Covered disposals and the important exclusions
Article 20E taxes covered crypto disposal profits at 8%, including qualifying disposals outside a business. The Tax Department's FAQ lists sales, swaps, gifts and using crypto as payment as disposal events. Coins obtained through mining are excluded from this special treatment and fall under the ordinary income-tax rules. Do not describe 8% as the rate on every form of crypto-related income.
Losses are restricted
Crypto disposal losses can offset only the same person's crypto disposal profits in the same tax year. They cannot be carried forward or used against unrelated income. Timing can therefore matter even where the headline rate appears low. Obtain specific advice on staking rewards, arrival cost basis and any foreign exit-tax credit; company transfer examples should not be applied automatically to an individual.
Non-dom is not a crypto exemption
Non-dom relief concerns Special Defence Contribution on eligible interest and dividends, separately from Article 20E crypto income tax. Deemed domicile normally follows 17 out of 20 preceding years of tax residence. Section 3D lets eligible people without Cyprus domicile of origin elect fixed SDC of €50,000 per year for an irrevocable five-year term, paid upfront as €250,000; at most two terms are allowed. This is a paid fixed-SDC election after deemed domicile, not a continued exemption for crypto disposal profits.