You’ve heard of Silicon Valley, but what about Silicon Seaside? This go-getting Mediterranean island is offering not just great jobs in tech and for digital nomads, but encouraging the kind of investment that will improve infrastructure across the country.
While tourism has always been Cyprus’s main asset, and it aims to continue that, it has also started to build up its tech sector growth strategy. Cyprus is determined to take on other European tech hub hotspots such as Munich and Lisbon to attract big investment from high-profile companies. Over recent months the Cyprus government has been touting the positives of the island at tech trade shows in the United States.
High-tech companies like NRC, Amdocs, and Melsoft Games have set up bases in Cyprus, and it’s easy to see why, too. Financially, Cyprus offers low business costs and a particularly favourable tax rate for tech startups. All of this is set in a stable economy. The economy grew by 3.4% last year, far above the average in Europe. Digital services here have grown by over 16%. ““We’re eliminating red tape and saving time for both citizens and businesses,” said the president of Cyprus, Nicos Christodoulides last week.
Here are five reasons why Cyprus could be your own new centre of business within the EU, whether you’re relocating as a digital nomad or opening a branch of your company..
Geographical location
Cyprus is strategically positioned at the crossroads of Europe, the Middle East and Africa. It’s close to eastern Europe, the UAE and lops a few hours off the flight time to Asia too. Even if you’re not travelling, Cyprus has also been working on its high-speed internet and digital communication capabilities over recent years, and these are now at high levels, appealing to any tech investor.
Cyprus’s is at the crossroads
European Union membership
Cyprus is an EU member and the perfect European base for potential tech investment companies. It is currently in talks to join the Schengen Area. New tech companies established in Cyprus have free access to the European Single Market and will benefit from harmonized European regulations/standards.
Government encouragement
The Cyprus government has made its quest for Cyprus to become a thriving tech centre one of its major projects. The Cyprus President has sometimes prioritized tech development over Cyprus’s domestic policies, as seen by his recent, ongoing visits to Silicon Valley, Open AI and many other tech companies. This is a new phenomenon for Cyprus, as the country has often lain quietly unambitious in the shadow of its sister country, Greece. The President has made substantial gains from these visits, and Cyprus has become confident that it will soon attract global attention in the tech field.
There are also appealing practical measures initiated by the government toward new tech investment companies, like the Cyprus Startup Visa Scheme and the Cyprus Equity Fund. Intended for non-European business starters of any discipline, the CSVS scheme facilitates the establishment of new businesses in Cyprus and offers visa extensions based on successful startups, and the CEF offers financial opportunities for new start-ups.
Advantageous tax measures
The government’s tax measures are advantageous, too. Cyprus consistently has a particularly low corporate tax rate of 12.5%. That means reduced financial outlay for new tech companies. In addition to actively encouraging tech entrepreneurs to invest in Cyprus, there has been a strong emphasis this month on setting up substantial tech research and development here. Intellectual property income is tax-exempt, opening Cyprus up to competitive tech research and development company establishment.
Cyprus is open for business – the Limassol skyline
Specialised local skilled talent
The young Cypriot workforce is particularly skilled in STEM and digital literacy, so there is no lack of a skilled workforce here. Likewise, a glance at LinkedIn reveals several fintech, health tech and blockchain local startups, fueled partly by The Cyprus Startup Association that promotes local startups and offers resources. Local startups can operate alongside international startups making for a balanced tech picture where both Cyprus and international parties can benefit competitively.
Cyprus certainly has all the ingredients for a bright tech future, and it is fast becoming a tech hub for local and international tech investment. Its tech future is a clear mission for the Cyprus government, which is actively pursuing a strategic path via a range of tools it has made available to established global tech companies and new tech start-ups alike.
