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 | 22/100 (Low Risk) |
| Region | europe |
| Currency | EUR |
| Adoption Rank | #25 |
| Capital Gains (Personal) | 0% on crypto gains for individuals (CGT applies only to immovable property in Cyprus) |
| Capital Gains (Corporate) | 12.5% corporate income tax on crypto trading profits |
| 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 |
| Framework | Markets in Crypto-Assets Regulation (MiCA); CySEC CASP Registration |
| Ease | medium |
| Cost | $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.
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 | $0.18/kWh |
| Renewable | 30% |
| Infrastructure | good |
Mining is legal with moderate electricity costs and a good infrastructure environment. Renewable energy accounts for about 30% of electricity supply.
| Stability | stable |
| Sanctions | No |
| Corruption Index | 58/100 |
| Banking Access | open |
Last reviewed: 2026-04-13 · Data source: Soken Crypto Legal Map
← Back to Crypto Map