27 March 2023

Cyprus Crypto Tax - Frequently Asked Questions

CYAUSE Audit Services Ltd


CYAUSE Audit Services Ltd was formed in 2011 in Nicosia, Cyprus by Mr Kyriakos Tramountanellis. CYAUSE Audit Services Ltd managed to provide continuously a full spectrum of services to its international and local clientele, from offshore and onshore incorporation and licensing of investment firms to accounting, audit and tax services to local and international entities and groups.
Individuals trading in cryptos are subject to PAYE tax as any self employed person would be taxed.
Cyprus Technology
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Are individuals taxed on crypto trade in Cyprus?

Individuals trading in cryptos are subject to PAYE tax as any self employed person would be taxed.

This means that the profits on their trades will be added to their existing salaries and be taxed usually at 35%!!

We strongly recommend you to create a Company to minimise the tax. Contact us for more guidance

Are Companies taxed on crypto trade in Cyprus?

Crypto trading is taxed like any other trade and it is subject to 12.5% Corporation Tax and dividend tax for Cyprus tax residents and domiciled persons.

What is the best way to trade cryptos?

The best way to trade Cryptos is via a Cyprus company primarily due to low taxes involved.

Can I use a company in a tax free zone to trade cryptos and receive my profits? In Dubai for instance or equivalent jurisdiction?

Yes you can but you need to bear in mind that you are still taxable on your worldwide income in Cyprus or at the place of your tax residency.

Therefore, even if your Dubai company will not be taxed, the dividends or income you receive must be reported on your tax return at the country of your tax residency.

Using overseas tax free companies could be risky if you do not have the appropriate consultation so please contact us for further guidance.

Is getting a tax ruling popular? Will it create suspicion for me?

Getting a tax ruling is very popular and will not generate any potential issues. Different departments of the Cyprus income tax office are dealing with the tax ruling enquiries. In addition it is very profitable for the Cyprus Income Tax Office to receive such enquiries as there are disbursements involved for the application.

What are the disbursements for tax rulings?

  • Euro 2,000 for the expedite process which takes appr. 1month; or
  • Euro 1,000 for the slow process that takex appr. 2-3 months to get a response.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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