Cyprus: Tax

They are trying to tax the provident funds, the hedge funds and the pension funds. This is something we are against.

A new Chainalysis report reveals that over $457 billion in potentially taxable cryptocurrency activity occurred globally in 2025, with significant implications for crypto holders and traders in Cyprus. While frameworks like OECD's CARF and EU's DAC8 extend reporting requirements to crypto-asset service providers, substantial portions of DeFi, peer-to-peer transfers, and private wallet holdings remain outside their scope, creating critical compliance gaps that blockchain analytics must fill.

Cyprus's 2026 tax reform introduces a 10% charge on disguised dividends, targeting previously informal arrangements where shareholders use company assets for private purposes. The charge applies to the full market value of assets like company cars and properties, creating significant tax exposure for owner-managed businesses that were previously operating under unreported arrangements.