DAC8 Reporting in Cyprus: Practical Guide

Cyprus has established itself as a significant financial services centre within the EU, attracting a range of international businesses including crypto-asset service providers. The Tmima Forologias (Tax Department) of the Ministry of Finance is expected to be the competent authority for DAC8 reporting. This guide provides practical information for CASPs operating in or serving users in Cyprus, with particular attention to considerations relevant to its role as an international business hub.

Overview

DAC8 extends the EU's automatic exchange of information framework to crypto-asset transactions. Cyprus, as a member state with a substantial international financial services sector, may see a notable number of CASPs falling under DAC8 obligations. The island's existing experience with CRS and FATCA reporting provides a foundation for DAC8 implementation. CASPs should be aware that Cyprus's role as a jurisdiction attracting offshore structures may draw additional scrutiny to the quality and completeness of DAC8 reports.

Competent Authority

The Tmima Forologias (Tax Department) under the Ypourgeio Oikonomikon (Ministry of Finance) is the competent authority for tax matters in Cyprus, including international exchange of information. The Tax Department is expected to receive and process DAC8 reports from reporting CASPs.

Detail	Information
Authority name	Tmima Forologias (Tax Department)
Parent ministry	Ypourgeio Oikonomikon (Ministry of Finance)
Official gazette	Episimi Efimerida tis Dimokratias (Official Gazette)
Tax ID format	TIC (Tax Identification Code) — 9 characters (e.g., 12345678A)
Official languages	Greek (primary), Turkish (secondary); English widely used in business

Key Requirements

CASPs should prepare to report the following under DAC8:

• Reportable users: Individuals and entities tax resident in EU member states who conduct reportable crypto-asset transactions. Given Cyprus's international business community, particular attention may be needed for users with complex residency situations.
• Transaction types: Crypto-to-fiat exchanges, crypto-to-crypto exchanges, and transfers of reportable crypto-assets are typically in scope.
• Data elements: Full name, address, date of birth, TIN (TIC for Cypriot residents), transaction gross amounts, number of units, and crypto-asset details.
• Due diligence: Self-certification and TIN validation procedures should be applied carefully. CASPs should pay close attention to residency determinations, particularly for users associated with international structures.
• Offshore considerations: Cyprus attracts entities with complex international ownership structures. CASPs should ensure their due diligence procedures can accurately identify the tax residency of users who may hold multiple residencies or operate through non-transparent entities.

Submission Process

The Tax Department has been modernising its electronic services, and DAC8 submissions are expected to be handled digitally.

• Format: Reports should follow the OECD CARF XML schema as mandated by DAC8. The Tax Department may publish additional validation rules and specifications for Cypriot submissions.
• Language: Tax administration in Cyprus is officially conducted in Greek, though English is widely used in practice. XML data fields should follow international conventions.
• Submission channel: The Tax Department may integrate DAC8 reporting into its existing TAXISnet electronic filing platform, which is already used for CRS submissions. The exact submission method is to be confirmed.
• TIC requirement: Reporting entities will need a Cypriot Tax Identification Code (TIC) for filings.

Important Dates

• Transposition deadline: December 31, 2025 (directive must be incorporated into Cypriot law)
• Data collection begins: January 1, 2026 (reporting entities should start collecting relevant data)
• First reporting period: Calendar year 2026
• First reports due: 2027 (exact date to be confirmed by the Tax Department)

Practical Tips

• Register on TAXISnet: Ensure your entity is registered with the Tax Department and has access to the TAXISnet electronic filing platform.
• Monitor the Official Gazette: All implementing legislation will be published in the Episimi Efimerida. Check regularly for relevant laws and ministerial decrees.
• Strengthen residency determination processes: Given Cyprus's international business profile, invest in thorough due diligence procedures for determining user tax residency, especially for users with ties to multiple jurisdictions.
• Collect TIC numbers accurately: Ensure your systems can capture and validate Cypriot Tax Identification Codes (9-character alphanumeric format).
• Prepare for enhanced scrutiny: Cyprus's profile as an international financial centre may mean that DAC8 data is subject to close review by both Cypriot and receiving-jurisdiction authorities.
• Coordinate with CySEC: The Cyprus Securities and Exchange Commission (CySEC) is expected to play a role in MiCA licensing. DAC8 reporting obligations may need to be coordinated with CySEC regulatory requirements.
• Engage local professionals: Consider working with Cypriot forologikoi symvouloi (tax advisors) experienced in international reporting, exchange of information, and crypto-asset matters.

Important Notice

This guide provides general information about DAC8 reporting in Cyprus. Requirements may change as the directive is transposed into national law. The information presented here should not be considered definitive legal or tax advice. Penalties for non-compliance vary by member state and are determined by national legislation. Always consult the Tax Department and the Ministry of Finance for the latest official requirements. For specific compliance questions, seek advice from qualified Cypriot tax professionals.