Cyprus – The Fastest-Growing Startup Hub in the EU

Cyprus is solidifying its position as a dynamic player in the global startup ecosystem, showcasing impressive growth rates. According to the Research and Innovation Foundation (RIF), Cyprus climbed nine positions in the StartupBlink Ecosystem Index 2024, becoming the fastest-growing startup ecosystem in the European Union.

This remarkable achievement is driven by strong government support, favorable tax policies, an investment-friendly climate, and an influx of highly skilled professionals into the tech sector. Startups in Cyprus are flourishing in fields such as FinTech, iGaming, cybersecurity, blockchain, artificial intelligence (AI), and other tech-driven industries.

Key Achievements of Cyprus in the Startup Industry

The growth of Cyprus’s startup ecosystem is reflected in its outstanding performance:

• 6th globally in the number of startup exits valued up to $1 billion.
• 9th globally in the number of investors per capita.
• Fivefold increase in the number of startups since 2020, highlighting the sector’s rapid expansion.
• Cyprus is the only country with a population under 2 million where four cities are listed in the global startup index.
• Limassol was named the best city for startups in Southern Europe.
• Ranked 39th globally for FinTech development and 25th for online gaming (iGaming).

Theodoros Loukaidis, CEO of the Research and Innovation Foundation (RIF), stated:
“The startup ecosystem in Cyprus is rapidly expanding. This recognition underscores our commitment to fostering innovation and entrepreneurship. Through robust government support, targeted funding programs, investment incentives, and initiatives to attract talent, we are creating a nurturing environment for startups to develop products, attract private investment, scale internationally, and achieve success.”

Cyprus’s favorable tax regime for startups further accelerates the sector’s growth, offering attractive conditions for international businesses. Low corporate tax rates, the IP-Box regime, investor programs, and streamlined company registration processes make Cyprus an appealing destination for entrepreneurs.

Growth Prospects

Cyprus’s rise in the StartupBlink 2024 Index reflects the development of a resilient ecosystem that will continue to attract new entrepreneurs and investors.
Business infrastructure is expanding, with new incubators and coworking spaces creating a supportive environment for launching projects. Through specialist relocation programs, IT startups in Cyprus gain access to highly skilled talent.

In the coming years, Cyprus is expected to further strengthen its position as one of the leading startup hubs in Europe and globally.

If you are planning to launch a business in Cyprus, our team is ready to assist you with company registration, tax planning, and legal support.

Our office in Larnaca is open for you!