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The Development of the IT Sector and Startups in Cyprus in 2024
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The Republic of Cyprus continues to grow rapidly as a hub for technological innovation and startups, becoming an attractive destination for foreign investors.
In 2024, this trend is gaining momentum, positioning Cyprus as an ideal platform for entrepreneurs and IT professionals.
Leading companies in areas such as regtech, cybersecurity, and the gaming industry are flourishing in Cyprus. The country is also making significant strides in blockchain technology, with the University of Nicosia pioneering the world’s first master’s degree in blockchain and digital currency, available globally.
Global Innovation Index 2024
One of the key indicators of Cyprus’ success in technology and innovation is its participation in the Global Innovation Index, published by the World Intellectual Property Organization (WIPO).
In 2024, Cyprus ranked 27th out of 133 countries, moving up one place from the previous year. This ranking is based on over 80 indicators, showcasing positive changes in the country’s innovation landscape and increased international recognition of Cyprus’ efforts in technology and startups.
Cyprus has shown the following results in key categories:
17th in business development
20th in knowledge and technology output
26th in market sophistication
45th in infrastructure
46th in human capital and research
In 2024, Cyprus demonstrated significant growth in developing its technological ecosystem, strengthening its position on the international stage.
This makes Cyprus one of the key jurisdictions for the relocation of IT companies, offering them all the necessary conditions for successful business operations.
Another key factor is the favorable legal framework and tax incentives for IT companies in Cyprus, creating ideal conditions for conducting business in the information and communication technology sector. The IP Box regime deserves special attention. This regime allows a significant reduction in corporate tax—from 12.5% to just 2.5%—making Cyprus particularly attractive for companies working in intellectual property and innovation. You can learn more about the IP Box regime in our article.
Trends and Perspectives
Cyprus continues to strengthen its position in the rankings of innovative economies thanks to active government support, investments in research and development, and the stimulation of entrepreneurial activity.
The Deputy Minister of Research, Innovation, and Digital Policy of Cyprus, Nikodemos Damianou, noted that the information and communication technology (ICT) sector in Cyprus is rapidly developing and already accounts for over 10% of the country’s GDP. This growth has accelerated in recent years due to attractive incentives that encourage the relocation of ICT companies to Cyprus. Major tech corporations have already chosen the island as the base for their regional or global headquarters, and Cyprus is becoming a leading hub for fintech. More than 400 startups and innovative companies are already operating in Cyprus. Nikodemos Damianou emphasized, “Our goal to turn Cyprus into a regional center of technology and innovation is becoming a reality as the government invests in our digital economy as a top priority.”
During the 2021–2027 program period, the Cyprus government plans to continue its development path by allocating €150 million to support research, innovation projects, and infrastructure modernization.
Cyprus’ technological ecosystem continues to grow and evolve, providing investors with vast opportunities to develop innovative projects. Favorable business conditions, government support, and high rankings in key categories make Cyprus an attractive destination for startups and tech companies.
If you are planning to open an IT company or startup in Cyprus, our team at Feod Group is ready to provide full legal support and consultations!
Elena Georghiou is the founder of Feod Group, a company that has been successfully operating since 1992. With over 30 years of experience, she specializes in corporate law, international taxation, immigration law, investment, and financial consulting....
Elena Georghiou is the founder of Feod Group, a company that has been successfully operating since 1992. With over 30 years of experience, she specializes in corporate law, international taxation, immigration law, investment, and financial consulting.
The Republic of Cyprus continues to grow rapidly as a hub for technological innovation and startups, becoming an attractive destination for foreign investors.
