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Tsquared Services

Software & Tech Developers · Guide

Tax for crypto and Web3 developers

Cyprus crypto developers and token projects need careful classification of token income, VAT and CySEC rules under MiCA.

This guide is written for freelance software developers, tech startups and IT companies. Rules change regularly and individual circumstances vary, so speak to a Tsquared accountant before acting. We regularly help clients with ip box 2.5% effective tax, freelancer vs. company, vat on cross-border digital services.

Key points

  • Token income classification
  • Flat 8% tax on crypto gains from 2026
  • MiCA licensing
  • Treasury accounting

Challenges you face, solutions we provide

Challenge: IP Box 2.5% effective tax

Our solution: IP Box eligibility assessed and nexus documentation kept current

Challenge: Freelancer vs. company

Our solution: Freelance vs. company comparison with real numbers before you switch

Challenge: VAT on cross-border digital services

Our solution: Reverse-charge and OSS VAT handled correctly on every cross-border invoice

Challenge: Stock options and equity

Our solution: Option schemes structured for the flat 8% regime with payroll reporting

Challenge: R&D cost tracking

Our solution: The 120% R&D super-deduction claimed with timesheet evidence

Frequently asked questions

Tax for crypto and Web3 developers: what's the short answer?
Cyprus crypto developers and token projects need careful classification of token income, VAT and CySEC rules under MiCA.
Can Tsquared help with tax for crypto and web3 developers?
Yes. We advise freelance software developers, tech startups and IT companies in Cyprus on tax for crypto and web3 developers and handle the filings for you.

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