Cyprus is offering a €10m incentive package to investors who take on the development of a new science and technology park in Limassol, the hub of the country’s burgeoning ICT sector.
A new tender has gone out to build the Pentakomo Technology Park on a 196,000-sq-m site at Limassol, which contributes 14% to GDP.
The tender has already attracted interest from investors in the US, China, India and Israel.
Last year, Cyprus was ranked the fastest-growing startup ecosystem in the European Union.
€10m deducted
The consortium that wins the contract to build the park can have up to €10m deducted from rent payable over the initial 33-year lease for the land.
The tender also revealed a raft of other incentives for attracting new business talent to the island including:
- 80% of profits from IP rights to be tax exempt to attract enterprise and encourage R&D activities;
- A 50% income tax exemption for anyone earning over €55,000 a year, providing they have not been tax residents of Cyprus for the past 10 years; and
- Employees earning less than €55,000 a year can receive a 20% income tax exemption, or up to €8,550, for the first seven years of employment.
Fast track to citizenship
Under a new “Golden Knowledge” fast-track scheme, citizenship will be available after four or five years for highly skilled foreign employees, depending on their Greek language knowledge.
Permanent residency will be available to anyone investing €300,000 or more in commercial or residential property.
The maximum buildable area of the park is capped at 65,000 sq m and there is scope to install a rooftop renewable energy power system of up to 5 MW capacity exclusively for onsite use.
About 30% of the site will be allocated for open space and an internal road system, with two thirds dedicated to technological and scientific activities such as research labs, office spaces and innovation hubs.
According to reports, the investor will have flexibility in urban planning, including rental spaces, small-scale workshops, residential units and a hotel.
Strategic location
Cyprus is hoping to capitalize on its strategic location in the Eastern Mediterranean with strong ties to Europe, the Middle East and Africa to develop industries such as fintech, e-commerce, tourism and hospitality, agri-tech, health-tech and cleantech.
The Ministry of Energy, Commerce and Industry said its aim was: “To establish Cyprus as an internationally recognised tech hub for innovation and entrepreneurship, where research, technology and sustainability converge to create opportunities, accelerate progress and drive economic growth in a globally connected environment”.
According to the ministry’s timeline, interested parties will be able to submit proposals until October, with evaluations taking place between December 2025 and January 2026.
The second phase will require investors to submit detailed proposals by April 2026 with the successful choice being selected by June 2026.
- Anthony Harwood is a former foreign editor of the Daily Mail
