Cyprus has consistently emerged as one of the most attractive destinations for high-value entrepreneurs and investors, offering a unique combination of strategic location, developed infrastructure, modern legal framework and competitive tax regime.
With a strong business ecosystem, stable political environment and a quality of life rarely found elsewhere, the island is an ideal base for investment management and international business activity.
These advantages were analysed by George Hepis, Manager IB Network Limassol/Paphos of Bank of Cyprus, in his presentation at the 3rd Cyprus International Technology Relocation Summit, entitled 'Why Cyprus? Why now?'
Hepis presented the main tax features that make Cyprus internationally competitive, starting from the low corporate tax rate of 12.5% (which is expected to increase to 15%, remaining very attractive within the EU), the 0% withholding tax on dividends and the particularly favorable IP Box regime, with an effective tax rate of up to 2.5%.
At the same time, he pointed out the tax incentives for high-paid professionals, as well as the non-resident status that enhances tax flexibility.
Cyprus, Hepis stressed, functions as a gateway to the markets of the Eurozone, the Middle East and third countries, thanks to the Anglo-Saxon legal system, the widespread use of the English language and the network of over 70 double taxation avoidance agreements.
Bank of Cyprus, recognising the potential of the technology sector, has created specialised “Tech Hub Units” to support the rapidly growing industry, he said, providing details.
In 2026, the implementation of customer identification (KYC) procedures through artificial intelligence is expected, he added.
Referring to human capital, Hepis presented data showing that the technology sector in Cyprus supports over 62,000 full-time jobs, while the flow of highly skilled professionals is increasing at a rapid pace.
For the period 2023–2024 alone, 48,212 residence permits were issued for workers and their families, with 43.6% relating to technology professionals and 52% family reunification.
As he explained, programs such as the EU Blue Card and fast-track licensing procedures make Cyprus particularly attractive for skilled professionals. Most relocations involve professionals from Russia, Ukraine and Israel, which demonstrates the island's international appeal.
In terms of quality of life, Hepis highlighted the unique Mediterranean work-life balance: security, high-quality healthcare system, 93% fiber optic coverage and excellent infrastructure. “Cyprus is not just a place for relocation,” he said, “but a strategic development platform.”
The technology sector currently contributes €8.5 billion directly and indirectly to the country's GDP, with more than 700 technology companies already established with the support of the Bank of Cyprus and Invest Cyprus, he stressed, saying that the most dynamic sectors are gaming (No. 2 globally), fintech (No. 3 in Southern Europe) and blockchain (No. 9 in the EU).
As Hepis concluded, this success is the result of private and public sector collaboration, with initiatives such as the Startup Visa and the Business Facilitation Unit (BFU) "further enhancing the country's attractiveness for international investors."
(Source: InBusinessNews)
