Cyprus Leads the EU in IT Job Growth Rates

Cyprus is a top location for IT companies in 2025: low taxes of 12.5%, IP Box at 2.5%, Non-dom status, incentives, and fast business registration.

Cyprus has become one of the most promising destinations for IT businesses in Europe. The island attracts attention not only due to its mild climate and high quality of life but also because of the rapid growth in the Information and Communications Technology (ICT) sector.

One of the most significant pieces of evidence that Cyprus is a leading platform for IT company development is the annual growth rate of IT sector jobs, which reached 9.2% from 2014 to 2024. This rate is the highest in the European Union, surpassing the average growth rate of IT employment across all European countries.

The Cypriot government actively supports the growth of the IT sector by offering tax incentives, access to innovative technology parks, and programs aimed at developing startups. This makes Cyprus an ideal location for establishing IT companies and growing a technology-based business.

But why Cyprus? Here are several factors that make it an ideal place to open an IT company in Cyprus in 2025:

1. Stable Economic Environment
   Cyprus has become an important economic hub in Europe, with its economy supported by a favorable tax policy and a strategically advantageous location. This allows companies to effectively conduct business both locally and internationally.
2. Low Taxes for IT Companies
   Cyprus is known for its tax incentives for technology and startup companies.
   • The corporate tax rate is 12.5%, one of the lowest in Europe.
   • There is also the IP Box program, which allows companies to reduce corporate tax to 2.5% on income from intellectual property, significantly easing the tax burden.
   • The Non-dom tax regime allows new tax residents to avoid taxation on global income from dividends and interest, further attracting foreign professionals and investors.
3. Team Relocation Opportunities

In Cyprus, you get not only a favorable business environment but also straightforward paths to residency for investors, employees, and their families. Cyprus also attracts companies and professionals with its high quality of life, affordable housing, excellent healthcare, and safe working and living environment. This makes it an ideal choice for relocating an IT team or moving with family.

Read more: Top 7 Reasons Why IT Companies Choose Cyprus

Steps to Register an IT Company in Cyprus

Registering an IT company in Cyprus is a process that can be completed in a few weeks, provided all necessary documents are in order. Cyprus offers convenient conditions for foreign entrepreneurs, and all registration steps can be done remotely with accredited lawyers, without the need to visit Cyprus. Here are the main steps to register an IT company in Cyprus:

1. Choose the company type
2. Select the name and legal address
3. Prepare the founding documents
4. Register with the tax authorities
5. Open a corporate bank account
6. Obtain licenses and permits (if necessary)

Read more: Step-by-Step Process of Starting a Business in Cyprus

Feod Group — Your Partner for Opening an IT Business in Cyprus

We offer a full range of services for startups and tech companies:

• Company registration and all necessary document preparation
• Opening a bank account and financial assistance
• Consulting on tax planning and tax optimization
• Obtaining permits and licenses, if needed
• Relocation to Cyprus: we support you and your team in successfully moving and starting work on the island.

Why Choose Cyprus for Your IT Company

Cyprus offers unique opportunities for IT professionals and tech companies looking to expand on the international stage. With rapid growth in the IT sector and a stable economy, the island is not just a place to live, but a real platform for the growth and development of your business.

If you are planning to open an IT company in Cyprus in 2025, invest in innovation, and take advantage of all the benefits Cyprus offers, contact us. We will provide professional guidance at every stage and help make your business plan in Cyprus a reality!

With us, you get complete end-to-end support!
Schedule a consultation for registering your IT company in Cyprus