Not long ago, Cyprus was known mostly for its beaches and tourism. Today, it’s quietly building a reputation as a place where startups can take root and grow. The vision is clear: use the island’s location at the meeting point of Europe, the Middle East, and Africa to create a hub that connects markets, talent, and capital.

A Supportive Environment for Founders

The government has leaned in. In 2020, Cyprus set up the Deputy Ministry of Research, Innovation & Digital Policy, while the Research & Innovation Foundation (RIF) launched programs for every stage of growth—whether it’s a €10,000 voucher to test an idea or a €1M co-investment scheme for scaling companies. The Startup Visa, refreshed in 2025, makes it easier for international founders to call Cyprus home.

What Makes Cyprus Attractive to Startups

Taxes and policies are founder-friendly: the corporate rate is among the lowest in the EU, and the IP Box regime offers strong incentives for companies developing software, gaming, or deep tech. English is the language of business, and the legal system is transparent and internationally familiar. Add in a relaxed lifestyle, short distances, and a growing international community, and Cyprus becomes more than just a business base — it’s a place people want to live.

Growth You Can See

The numbers tell the story. Tech now contributes over 16% of the economy, supporting more than 62,000 jobs. The ICT workforce has tripled in a decade, and productivity per worker is higher than the EU average. Local startups are raising more funding, and global players are beginning to see Cyprus as a serious node in the regional innovation map.

The People and Platforms Behind the Ecosystem

This momentum is not happening in isolation. TechIsland, the country’s largest tech community, brings together founders, investors, and policymakers. On the ground, incubators and accelerators such as IDEA Innovation Center, CyRIC, Chrysalis LEAP, and Cyprus Seeds are helping early-stage ventures grow. And every spring, Reflect Festival in Limassol turns the island into a meeting point for thousands of entrepreneurs and investors from Europe, Africa, and the Middle East.

Looking Ahead

Cyprus is still a young ecosystem, but it has achieved in a few years what many countries take decades to build. The next chapter is about scale: more late-stage funding, stronger commercialization of research, and positioning Cyprus as the go-to bridge between three continents.

For startups, it’s a chance to be part of a story that is still being written. For investors, it’s an opportunity to get in early on an ecosystem with ambition, momentum, and a welcoming community.