Tech companies are becoming an increasingly significant part of Cyprus’ economy. The Information and Telecommunications (ICT) is the fastest growing sector in Cyprus, posting an average growth rate of 15% and outperforming all other sectors of the economy, writes George Ayiomamitis, Managing Director of Sovereign Trust (Cyprus).
By the end of 2022, the impact of international ICT companies on the Cyprus economy had increased by 40%, according to Invest Cyprus, injecting over €3 billion into the economy. While the arrival of more than 50 international ICT companies had led to the creation of more than 1,000 new jobs.
The tech sector in Cyprus now employs 30,000 people out of a population of one million and its contribution to GDP stands at around 15%. There are currently 860 start-ups and scale-ups in Cyprus, of which Fintech is the largest component with 194 companies, according to the Cyprus Tech Ecosystem Map.
The scale of this tech revolution was brought home to me when I attended Cyprus’ flagship tech and start-up event, the Reflect Festival, in Limassol last month. The festival, now in its second year, drew more than 8,000 attendees from 70 countries and attracted around 1,500 companies.
More surprising, to me at least, was the presence of government representatives from over 20 countries, highlighting the importance of strategic collaboration and government support in promoting the growth of the start-up ecosystem.
A less positive figure, however, suggests that only 18 Cypriot companies currently hold patents. This is disappointing when you consider that the Cyprus ‘IP Box’ regime, which applies specifically to patents and software, offers one of the most favourable tax environments for intellectual property worldwide. And Cyprus’ extensive network of double tax treaties ensures that royalties received in Cyprus are subject to minimal or no withholding tax.
It is an anomaly that Sovereign Trust Cyprus will work hard to correct. In addition to the corporate services that we can offer to tech start-ups in Cyprus, we also have the expertise in IP licensing and structuring to enable Cyprus-based tech companies to prosper globally and for Cyprus to truly become a world-leading hub for tech and innovation.
Managing Director, Sovereign Trust Cyprus Ltd
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Louiza joined The Sovereign Group in November 2022 as a Client Relationship Manager. With 15 years of experience in the corporate field under her belt, Louiza has the vast knowledge and hands-on experience required to best service corporate entities and trusts. This includes, but is not limited to, fully handling the establishment, administration and maintenance as well as any other supporting service needed. “I learned to work in a fast-paced environment with a variety of different client portfolios,” she tells us. In May 2024, Louiza was promoted to Head of Corporate Administration, recognising her dedication and skill in delivering exceptional service.
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