomad comparison keep these decisions separate.

How to prepare the records and usable cash

1. Export complete exchange/wallet records with dates, assets, quantities and euro valuations.
2. Distinguish acquisition cost, sale proceeds and gain. A transfer to your own bank is not itself a calculation of taxable gain.
3. Classify each receipt and disposal, including mining-acquired assets, before putting amounts in Article 20E.
4. Keep the same-year eligible loss working separate; do not infer a negative-tax refund.
5. Prepare source-of-wealth and source-of-funds trails for the receiving bank, and confirm its onboarding/transfer requirements.
6. Reserve cash for the confirmed combined tax bill and household costs; do not assume future trading returns fund the move.

The crypto component illustration calculates only 8% × max(0, eligible gains − eligible same-year losses) after classification. It does not decide basis, GeSY or foreign credits. Review the bank-evidence guide before converting or transferring funds.