Tanya Romanyukha on Limassol’s tech evolution and what's needed for Cyprus to maintain its position

Tanya Romanyukha, General Manager of TechIsland, reflects on Limassol’s remarkable tech evolution and highlights what needs to be done for Cyprus to maintain its position as a digital leader in the Mediterranean and beyond.

She points out among other things that Cyprus' tech industry has had one of the highest growth rates in the EU over the past decade. As Europe redefines its digital agenda, Romanyukha reveals what role Cyprus – and Limassol in particular – can play in the emerging tech geography of Europe and the Eastern Mediterranean.

Limassol has become a magnet for international companies and talent. In your view, what sets it apart as a base for innovation, investment and forward-thinking development?

Limassol stands out because it blends professional opportunity with an exceptional quality of life. It is a multicultural business centre by the sea, with convenient proximity to both of the island’s international airports. In essence, Limassol offers a unique value proposition: the ability to pursue ambitious business goals without compromising on lifestyle. This work-life balance is increasingly sought after by professionals and high-growth companies alike.

How has Limassol’s urban and business ecosystem evolved to better support the tech sector and where is there still room for growth?

Limassol continues to evolve in response to its growing role as a regional tech hub. However, there is still significant room for improvement – especially in educational infrastructure. Capacity in private schools remains a pressing issue. Highly skilled professionals, investors and entrepreneurs often relocate to Cyprus with their families and access to high-quality education is a critical factor in their decision-making. When suitable schooling options are limited, it becomes a major deterrent, reducing Cyprus’ overall competitiveness as a destination for top-tier tech talent and investment. Additionally, as Limassol’s population grows, so does the need for expanded social infrastructure – such as museums, hospitals and sports facilities – to maintain a high quality of life. To encourage investment in these essential sectors, we recommend introducing targeted incentives. Specifically, since institutions like schools, hospitals and museums typically do not charge VAT to customers, reducing VAT-related expenses for developers and operators in these sectors would help attract the necessary investment to support sustainable urban growth.

Limassol’s tech sector has expanded rapidly in recent years, attracting a diverse mix of international and local companies and professionals. How has this symbiosis reshaped the city’s business culture and what impact has it had on Limassol’s broader social and civic fabric?

Socially, Limassol has evolved into a truly cosmopolitan hub. The presence of international schools, cultural festivals and inclusive community events has fostered a dynamic environment of cross-cultural exchange and integration. This enhances the city’s appeal and strengthens Cyprus’ broader value proposition as a modern, globally connected destination. Importantly, this transformation is contributing to a reversal of the longstanding “brain drain.” For years, many Cypriots pursued education abroad and then remained overseas in search of better career opportunities – multinational companies, higher salaries and clearer pathways for professional growth. Today, Cyprus – and especially Limassol – offers all that and more. With a thriving tech ecosystem, the presence of global companies, competitive compensation and an exceptional quality of life, Cyprus has become a place where professionals can build world-class careers while staying close to home. This growing ecosystem supports not only economic growth but also national efforts to attract and retain top local talent.

No ecosystem matures without challenges. Where do you see key gaps or missed opportunities in Cyprus’ tech evolution that must be addressed if the country is to unlock its full potential?

One major gap is Cyprus’ continued exclusion from the Schengen Zone – a limitation that, if resolved by 2026, could significantly boost the country’s appeal. Unlike other tech-forward EU countries such as Portugal or Estonia, Cyprus faces mobility constraints that affect talent attraction, partnership development and market access. In the fast-paced, global tech industry, seamless travel is a baseline requirement for competitiveness. Infrastructure is another pressing concern: affordable housing in key urban centres like Limassol is increasingly scarce, making it difficult for professionals and their families to relocate or settle long-term. The shortage of modern, flexible office space – including coworking hubs and shared R&D labs for prototyping – also limits the ecosystem’s capacity to support early-stage and scaling companies. Additionally, Cyprus lacks robust acceleration programmes tailored to early-stage startups. While there are growing communities and networks, structured programmes that provide mentorship, capital access and market entry support remain underdeveloped. Strengthening this layer of the ecosystem is crucial to nurturing the next generation of innovative, high-growth companies. Addressing these gaps – mobility, infrastructure and startup support – will be key to unlocking Cyprus’ full tech potential.

As Europe redefines its digital agenda, what role can Cyprus – and Limassol in particular – play in the emerging tech geography of Europe and the Eastern Mediterranean?

Cyprus is a growing force, with one of the highest technology sector growth rates in Europe over the past decade. Cyprus ranks 1st in the EU27 for ICT sector growth between 2015 and 2024, with a remarkable 347% increase in Gross Value Added (GVA), far surpassing the EU average of 74%, and 5th in the EU for GVA per ICT employee. With the tech sector contributing 16% to Cyprus’ total GVA – well above the EU average – the country is well-positioned to act as a gateway between Europe and neighbouring regions. Limassol, in particular, has emerged as the anchor city of this transformation, offering both business competitiveness and an attractive lifestyle. At the same time, we’re seeing a shift in international dynamics. The UK has abolished non-dom status and other countries like Lithuania are exploring increased taxation for foreign investors. In contrast, Cyprus has maintained favourable tax policies and a stable regulatory environment, making it an increasingly attractive destination for tech companies and investors. Thanks to the strong community that has developed here, Cyprus – and Limassol specifically – is now being seriously considered alongside global hubs like Dubai and Singapore. To sustain and build on this momentum, Cyprus must continue to leverage its competitive advantages. This includes preserving the non-dom regime, maintaining a business-friendly tax framework and investing in quality-of-life infrastructure to support the growing tech population. If we stay focused, Cyprus won’t just keep up with Europe’s digital agenda – it will help lead it.

• This article was first published in GOLD magazine’s The Limassol Issue in April. To view it click here