Invest Cyprus drives transformation with targeted incentives, partnerships and a vision for a tech-forward future
What specific measures is Invest Cyprus currently taking to position Cyprus as a leading fintech hub?
Our strategy for 2024-2026 focuses on three key areas: first establishing Cyprus as a leading International Business & Financial Center, second driving growth and investment in High Technology, Digital Innovation, and Education including start-ups and research & development and third attract and facilitate investments into strategic projects. In this context, we provide comprehensive support to companies at every stage of their investment journey, advocate for regulatory reforms that foster a business-friendly environment and offer ongoing after-care services to ensure long-term success. A cornerstone of these focus areas is the attraction of fintech companies to our country.
Through global events, forums, strategic meetings, we promote Cyprus as a top destination for businesses and investors. We have strengthened our presence in 19 key markets, including financial hubs like London, New York, Abu Dhabi, Riyadh and emerging markets in Israel, Lebanon, Egypt, and Jordan. Additionally, Cyprus signed important investment agreements with India, Saudi Arabia, Jordan and Brazil in an effort to foster business and investment collaboration and open new investment opportunities in these dynamic markets.
In parallel, we actively contribute to shaping digital transformation through our involvement in the Digital Cooperation Organisation (DCO), in collaboration with the Deputy Ministry of Innovation as well as the Chief Scientist and Research and Innovation Foundation, reinforcing Cyprus’ leadership in the global digital economy. As a member of the regional steering committee of the World Association of Investment Promotion Agencies (WAIPA) as well as the EuroMediterranean Investment Network ANIMA and World Association of Private Public Partnerships (WAPPP) we further boost Cyprus’ international appeal.
Could you outline the incentives available to fintech companies considering establishing operations in Cyprus?
Cyprus is an increasingly attractive hub for fintech companies, offering a business-friendly environment, competitive 12.5 per cent corporate tax rate – the lowest in the EU – and extensive double tax treaties with over 65 countries. Strategic proximity to Europe, Africa and Asia provides access to diverse markets, while robust digital infrastructure and a strong regulatory framework support international operation. Additional incentives, such as a 2.5 per cent tax on profits under the IP Box Regime and no capital gains tax on securities sales, make Cyprus especially advantageous for fintech firms. A skilled, English-speaking workforce further enhances its appeal as a tech and innovation hub.
Another important advantage for fintech companies in Cyprus is the regulatory certainty provided by its EU membership. This includes access to the Single Market and EU passporting rights, enabling firms licensed in Cyprus to operate seamlessly across 27 member states. With strong oversight from CySEC and the Central Bank of Cyprus, the country aligns with key EU regulations such as MiFID II, PSD2, and the upcoming MiCA Regulation, creating a stable environment for fintech growth.
It is also important to recognise the broader economic developments that positively impact Cyprus’s appeal. There have been major upgrades from all leading credit rating agencies, including Moody’s recent upgrade of the Cyprus economy to A3, which is a significant recognition of the country’s economic resilience and growth potential. Additionally the centres of excellence that operate successfully in Cyprus together with the support that they received from EU funds further enrich collaborations in the fintech space between research instututions, academia, private sector and government.
How does Invest Cyprus support fintech startups, particularly in terms of regulatory guidance and networking?
Invest Cyprus supports fintech startups by offering comprehensive services at every stage of their investment journey. We provide regulatory guidance, access to key networks, and aftercare services to ensure long-term success. Through partnerships with institutions like the Research and Innovation Foundation (RIF), we help develop initiatives like the PRE-SEED programme, which offers funding to support startup growth. Additionally, we collaborate with the deputy ministry of research, innovation, and digital policy to strengthen Cyprus’ digital ecosystem and attract global technology entrepreneurs, contributing to the country’s National Vision 2035.
How does Cyprus’ fintech ecosystem compare to those in other European nations, and what unique advantages does it offer?
The technology sector, which includes fintech, has seen significant growth in Cyprus, with investments reaching €3.3 billion in 2022 and €4 billion in 2023, contributing 15 per cent to the GDP. Cyprus ranks fourth in the EU for technology sector development, with over 800 tech companies, including numerous fintech firms, establishing a strong presence. This growth is fuelled by international companies and talent, making the sector a key contributor to the economy, accounting for over 10 per cent of GDP. Invest Cyprus supports this expansion by creating a business-friendly environment, attracting global investment, and providing essential support to both technology and fintech companies. The overall success of the sector highlights Cyprus’s emerging role as a leading hub for innovation in Europe and the broader region.
How does Invest Cyprus address the challenges fintech firms may face with compliance and regulations?
Invest Cyprus together with its close and important collaborators like the Business Facilitation Unit of the ministry of energy, commerce and industry, the migration department of the ministry of interior operate as a one-stop-shop, offering complimentary tailored information and support on all aspects of setting up and running a business in Cyprus, throughout the entire investment journey, ensuring compliance with Cyprus’s regulatory framework and EU legislation. We connect businesses with the relevant authorities to guide them through the process of establishing operations. Compliance is monitored by the Cyprus Securities and Exchange Commission (CySEC) and the Central Bank of Cyprus, based on the services provided by the fintech firms. These bodies enforce high standards of transparency, consumer protection, and market integrity, aligned with EU regulations and Standards. We also emphasise the importance of continuous compliance, not only as a legal requirement but as a key factor in reinforcing Cyprus’s reputation as a leading fintech hub in the EU.
What are some success stories of fintech companies that have invested in Cyprus, and how has Invest Cyprus supported their growth?
Murex and MUFG are some of the success stories. Murex a top tier multinational company and one of the world’s best employers invested in to setting up an office and has more than 200 people working in Nicosia while MUFG one of the most reputable and healthiest Financial Groups internationally also invested into setting up an office and operates successfully from Limassol.
Looking to the future, what are Invest Cyprus’ top three priorities for growing the fintech sector over the next five years?
Looking ahead, our focus is on driving fintech growth by positioning Cyprus as a leading tech & innovation hub. We aim to expand partnerships across US, Europe, Middle East, Africa and Asia to foster cross-border collaboration and attract global talent and investment. With Cyprus’ competitive business environment, strategic location, and favourable tax regime, we are confident it will remain an ideal destination for fintech companies. Additionally, we will offer our guidance and expertise to support key reforms as they are phased in, ensuring the necessary regulatory updates and incentives are in place. By collaborating with stakeholders and listening to the needs of the industry, we aim to foster synergies that enhance digital infrastructure and solidify Cyprus as a top destination for fintech’s and the broader technology sector.
Marios Tannousis holds the post of CEO at Invest Cyprus. He has more than twenty five years of international corporate experience, with twelve years in the international banking and financial services group Societe Generale, where he served at various key posts.
He is a Member of the Board of the European Fund and Asset Management Association (EFAMA) and co-founder and member of the Cyprus Investment Funds Association (CIFA). He also served as President of the Cyprus Finance & Leasing Association and Board Member in various other organizations and bodies.
He is a Member of the Chartered Institute for Securities and Investment (CISI) and holds a Bachelor’s degree in Economics from Rutgers University, New Jersey, US and an MBA from Mankato State University (MSU), Minnesota, US. He has also completed the FinTech programme of Oxford University, Said Business School and the program on Transformational Leadership of the University of Cambridge Judge Business School.
He is certified for offering investment services and has a special interest in Economic Development through Investments especially in Banking, Financial Services, FinTech Investment Funds and Private Public Partnerships.
He represents Cyprus in various international and European Conferences.
