How is forex trading taxed in Cyprus in 2026?
How this answer was verified
- Cross-checked against broker-published fact sheets, regulator licensing databases, and ESMA product intervention notices.
- Reviewed by the FX-Brokers EU editorial desks (Markets, Platforms, Regulation). Desk structure disclosed at /about/editorial-desks.
- Refreshed quarterly. The most recent verification date is shown above. Read our methodology.
Related
What is the best forex broker for Cyprus residents in 2026?
For Cyprus residents the top picks are Pepperstone, XM and eToro — all CySEC-licensed with full ICF coverage up to EUR 20,000 and ESMA-aligned safeguards. Pepperstone wins on multi-regulator coverage and raw spreads. XM offers the broadest local-language support and education. eToro adds social and copy trading. Exness holds a CySEC licence but closed EU/EEA retail onboarding in 2019, so Cyprus residents can no longer open new accounts with it.
How is forex trading taxed in Europe?
Forex trading tax treatment varies significantly across EU countries. Germany taxes CFD profits at a flat 25% capital gains rate. France treats forex profits as commercial income (up to 45% marginal). The UK taxes most retail forex gains as capital gains (18-24% since 30 October 2024). Spread betting is tax-free in the UK and Ireland only.
What is CySEC and why does it matter for forex traders?
CySEC (Cyprus Securities and Exchange Commission) is the financial regulator of Cyprus and the most common EU regulator for retail forex brokers. CySEC-licensed brokers comply with MiFID II, ESMA rules, and the Investor Compensation Fund which protects eligible clients up to EUR 20,000 in the event of broker insolvency.