Cyprus is growing as a top choice for foreign direct investment (FDI) in Europe, said Invest Cyprus CEO Marios Tannousis on Thursday.
Tannousis addressed an international audience at the 10th International Funds Summit & Expo in Nicosia, presenting the island’s unique advantages, including financing schemes and incentives for global investors.
Tannousis explained that Cyprus’ strategic location at the crossroads of Europe, Asia, and Africa offers investors access to markets with over a billion consumers.
“Cyprus is a regional hub for technology and innovation, with an excellent geostrategic position and a favourable business environment,” he said.
He added that “Cyprus has been a full member of the European Union since 2004 and of the Eurozone since 2008, offering investors access to the Single European Market, which makes it even more attractive to multinational companies and investors”.
Cyprus’ network of trade agreements, with over 40 within the EU and 65 double tax treaties worldwide, also adds to its appeal.
Tannousis said these agreements give investors room to expand their activities and tap into significant tax concessions, which can boost both liquidity and returns.
He described Cyprus as an attractive choice for multinational companies from Asia and the Middle East aiming to set up European headquarters.
The event also spotlighted Cyprus’ drive to foster innovation, led by Theodoros Loukaidis, Director General of the Research and Innovation Foundation (RIF).
Loukaidis described Cyprus as “a market for technology and innovation, with an excellent geostrategic position and a favourable business environment.”
Over the past five years, more than €352.5 million has flowed into Cypriot startups and scaleups, with an additional €40 million from venture capital funds supporting innovation.
“The government has built a progressive framework for supporting growing companies,” he said, outlining incentives such as a 50 per cent tax reduction on investments in certified innovative firms and a 120 per cent deduction on Research and Development (R&D) expenses.
The IP regime, which applies a 2.5 per cent tax on intellectual property income, further attracts technology-driven businesses.
To bring in global talent, Cyprus has rolled out the Startup Visa Scheme and the Scientific Visa Scheme, which streamline entry for foreign entrepreneurs and researchers.
Loukaidis pointed to examples of mixed finance projects now benefiting from these initiatives, including ventures in radiation detection and environmental intelligence, adding that Cyprus is steadily becoming an innovation hub in the Eastern Mediterranean.
Today, Cyprus’ innovation ecosystem includes more than 60 active investors, 140 technology firms, 500 startups, and 15 investment institutions.
Loukaidis said programmes from entities like RIF add further support by enabling Cypriot companies to participate in European projects and facilitating knowledge sharing, reinforcing Cyprus’ role as a centre for technology and innovation investment.
Moreover, Loukaidis underlined Cyprus’ advantages for investors, noting the returns made possible through its tax concessions and blended finance models.
“Cyprus is a market where every euro of investment has a higher return,” he concluded.