Cyprus climbs global innovation rankings with strong business edge

Cyprus ranked 15th globally and first in Southern Europe for its innovation business environment, according to the Innovators Business Environment Index 2026 published by StartupBlink.

The ranking positions Cyprus as an emerging innovation hub, reflecting strong performance across taxation, incentives and overall market attractiveness.

According to the index, Cyprus achieved first place in the European Union for taxation, while ranking 10th worldwide on the same indicator.

The country was also placed second in the European Union for business incentives, highlighting highly attractive fiscal and financial conditions for innovative companies.

Cyprus ranked within the top 25 per cent worldwide for key indicators, including corporate tax, capital gains tax and dividend tax rates.

In an announcement accompanying the latest rankings, the Research and Innovation Foundation (RIF) said the results “demonstrate that Cyprus has strong foundations for further growth“, in terms of innovation-driven activity.

The foundation added that, according to the report, “Cyprus offers one of the most competitive environments for innovation“.

The Research and Innovation Foundation further stated that “its initiatives facilitate scientific and commercial endeavours“.

The Innovators Business Environment Index assesses more than 125 countries, providing a broad international comparison of innovation conditions.

The index evaluates countries across 30 parameters, focusing on operational ease, incentives and global market perception, reinforcing Cyprus’ progress as a innovation destination.