Nikolai Timofejev
15 years in FinTech and payments. Maps your business model to the right licence scope and leads the file all the way to the CySEC decision, including banking and payment rails.
Get a crypto license in Cyprus.
The regulator that built the EU's investment-firm hub now licenses crypto under MiCA - with a 2026 tax reform that gives founders 15% corporate tax, 5% or zero on dividends and a flat 8% on personal crypto gains. We run the file end to end.
27 yrs
on the international marketon the market
60+
in-house specialistsspecialists
400+
Crypto licenses obtainedlicenses obtained
Updated
Cyprus in brief
Twenty years of licensing experience, pointed at crypto.
Cyprus built the EU's largest cluster of licensed investment firms - hundreds of CIFs, brokerages and funds supervised by CySEC over two decades. That bench now works on crypto: under MiCA, CySEC is the competent authority for CASP authorisation, applying the standard EU capital classes and a review culture honed on exactly this kind of applicant. The old national CASP register is history - transitional firms had to file by 27 February 2026, the EU-wide grandfathering ended on 1 July 2026, and today only authorised CASPs and passporting EU firms serve the market. New applications, of course, remain open - that is the route we build.
The second argument is the 2026 tax reform, in force since 1 January: corporation tax at 15%, the defence levy on dividends cut from 17% to 5%, and zero for non-domiciled residents - plus a new flat 8% tax on individuals' crypto gains. Add the IP Box at an effective ~3% for qualifying software and the 17-year non-dom horizon, and Cyprus pairs an EU passport with one of the sharpest founder tax stacks in the Union.
The regulator behind the EU's investment-firm hub licenses crypto under MiCA. Transitional period over - authorisation is the route, and CySEC's bench makes it predictable.
The 2026 reform: 15% corporate tax, dividends at 5% - 0% for non-doms, and a flat 8% on personal crypto gains. The EU's sharpest founder stack.
Licence classes
One authorisation, scoped to your services.
MiCA defines ten crypto-asset services in three capital classes. CySEC authorises the exact scope you apply for. With the file standards it spent twenty years applying to investment firms. We fix the perimeter first, then build once.
Ten MiCA services in three capital classes. CySEC authorises the scope you apply for.
01 - CASP · CLASS 1-2
Core crypto services
For brokers, exchangers and custodians. Execution, exchange and safekeeping of client crypto-assets under one CySEC authorisation. Minimum capital €50,000-€125,000 depending on scope.
For brokers, exchangers and custodians. Execution, exchange and safekeeping of client crypto-assets under one CySEC authorisation. Minimum capital €50,000-€125,000 depending on scope.
- ✓Exchange of crypto ↔ fiat and crypto ↔ crypto
- ✓Execution, reception and transmission of orders
- ✓Custody and administration of client crypto-assets
- ✓Transfer services for crypto-assets
- ✓Advice and portfolio management on crypto-assets
- ✓Placing of crypto-assets
02 - CASP · CLASS 3
8% flat tax on crypto gainsTrading platform
The highest MiCA tier. Operation of a crypto trading venue with €150,000 minimum capital, listing rules and market-abuse controls, passportable across the EU from the island the industry already knows.
The highest MiCA tier. A trading venue with €150,000 capital, passportable from the island the industry knows.
- ✓Operation of a crypto-asset trading platform
- ✓Matching of buyers and sellers in the venue
- ✓Admission-to-trading (listing) framework
- ✓Market-abuse monitoring under MiCA Title VI
- ✓Combines with custody and exchange services
- ✓One home regulator - CySEC - for all 27 states
Costs and timelines are confirmed for your case before any work begins. CySEC fees are statutory; the real investment is the file and substance. Both scoped individually in your quote. Relocation and non-dom structuring for founders is quoted alongside.
Why Cyprus
The bench, the passport, and the tax stack.
The framework is MiCA, supervised by CySEC. The regulator behind the EU's investment-firm hub. Inside the tax system rebuilt for 2026.
✓
A regulator with a licensing bench
CySEC has licensed and supervised hundreds of investment firms for twenty years. Its CASP desk applies that same machinery. Experienced case officers, known standards, no improvisation.Twenty years of CIFs. Known standards, no improvisation.
✓
15% corporation tax
The 2026 reform set corporation tax at 15%. Pillar Two-proof and still among the EU's lowest. With the defence levy on dividends cut to 5%, and to zero for non-domiciled shareholders.Pillar Two-proof, still among the EU's lowest.
✓
8% on founders' crypto gains
The reform introduced a flat 8% tax on individuals' crypto gains. One of the only purpose-built personal crypto rates in the EU, replacing years of grey-zone uncertainty.A purpose-built personal rate. Near-unique in the EU.
✓
The non-dom horizon
Seventeen years of non-dom status for relocating founders - no defence levy on dividends or interest, layered on top of the 8% crypto rate and 15% corporate rate.17 years; dividends at zero for relocating founders.
✓
IP Box at ~3%
Qualifying software profits. Matching engines, custody tech, platform IP. Reach an effective rate around 3% under the Cyprus IP Box, one of Europe's strongest.Platform IP often qualifies.
✓
A service ecosystem that exists
Administrators, auditors, compliance officers and lawyers who have run licensed financial firms for decades. The operational layer a CASP needs is already on the island, in English.Admins, auditors, AMLCOs. On-island, in English.
How it compares
How Cyprus differs from other routes.
Cyprus pairs an experienced supervisor with the EU's sharpest founder tax stack. The comparison is below.
Cyprus vs other jurisdictions
| Feature |  Cyprus | Other jurisdictions |
|---|---|---|
| Regulatory regime | MiCA CASP - CySEC | National regimes or lighter desks |
| Founder tax stack | 15% CIT · 5%/0% dividends · 8% gains | Typically 19-33% at each layer |
| Regulator's bench | 20 years licensing investment firms | Newer desks, thinner practice |
| Licensing speed | 6-9 months in practice | 4-6 months at the fastest desks |
Regulatory regime
CyprusMiCA CASP - CySEC
Other jurisdictionsNational regimes or lighter desks
Founder tax stack
Cyprus15% CIT · 5%/0% dividends · 8% gains
Other jurisdictionsTypically 19-33% at each layer
Regulator's bench
Cyprus20 years licensing investment firms
Other jurisdictionsNewer desks, thinner practice
Licensing speed
Cyprus6-9 months in practice
Other jurisdictions4-6 months at the fastest desks
Country by country
| Country | License type | Taxation | Requirements |
|---|---|---|---|
| Cyprus | MiCA CASP (CySEC) | 15% CIT · 8% founder gains | Experienced, CIF-hub bench |
 Malta | MiCA CASP (MFSA) | ~5-10% effective after refunds | Experienced, slower queue |
 Estonia | MiCA CASP (Finantsinspektsioon) | 0% retained / 22% on payout | Experienced, demanding supervisor |
 Czech Republic | MiCA CASP (ČNB) | 21% CIT | Fast, technical, predictable |
CyprusLicense typeMiCA CASP (CySEC)
Taxation15% CIT · 8% founder gains
RequirementsExperienced, CIF-hub bench
MaltaLicense typeMiCA CASP (MFSA)
Taxation~5-10% effective after refunds
RequirementsExperienced, slower queue
EstoniaLicense typeMiCA CASP (Finantsinspektsioon)
Taxation0% retained / 22% on payout
RequirementsExperienced, demanding supervisor
Czech RepublicLicense typeMiCA CASP (ČNB)
Taxation21% CIT
RequirementsFast, technical, predictable
Before you apply
Requirements for the CySEC authorisation.Requirements for CySEC authorisation.
CySEC reviews CASP files with the machinery it built for investment firms. Structured, precedent-driven and thorough. This is what a passing file contains.
01
Cyprus entity. A limited company with its registered office and effective management in Cyprus.
02
Substance. Real presence on the island: local directors, office and the compliance function on the ground.
03
Fit & proper management. Clean records and relevant experience for directors, with CySEC questionnaires and vetting.
04
Own funds - €50,000, €125,000 or €150,000 by service class, or one quarter of fixed overheads if higher.
05
Programme of operations. Services, target markets, volumes and a business plan CySEC can interrogate.
06
AML/CFT framework. AML Law-grade KYC, EDD, monitoring and reporting to MOKAS, with a named AMLCO.
07
ICT and DORA compliance. Resilience testing, incident reporting and the ICT third-party register.
08
Safeguarding of client assets. Segregation of client crypto and funds, custody policy, key management.
09
Governance. Ownership to UBOs, qualifying holdings disclosed, board composition, conflicts handling.
10
Wind-down plan. Credible, funded and documented.
11
For relocating founders: tax residence, non-dom status and the 60-day rule. Structured alongside the licence.
01
Cyprus company, managed from the island.
02
Local directors, office and compliance.
03
Fit & proper vetting via CySEC questionnaires.
04
Own funds €50k-€150k by class.
05
Programme of operations + business plan.
06
AML with named AMLCO, reporting to MOKAS.
07
ICT resilience under DORA.
08
Segregation and custody of client assets.
09
Ownership disclosed up to UBOs.
10
Credible, funded wind-down plan.
Reflects MiCA and CySEC practice as of 2026. The transitional period ended 1 July 2026. New applications remain open; unauthorised service does not.MiCA + CySEC practice as of 2026. Transition ended 1 Jul 2026; new applications open.
How it works
From first call to the CySEC register.
01
Perimeter and strategy
We map your services to the MiCA classes and fix scope, capital and timeline in writing - plus the founder tax plan if you are relocating.Classes, capital, founder tax plan - in writing.
02
Cyprus company and substance
Company formation, registered office, local directors and governance. The presence CySEC verifies.Cyprus company, office, local directors.
03
The application file
Programme of operations, AML/CFT framework, DORA documentation, safeguarding and wind-down. Built to CySEC's standards.Programme, AML, DORA, wind-down - CySEC-grade.
04
CySEC review
25 working days to completeness, 40 more to assessment on the statutory clock - 6-9 months in practice. We answer every question round.25+40 wd statutory; 6-9 months in practice.
05
Authorisation and passport
Entry in CySEC's register, ESMA notification and passporting into all 27 EU states - plus ongoing reporting we can keep running.Register entry, then all 27 EU states.
Quick facts
RegulatorCySEC
FrameworkMiCA CASP
Capital€50k / €125k / €150k
Statutory clock25 + 40 working days
In practice6-9 months
Corporation tax15% since 1 Jan 2026
Founders' crypto gains8% flat
PassportAll 27 EU states
The transitional period ended 1 July 2026. New applications remain open. The clock is driven by file completeness.
On the ground in Cyprus
Run from our Nicosia office.
Prifinance - Cyprus
Nicosia · Cyprus
Nicosia, Cyprus
01
Cyprus company formation
Limited company, registered office and the corporate layer CySEC expects. Incorporated and structured for the authorisation.Company and corporate layer, structured for the file.
02
The authorisation file
Programme of operations, AML pack, DORA documentation and capital planning. Drafted by us and defended through CySEC's question rounds.Programme, AML, DORA. Defended through review.
03
Substance and staffing
Director, AMLCO and compliance recruitment, office arrangements and payroll. The presence CySEC verifies, assembled pragmatically.Directors, AMLCO, office - assembled.
04
Founder relocation
Tax residence under the 60-day rule, non-dom registration and the 8%/5%/15% stack. Structured alongside the licence, not after it.60-day rule, non-dom, the 8%/5%/15% stack.
We also have offices in
Tallinn
Estonia
Roseni 13
Vilnius
Lithuania
Gedimino pr. 2
Prague
Czech Republic
Vlkova 532/8, Žižkov
London
United Kingdom
7 Bell Yard
Dubai
UAE
33 Level, Al Saqr Business Tower
Madeira
Portugal
Rua da Alegria 31, 1F
Budapest
Hungary
Korányi Sándor u. 4
Good to know
Taxation of crypto companies in Cyprus.
The 2026 reform. Enacted in December 2025, in force since 1 January. Rebuilt the system around a 15% corporate rate and gave crypto its own personal rate. The result is the EU's sharpest founder stack.
Corporation tax 15%
Raised from 12.5% by the 2026 reform. Deliberately aligned with Pillar Two so nothing claws it back. Still among the lowest headline rates in the EU, with ordinary deductions.Since 1 Jan 2026; Pillar Two-proof.
Dividends: 5% - or zero
The defence levy on dividends fell from 17% to 5% in 2026. Non-domiciled residents pay none at all. The layer that makes the Cyprus stack work for relocating founders.Non-doms pay no defence levy at all.
Crypto gains: 8% flat
The reform introduced a flat 8% tax on individuals' gains from selling, exchanging or spending crypto. A purpose-built rate that replaced years of uncertainty. Mining sits outside it, taxed as income.Individuals; mining excluded, taxed as income.
IP Box at ~3%
Qualifying software profits reach an effective rate around 3% - 80% of qualifying IP income is exempt, and the 15% rate applies to the remainder. Platform IP often qualifies.80% exemption on qualifying IP income.
Non-dom: 17 years
Relocating founders take non-dom status for seventeen years - no defence levy on dividends or interest. With the 60-day residence rule, the whole stack is reachable without moving your life wholesale.Reachable via the 60-day residence rule.
VAT-exempt exchange · DAC8
Crypto ↔ fiat exchange is VAT-exempt under the Hedqvist line; the 19% standard rate touches only ordinary supplies. DAC8 CASP reporting applies EU-wide from 2026.Hedqvist line; EU reporting from 2026.
Tax summary
Corporation tax15% · since 1 Jan 2026
Dividends (SDC)5% · 0% non-dom
Crypto gains (individuals)8% flat
IP Box~3% effective
Non-dom status17 years
VAT on crypto exchangeExempt
Tax treaties65+
*Figures as of 2026, per the reform gazetted 31 December 2025. Dividends from pre-2026 profits can stay at 17% if distributed by 2031. We model the transition before you commit.
Turnkey professional support
Experienced lawyers and international consultants.
We provide end-to-end support, from company registration and the application file to regulatory interaction and compliance oversight - with an individualized approach to each client.
Oleksii Kindratenko
Builds the application itself: Cyprus limited company, AML/KYC policy pack, capital structure and tax registrations. His document sets are the reason reviews finish in months, not years.
Eugeniu Bevziuc
First point of contact for international founders. Runs the whole setup remotely, across time zones and languages - from the first call to a live, CySEC-authorised business.
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Cyprus · CySEC
Launch your crypto project in Cyprus with expert support.
Full-service assistance - from company registration to CySEC authorisation and ongoing compliance.
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Is Cyprus the right fit for your project?
Our legal team will analyze your case at no cost and provide a written legal opinion: which jurisdiction, licence scope, or route fits your business.
Written assessment within 2-5 business days
Request a free conclusion →FAQ
The Cyprus crypto licence: quick answers.
What licence does a crypto business need in Cyprus?+
CASP authorisation from CySEC under MiCA - required for exchange, brokerage, custody, transfer, advice and trading-platform services aimed at the Cypriot market. The old national CASP register is closed; MiCA is the only route.
What happened to the old CySEC CASP register?+
It ended with MiCA. Transitional firms had to file for authorisation by 27 February 2026 or submit wind-down plans, and the EU-wide grandfathering ended on 1 July 2026. New applications remain open at any time - that is the normal route today.
How much capital is required?+
MiCA's three classes: €50,000 for advice and order services, €125,000 for exchange, execution and custody, €150,000 for a trading platform - or a quarter of annual fixed overheads if that is higher.
How long does CySEC authorisation take?+
The statutory clock is 25 working days to completeness plus 40 for assessment; realistic end-to-end timelines run 6-9 months. CySEC's case officers are experienced - files that arrive complete move predictably.
What substance does CySEC expect?+
A Cyprus company with effective management on the island: local directors, an office, an AMLCO and compliance function on the ground, and systems that demonstrably run. The CIF-era standards apply - letterbox setups fail.
How are crypto companies taxed?+
Corporation tax at 15% since 1 January 2026, VAT-exempt crypto-fiat exchange, and the IP Box at an effective ~3% for qualifying software profits. DAC8 reporting applies from 2026.
What is the 8% crypto tax?+
The 2026 reform introduced a flat 8% tax on individuals' gains from selling, exchanging or spending crypto - one of the only purpose-built personal crypto rates in the EU. Mining is excluded and taxed as income; losses offset only same-year crypto gains.
How does the non-dom regime work with this?+
Relocating founders take non-dom status for 17 years - no defence levy on dividends or interest, so profits distribute at 0% personally on top of the 15% corporate rate. Tax residence is reachable under the 60-day rule. Structured together with the licence, the stack is unmatched in the EU.
Does the Cyprus licence passport across the EU?+
Yes - one CySEC authorisation covers all 27 EU member states through MiCA passporting after notification. The forex industry built EU-wide businesses on exactly this model from Cyprus; crypto now does the same.
Why Cyprus rather than Malta or a faster desk?+
Against Malta: comparable experience, materially faster queue and a simpler tax system after the 2026 reform. Against the fast desks: CySEC's twenty-year licensing bench and the founder tax stack - 15% corporate, 5% or 0% dividends, 8% personal crypto gains, which no fast desk can match.
What licence is needed?+
CySEC CASP authorisation under MiCA - the only route.
The old CASP register?+
Closed; grandfathering ended 1 Jul 2026. New applications open.
Capital?+
€50k / €125k / €150k by service class.
How long?+
6-9 months; completeness drives it.
Substance?+
Local directors, office, AMLCO - CIF-era standards.
Company taxes?+
15% CIT; IP Box ~3%; VAT-exempt exchange.
The 8% crypto tax?+
Flat rate on individuals' crypto gains since 2026.
Non-dom?+
17 years, 0% dividends - via the 60-day rule.
EU passport?+
Yes - all 27 states by notification.
Why Cyprus?+
The bench plus the EU's sharpest founder tax stack.
Client notes
Google4.7★★★★★
Founders who wanted it done right.
Google4.7★★★★★
“As a software development crew at FewMoreTaps OÜ, we've had the pleasure of working with Prifinance on some key financial moves.First of all, navigating the world of corporate banking and finance can be a maze, but Prifinance made it feel like a walk in the park. They helped us set up a corporate bank account without the hassle of jumping on a plane or drowning in paperwork. Everything was done remotely, smoothly…”
Google
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Google
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Google
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Google
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Prifinance is an independent law and advisory firm. We are not a regulator and are not affiliated with, endorsed by, or acting on behalf of CySEC or any other public authority. Authorisations are granted by, and obtained directly from, the competent authorities.