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Crypto Taxation in Cyprus 2025: MiCA & Profit Taxation

Current Tax Framework

  • Companies: Realized profits from cryptocurrencies are taxed at 12.5%.

  • Non-dom individuals: Exemption from Capital Gains Tax on most crypto.

  • NFTs: Subject to 19% VAT when classified as digital goods.

MiCA – New Obligations
By 31 December 2025, Crypto-Asset Service Providers must obtain a CySEC license. This requires strong KYC/AML, capital requirements, and internal control systems.

Best Compliance Practices

  • Categorize tokens as utility, asset-referenced, or EMT.

  • Record transactions using FIFO or specific identification.

  • Check VAT treatment for NFT marketplaces.

  • Consider using a holding company for combined NID + IP Box benefits.

Localit Consulting provides a complete Crypto Compliance Pack, including flow mapping and CySEC application submission.

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  1. Invoicing / bookkeeping software and accounting entries
  2. Domain name registration in .com or .eu
  3. 1 consultation per month, with a duration of 1 hour

Final prices with no hidden charges, including all services required for the maintenance and smooth operation of your company.

Contact Us

For more information, you may contact Localit Consulting to receive detailed answers to your questions.
Phone: 6982220765, +357 22053831, Email: info@localitco.com
 
Alternatively, you may complete the expression of interest form by clicking here, and we will contact you promptly.

The information provided in this article does not, under any circumstances, constitute pressure or encouragement for anyone with the aim of avoiding applicable laws in each country or circumventing proper tax policies. It is intended solely as advisory content and informational articles. The author expressly disclaims any liability towards any individual, entity, or company that acts or refrains from acting based on all or part of the content of this text. Therefore, no action should be taken or reliance placed on the subject matter or the information herein without first obtaining advice from appropriate and competent professionals regarding one’s activity and entity in general.