An emerging EU Tech hub

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The policies of the government have successfully positioned itself as a reliable international business centre and a growing technology hub

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Published: Thu 22 Dec 2022, 10:57 AM

Cyprus is an emerging innovation and technology hub in the European Union and the rest of the world. As an EU Member State since 2004 and Eurozone Member since 2008, Cyprus has evolved through the years, into a modern and cosmopolitan business centre.

In recent years, the island has been attracting a fast-growing number of international companies operating in the areas of technology, research and innovation. With its attractive tax regime, modern legal and regulatory framework, highly-qualified and well-educated human talent and wide network of financial and professional services, Cyprus serves as an ideal location for international businesses and an attractive jurisdiction in order to expand their regional operations and connect to the EU single market.

The participation of the Ministry of Energy Commerce and Industry (MECI) with a Cyprus Pavilion in GITEX Global 2022 exhibition that took place in Dubai between 10th and 14th of October 2022 demonstrates the government’s determination to attract multi-national technology companies and at the same time to assist the participant Cypriot technology companies in becoming more outward-focussed.

The participation in GITEX Global 2022 has been viewed by Cypriot participants as a unique opportunity that can transform their business from a startup or an SME to an industry-leading company. The Cyprus Pavilion was located in the Artificial Intelligence (AI), IOT, Cloud and Big Data hall and showcased to the visitors technologies in the fields of cybersecurity, educational technology, digital transformation, artificial intelligence, virtual reality, unmanned systems, space technologies, sports technology, robotics, and maritime surveillance technologies.

Cyprus is fast becoming one of the top emerging research and innovation centres in Europe. The island, as an innovative economy based on European indicators, currently ranks 10th, in the overall ranking innovation performance, performing above the EU average.

Cyprus is one of the most innovative economies in Europe, classified as a strong innovator based on the latest European Innovation Scoreboard.

The Cyprus government places emphasis in supporting the development of the technology sector and considers it as a priority in the formation of national strategies and incentives schemes. The government has introduced a new strategy for attracting both high-skilled talent and international businesses that wish to set up, relocate or expand their activities in Cyprus.

The existing investment policy has been radically reviewed, broadened and simplified to include a series of actions and reforms, such as improved tax incentives and the introduction of digital nomad visa, which aims to enhance Cyprus’ position as an international high-growth business centre. Qualifying Cyprus tax resident companies that invest in research and development activities may result in an effective tax rate as low as 2.5 per cent.

“We want Cyprus to be one of the world’s best countries to live, work and do business, as stated in Cyprus Vision 2035. To do so, we need to be a world-leading model nation with a thriving, resilient economy and a just inclusive society.”

Committed to constantly improving the business environment and facilitating the ease of doing business on the island, the Republic of Cyprus, as part of the new strategy and in line with Cyprus Vision 2035, has launched the ‘Business Facilitation Unit (BFU)’, as of January 1, 2022. The BFU, operating under the auspices of the Ministry of Energy, Commerce and Industry, provides fast-track business setup to international companies.

During the first year of operation of BFU, over 1,200 foreign companies have registered, with the majority being in the information and communication technology sector, indicating the successful implementation of the government’s new strategy for attracting international businesses and talent in the technology field.

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