Establishing Cyprus as a leading European base for international technology companies by aligning policy, partnerships and incentives

Invest Cyprus is positioning the island as a leading technology investment hub through strategic partnerships, targeted incentives, and a strong focus on innovation and digital transformation. In this interview with the CEO Marios Tannousis, we explore their proactive approach to attracting international tech companies, fostering local innovation and ensuring Cyprus remains competitive in the global tech landscape.

What specific steps is Invest Cyprus taking to position the island as a tech investment hub?

At Invest Cyprus, we are committed to establishing Cyprus as a leading European base for international technology companies. Our strategy is clear and focused. We actively promote the country’s many advantages, such as its European Union membership, robust legal framework, competitive tax regime and highly skilled workforce. We work closely with the government to shape policies that support innovation and digital transformation, ensuring that the business environment remains attractive and forward-looking. Our team is also strengthening Cyprus’ international presence by participating in major technology and investment forums around the world, targeted meetings and provide tailor made solutions to tech companies. At the same time, we are dedicated to developing a vibrant local tech ecosystem by connecting investors with startups and talented professionals across the island.

How are you targeting international tech companies and startups to relocate or expand to Cyprus?

We take a proactive, personalised approach to attracting international tech companies and startups. Our team works directly with businesses to understand their specific needs and offer tailored solutions that ensure a smooth transition to Cyprus. We position the country as a gateway to both the European Union and the broader EMEA region, emphasising its strategic location and strong connectivity. In addition, we highlight the island’s high quality of life, safety, and dynamic talent pool.

For startups, we showcase the ease of doing business, fast-track mechanisms, and the collaborative ecosystem that fosters innovation and growth. This includes initiatives such as the startup visa and digital nomad programmes, as well as funding opportunities through the Research and Innovation Foundation.

Strategic partnerships with India, the Gulf, and the United States have become key drivers in reshaping Cyprus’ foreign direct investment landscape. Strengthened ties with India and the US have attracted companies such as LTIMindtree, Thomas Cook India, Drone Destination, BCentriqe, Arisant, Tenstorrent, and Plug & Play, reflecting growing investor confidence.  The historic visit of Indian Prime Minister Narendra Modi to Cyprus in June 2025 marked a turning point in bilateral relations, while President Christodoulides’ recent visit to the US further deepened economic and strategic cooperation with the American administration.

Beyond these key regions, Invest Cyprus is actively pursuing investment opportunities in emerging markets, including the EU, UK, Israel, and Lebanon. In collaboration with the Ministry of Foreign Affairs and other partners, and with the support of Cyprus’ Ambassador to Brazil, Dr Vasilios Philippou, we have signed the first agreements with Brazil. We have also initiated collaborations with major Latin American multinationals investing in Europe, including Petrobras in the energy sector and Embraer in aviation.

What incentives or support structures are in place for foreign tech investors?

Cyprus offers a comprehensive range of incentives and support structures for foreign tech investors. The country’s corporate tax rate is among the most competitive in Europe, and our intellectual property box regime provides significant tax benefits for qualifying income. The government has also introduced a dedicated strategy to attract international technology companies, which includes fast-track work permits for highly skilled professionals and simplified company setup procedures.

In addition, Cyprus offers generous grants and equity investments for innovative startups and small to medium enterprises. At Invest Cyprus, we serve as a single point of contact, guiding investors through every step of the process, from licensing to relocation and ongoing support. The recently inaugurated Business Support Centre of the ministry of energy, commerce and industry – in which Invest Cyprus also has participation – is expected to further expedite processes and time to market for investment projects.

How are you collaborating with local stakeholders such as universities, incubators and government agencies to support tech ecosystem growth?

We believe that building a strong technology ecosystem requires close collaboration with a wide range of local stakeholders. Invest Cyprus works hand in hand with universities to connect international investors with local research expertise and emerging talent. We actively support partnerships between Cypriot incubators and accelerators and their counterparts abroad, fostering knowledge exchange and innovation. Our close cooperation with government departments ensures that investment promotion efforts are fully aligned with national priorities.

By bridging the gap between global investors and the local innovation community, we help create opportunities that benefit everyone involved. We are fully aligned with the deputy ministry of research, innovation and digital policy and work in joining forces where is needed. Significant work in being done in this respect with the Digital Corporation Organisation, the Startup-Clusters Saudi Arabia and India as well as collaboration with other countries and projects. Very important is the collaboration with the non-profit organisation Tech Island with which we have an MoU, and Doers Summit, AMCHAM Cyprus, CITEA as well as other important tech or tech related organisations.

What results have you seen so far in terms of tech-related foreign direct investment, and what sectors are showing the most interest?

A recent KPMG report shows that the tech and tech-related sector is now the leading contributor to Cyprus’ GDP, accounting for 16 per cent and generating over €4 billion annually. This influx supports thousands of new jobs, with the numbers expected to keep rising.

In recent years, Cyprus has attracted growing interest from technology companies across Europe, the Middle East, and beyond. Firms specialising in software development, cybersecurity, fintech, and blockchain have established a regional base or relocated key teams to the island.

Startups are also benefiting from Cyprus’ supportive business environment and easy access to European markets. This momentum is driving job creation, boosting salaries, and contributing to a more resilient economy – further reinforcing Cyprus’ emergence as a regional technology hub.

It is estimated that more than 800 tech or tech-related companies are currently operating in Cyprus, and the sector continues to expand. In 2024 alone, foreign direct investment (FDI) in information and communication technology (ICT) grew by over 200 per cent, while investment in scientific and technical activities increased by more than 40 per cent. Today, the ICT sector supports over 62,000 jobs.

How does Invest Cyprus plan to stay competitive as other countries also push for tech sector investment?

Foreign direct investment (FDI) landscape will be influenced by several defining forces. These include rapid advancements in artificial intelligence (AI) and advanced data analytics, which are transforming how businesses operate and make strategic decisions. Alongside these technological innovations, global economic shifts, evolving regulatory frameworks and geopolitical developments will continue to shape investment patterns and drive investor confidence.

Our strong strategic focus on building partnerships with nations and the investor community will serve to reinforce its position as a leading hub within the region’s vibrant and evolving FDI landscape. Its commitment to adopting cutting-edge technologies, combined with a robust legal framework and business-friendly environment, provides a clear competitive advantage.

Our approach is to remain agile and responsive to market needs, continuously seeking feedback from investors and identifying areas for improvement. Cyprus combines the stability of an established European Union jurisdiction with the flexibility of a business-friendly environment. We are improving, and the progress is real.

Our GDP grew 3.4 per cent in 2024, outpacing the EU average. Unemployment dropped to 4.8 per cent. Public debt fell below 65 per cent of GDP. In addition our sovereign credit rating is now A with FDI recognised as a core strength.

By supporting ongoing digital transformation and innovation, we are confident that Cyprus will continue to stand out as a destination where technology companies can thrive and grow for years to come. Initiatives like Minds in Cyprus, with strong foreign company participation, are helping bridge the talent gap.

Our strategy aligns fully with the government’s goals: we aim to use FDI to build a more diversified economy by attracting high-value investments and cultivating new sectors.