Cyprus is rapidly solidifying its position as a key hub for global business, with foreign investment reaching an impressive €3.2 billion in 2023 and creating 2,500 new jobs across diverse sectors. The country welcomed approximately 200 international companies in the first half of 2024 alone, underscoring its appeal as a destination for ambitious enterprises and a testament to Cyprus’ growing appeal as a headquartering (HQ) destination for global businesses. High-profile global companies are currently exploring opportunities to further expand their operations in Cyprus by 2025. While specific plans remain under wraps, these developments signal a bright future for the country’s economic landscape.

This surge in activity is not just attracting EU-based businesses, as a rising number of non-EU companies are strategically leveraging Cyprus as a gateway to the European market. Key factors driving this momentum include Cyprus’ strategic geographical location, robust regulatory framework, and EU membership, all of which offer unparalleled access to the EMEA region. In addition to these advantages, Cyprus has committed to building a state-of-the-art communications and technology infrastructure and rolling out incentives aimed at attracting companies from around the world – this combined with its safe and relaxed Mediterranean lifestyle that appeals to expatriate professionals and their families, makes Cyprus an attractive choice.

Ideal Operations Base

Cyprus has positioned itself as a streamlined and efficient business destination, offering companies a seamless environment for establishing and managing operations. The nation boasts cutting-edge infrastructure and telecommunications, a transparent regulatory and legal framework, and a robust financial and professional services sector built on decades of global expertise. Over 5,000 registered accountants and 800 accounting firms – including major global players – support business needs, alongside more than 4,000 lawyers and 700 law firms. Its EU-approved tax regime offers attractive incentives for both corporations and individuals, making Cyprus an efficient financial and operational base for business.

Another significant advantage is Cyprus’ cost-effectiveness. Set-up and operational expenses are markedly lower compared to more mature European markets – a critical factor for businesses navigating today’s challenging economic climate. Strategically located at the crossroads of Europe, Asia, and Africa, Cyprus provides direct access to the EU Single Market of over 500 million consumers and serves as a gateway to the wider region. Its advantageous time zone allows companies to seamlessly coordinate operations across continents, conducting business with Asia in the morning, Europe during the day, and the Americas in the afternoon.

The island's air connectivity is exceptional, with two international airports linking Cyprus to major European cities and key destinations in Asia, North Africa, and the Middle East. Additionally, its modern ports and logistics infrastructure support diverse business operations, further enhancing its appeal as a regional hub.

Cyprus offers stability and security as an EU jurisdiction in a volatile region, making it an ideal base for regional headquarters or support services for companies with clients in the wider Eastern Mediterranean and Middle East regions. Global organisations, such as news organisation AFP, have capitalised on its secure environment, leveraging its strategic location, time zone advantages, and reliable communication networks to manage operations between Europe and the Middle East.

Talent acquisition is another key advantage. Cyprus’ highly educated and multilingual workforce provides companies with a rich pool of local expertise. In addition, as an EU member state, Cyprus enables easy access to a broader talent pool of over 200 million professionals across the Union. Recent government incentives have further simplified the process for transferring non-EU staff to the island, making it easier than ever to secure global talent. With its unique combination of strategic advantages, Cyprus continues to attract businesses eager to expand their global footprint, while minimising costs and maximising operational efficiency.

Bespoke Real Estate

With a growing portfolio of world-class office spaces and tailored amenities, Cyprus continues to offer an unparalleled environment for businesses to flourish, whether they prioritise coastal convenience or access to an emerging innovation cluster. The country offers a versatile range of office solutions, catering to companies of all sizes and budgets, whether they seek bespoke headquarters or turn-key office spaces. Cyprus’ growing appeal as a business hub has sparked the development of signature commercial projects, particularly in the vibrant cities of Limassol and Nicosia. These developments feature state-of-the-art facilities and panoramic views of the Mediterranean Sea, blending luxury with functionality through mixed-use spaces that seamlessly integrate residential and commercial offerings.

Limassol remains the preferred choice for many international companies, thanks to its dynamic seaside lifestyle, well-established expat community, and convenient proximity to both Larnaca and Paphos international airports. The city has evolved into Cyprus’ primary international business hub, with a strong presence in shipping, technology, and financial services. Meanwhile, Nicosia, the inland capital, has carved a niche as the island’s knowledge and innovation hub. Multinationals with significant governmental or diplomatic interactions often base their operations in Nicosia, leveraging its proximity to ministries, embassies, and regulatory bodies. In recent years, the city has attracted a wave of entrepreneurs and enterprises in tech and R&D, spurred by its focus on fostering a thriving innovation ecosystem. Larnaca is currently undergoing much development and has strong appeal for frequent business travellers with Cyprus’ main international airport situated only 10 minutes from the city centre.

Thriving Tech Cluster

Cyprus has rapidly become a hub for major multinational firms in the ICT sector, including consulting, fintech, and regtech companies. These businesses utilise the island as a base for a wide range of corporate functions, such as software development, project management, sales and marketing, systems integration, testing services, training, disaster recovery, and business continuity. Joint R&D initiatives with regional partners further enhance the island’s innovation ecosystem. The information and communications sector in Cyprus rose on average by an astonishing 17.1% per year in 2014-23, with big US companies including multinationals based in Ireland being the key markets.

Cyprus also has more than 850 start-ups and is home to seven of the EU’s 38 evolving Centres of Excellence, helping the information and communication services sector to expand rapidly from a low base, as the country takes advantage of its geostrategic location at the intersection of three continents.

Recent years have seen a sharp uptick in interest from global tech firms, with many choosing Cyprus as a strategic location for expanding their operations. The government has doubled down on its commitment to fostering this growth, introducing targeted incentives designed to replicate the dynamic success of Cyprus’ shipping industry—home to Europe’s largest third-party ship management centre and the world’s leading crew management hub.

A vital draw for tech companies is Cyprus’ robust intellectual property (IP) regime, which offers a highly competitive effective tax rate of 2.5%. This framework is instrumental in attracting digital goods and IT software providers, making Cyprus a growing centre for digital business and related services. Beyond tax advantages, Cyprus has positioned itself as a prime sandbox for emerging technologies, including blockchain, artificial intelligence, and big data.

Home to Global Giants 

Cyprus has attracted a diverse roster of global heavyweights across industries. Companies like NCR, Kardex, Wargaming, 3CX, TSYS, Amdocs, Exness, Bolt, Melsoft Games, Kyndryl, Viber, Logicom, and Nexters have established operational or corporate management hubs on the island. In a significant recent development, Amazon launched a data service arm in Cyprus, marking a major milestone for the jurisdiction. Long-standing tech giants such as Microsoft, Oracle, SAP, and IBM have also maintained a presence on the island for decades.

The year 2022 brought new high-profile investments, including Revolut, the European digital banking platform, which became the first entity approved as a crypto-asset service provider by the Cyprus regulator. Revolut has since established a crypto-asset hub in Cyprus to serve its 17 million EEA customers. Other crypto leaders like Crypto.com, eToro, and BitPanda have also been drawn to the country’s robust regulatory framework. Meanwhile, TangoMe, a leading US consumer software company, announced plans to set up operations in Cyprus, and MUFG Investor Services, the global asset servicing arm of Mitsubishi UFJ Financial Group which manages over US$1 trillion in assets, opened a new operational centre in Limassol to support its European growth.

Creative industries and innovative tech firms are also thriving. TheSoul Publishing, one of the world’s largest online publishers with 1.5 billion followers, produces videos in 19 languages from Cyprus. Software innovator BrainRocket is positioning the island as a central European software hub, while Murex, a leader in trading and risk management solutions, is expanding its EMEA footprint from Cyprus. Global trading platform and fintech group Capital.com, whose total client trading volumes exceeded US$1.2 trillion in 2023, is also headquartered in Cyprus and cited it as the ideal jurisdiction for tech scale-ups to supercharge their growth strategies.

The country has also seen investments in biotech and outsourcing. Medicover, a multinational diagnostic and healthcare services provider, has supported local biotech innovation, and US-based business process outsourcing provider SYKES, now part of Sitel Group, has been growing its operations on the island over the last five years.

The shipping industry remains a cornerstone of Cyprus' economy, with major players like Bernhard Schulte Shipmanagement (BSM), InterMaritime Shipmanagement and Columbia Marlow, one of the largest ship and crew management companies worldwide, continuing to anchor their operations here.

Incentives for Non-EU Business

Cyprus has taken significant steps to enhance its appeal to international companies, particularly those outside the EU. In 2021, the government introduced a comprehensive Action Plan designed to streamline operations for foreign firms. This initiative incorporates best practices from across Europe and focuses on key sectors such as technology, shipping, innovation, R&D, biogenetics, and biotechnology, while remaining open to businesses from all industries.

The Action Plan introduced new tax breaks and established a Business Facilitation Unit (BFU) to serve as a one-stop hub, simplifying the setup process for foreign companies. Another major development is the introduction of provisions to make it easier for firms to hire highly skilled third-country nationals, alongside the launch of Digital Nomad Visas to attract remote professionals.

These measures also position Cyprus as a strategic location for UK companies seeking to maintain an EU presence post-Brexit. The island offers access to a skilled workforce, an attractive intellectual property regime, and a thriving professional services sector. Additionally, its legal and regulatory framework, based on English Common Law principles, provides UK firms with the advantage of operating in a familiar legal environment within an EU jurisdiction.

Island Lifestyle 

For expat executives, Cyprus’ lifestyle is a compelling factor. Renowned for its safety, excellent healthcare, and high-quality education, the island offers a family-friendly environment with 340 days of sunshine each year. While competitive personal tax rates and incentives are attractive, it’s the holistic package of professional and personal benefits that seals the deal for many. The vibrant cultural scene, coupled with a rich historical heritage, ensures a fulfilling experience for residents. With a stable economy and growing investor confidence, Cyprus offers a unique blend of business opportunity and lifestyle appeal.

Gateway to Global Markets

With thriving sectors in real estate, investment funds, shipping, and energy, Cyprus offers businesses a solid platform to expand into the EU and neighbouring high-growth markets. As a launchpad for innovation and international commerce, this Mediterranean gem is poised for continued success. Cyprus’ appeal lies in its strategic mix of economic incentives, robust infrastructure, and unmatched quality of life, making it an increasingly popular choice for global headquarters.

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December 2024