TechIsland Summit examines: ‘Space to Grow: Expanding Education for a Thriving Economy’

As Cyprus competes to attract international talent and investment, the capacity of its private education system has become a key barrier, with a panel at the TechIsland Summit in Limassol exploring targeted solutions, policy incentives, and practical pathways to support the expansion of private schools.

Drawing on international examples, the discussion focused on how Cyprus can respond to growing demand and create a more supportive environment for families, investors, and long-term economic growth.

The panel was made up of Constantinos Ioannou, Minister of Interior, Republic of Cyprus, Nicholas Papadopoulos, Member of the House of Representatives, Mila Marochkina, CEO, SPORTSOFT, and Alexis Andreou, Director, Globeducate Cyprus. The panel was moderated by Angelos Gregoriades, Member of the Board of Directors of TechIsland.

Beginning the discussion, Gregoriades noted, “In Cyprus we have a fast-growing community of tech companies, international investors and highly skilled individuals who have chosen Cyprus as their home base. And while we’re excited by the momentum in the tech sector, we are equally aware of the structural limitations that could jeopardize this progress including the capacity of our private education system.”

“Why is this such a critical issue?,” he continued,”Because access to high-quality, internationally-oriented education is one of the top priorities for the professionals and entrepreneurs we’re attracting. These individuals don’t relocate alone. According to a recent TechIsland survey conducted in collaboration with IMR/UNIC, nearly 60% of highly skilled individuals moving to Cyprus bring their children, with an average of two children per employee.”

Gregoriades noted that in just four years—between 2020 and 2024—from a sample of only 50 companies, more than 2,600 children arrived with their parents. This has placed tremendous pressure on an already stretched private school system, he said.

“And this is only the beginning. Our projections show that 68% of international companies plan to relocate an average of 49 new employees per company over the next five years. This means thousands more children will soon need seats in schools that are already full. At TechIsland, we’ve been working closely with the government and other stakeholders to address this challenge. From building permits and operational barriers to teacher recruitment and investment incentives, we’re looking at every lever we can pull to help scale the system,” he said.

Gregoriades noted that, the panel would explore what actions are already underway, what policy shifts are still needed, and how we can work together to build the education infrastructure Cyprus needs to remain globally competitive.

Underlining the importance of education, Ioannou noted that a new government scheme was already underway to help existing schools expand their infrastructure by up to 25% under certain conditions. This, he explained was part of the wider infrastructure changes required to facilitate more places for pupils.

He noted that the scheme provided a faster way for schools to increase their capacity, including through the new, more streamline, means to increase their building coefficient.

He noted that a number of applications were already pending.

Marochkina shared her experience in applying for permits for new schools, noting that while a difficult process, she had seen improvements over the past two years.

She suggested that the best incentive had been permission for changes to zones, opening the way for the construction of schools.

Marochkina hoped that speedier procedures would be put in place for large investments, including schools, to be created.

She also noted investors in schools were now burdened by VAT even while investing millions, something that investors in other sectors did not experience.

Marochkina added that the procedures related to bringing in expert personnel was also challenging.

She likened the stakeholders involved in the creation of schools as currently being like musicians all playing different instruments, suggesting an online platform be created to outline the procedures clearly for investors.

Speaking as an operator of international schools, Andreou noted the importance of financial incentives for investors in schools. He also noted that schools were looking for experienced, native English-speakers and that being able to more easily obtain work permits for the right type of people was important. Andreou pointed out that there were obstacles created by criteria that made it difficult to compare overseas qualifications for educators to those awarded in Cyprus or Greece.

Papadopoulos, on his part, noted the importance of the tech sector to Cyprus, including its growing role in the country’s GDP. He noted that one way to ensure the sector continued was to facilitate the legal immigration of highly-skilled professionals.

Education, he continued, was an important part of the quality of life Cyprus could offer these professionals. He noted that VAT-linked incentives as well as the streamlining of procedures, from visas to citizenship, were crucial steps.

“We strongly support the reduction of VAT on the construction of buildings that will be used for education, sports and culture,” he said.

“I think our mantra should be, ‘Come to the island for the money, stay for the quality of life,’” Papadopoulos added.

Ioannou said there were currently 20 permits sought for schools around Cyprus, one of which had already been approved.

The Minister noted that a law had been passed, since earlier this year, that an investment for 20 million euro or more or creating 75 new jobs is considered to be a strategic investment and enjoy the benefits of speeded up procedures and one-stop-shop points of contact. He encouraged schools to apply for this status.

On VAT incentives for schools, Ioannou said he agreed with Papadopoulos, joking “now we need to persuade the Minister of Finance,” and added that incentives should also be extended to include housing.

Gregoriades asked if it would be possible for the state to rent land to schools to avoid issues created by schools being located in the same locations, creating traffic and other problems.

He underlined that zoning changes were also being considered.

Ioannou went on to reveal that legislation was being submitted to the Attorney General towards the government allocating land for education, including all levels of schools and not just universities. The Minister indicated he hoped to have a response from the Attorney General by June.

Marochkina reiterated the importance of making it easier to obtain and retain the necessary teaching staff while also underlining the importance of infrastructure connected to schools, including roads. She also suggested that the state help with the ongoing training of educators.

On his part Andreou shared Globeducate’s experiences overseas and how these compared to what was being experienced in Cyprus. He noted that many of the problems were the same but appeared more acutely in Cyprus due to rapid growth and the resulting needs.

Andreou also suggested that it may be wiser to concentrate on and develop existing incentives rather than simply adding more.

Papadopoulos, in turn, went on to note that any strategy for Cyprus had to include a strategy for the tech sector.

Ioannou, concluded by noting the importance of Cyprus’ upcoming inclusion in the Schengen Zone and its anticipated impact, along with efforts to improve the provision of housing and providing investors with one-stop-shop facilities.