Cyprus is solidifying its position as a key regional base for global business, with foreign companies increasingly flocking to the island over the last few years. In the first quarter of 2025, over 90 new foreign companies formally established presence in Cyprus, a nearly 20 % increase over the same period in the previous year. In 2024, Cyprus saw 465 foreign enterprises registering for business, and 2025 looks poised to exceed even the strong 2022 levels when 1,605 new foreign companies entered Cyprus – a testament to the country’s growing appeal as a headquartering (HQ) destination for global businesses.

This surge in activity is not just attracting EU-based businesses, as a rising number of non-EU companies are strategically leveraging Cyprus as a gateway to the European market for sectors ranging from software and technology to energy, investment funds, and consultancy. Inbound investment increasingly originates from the US, the UK, Israel, India, the Middle East, and Asia, reflecting Cyprus’ role as a stable, EU-compliant access point to the Single Market.

Beyond this, Cyprus offers many advantages. A geostrategic location, a state-of-the-art communications and technology infrastructure, a consistent rolling out of incentives aimed at attracting companies from around the world, its safe and relaxed Mediterranean lifestyle that appeals to expatriate professionals and their families, and a solid professional services sector supporting businesses, all make Cyprus an attractive destination.

Efficient Operating Base

Cyprus has positioned itself as an efficient business destination, offering companies a seamless environment for establishing and managing operations. The country has a transparent regulatory and legal framework, and a robust financial and professional services sector built on decades of global expertise. Over 5,000 registered accountants and more than 800 accounting firms – including major global players – support business needs, alongside more than 4,000 lawyers and 700 law firms. Its EU-approved tax regime offers attractive incentives for both corporations and individuals, making Cyprus an efficient financial and operational base for business.

Despite an upcoming corporate tax increase from 12.5% to 15% in early 2026, industry analysts believe it will not slow down the influx of foreign businesses but could in fact be seen as a strategic move to improve Cyprus’ international reputation, steering it away from its past image as a tax haven.

Another significant advantage is Cyprus’ cost-effectiveness. Set-up and operational expenses are distinctly lower compared to more mature European markets – a critical factor for businesses navigating today’s challenging economic climate. Strategically located at the crossroads of Europe, Asia, and Africa, Cyprus provides direct access to the EU Single Market of over 500 million consumers and serves as a gateway to the wider region. Its advantageous time zone allows companies to seamlessly coordinate operations across continents, conducting business with Asia in the morning, Europe during the day, and the Americas in the afternoon.

The island's air connectivity is a key factor in facilitating business, with two international airports linking Cyprus to major European cities and key destinations in Asia, North Africa, and the Middle East. Additionally, its modern ports and logistics infrastructure support diverse business operations, further enhancing its appeal as a regional hub.

Cyprus offers stability and security as an EU jurisdiction in a volatile region, making it an ideal base for regional headquarters or support services for companies with clients in the wider Eastern Mediterranean and Middle East regions. Global organisations, such as news organisation AFP, have capitalised on its secure environment, leveraging its strategic location, time zone advantages, and reliable communication networks to manage operations between Europe and the Middle East.

Talent acquisition is another key advantage. Cyprus’ highly educated and multilingual workforce provides companies with a rich pool of local expertise. In addition, as an EU member state, Cyprus enables easy access to a broader talent pool of over 200 million professionals across the Union. Recent government incentives have further simplified the process for transferring non-EU staff to the island, making it easier than ever to secure global talent. With its unique combination of strategic advantages, Cyprus continues to attract businesses eager to expand their global footprint, while minimising costs and maximising operational efficiency.

World-Class Office Space

With a growing portfolio of world-class office space and tailored amenities, Cyprus continues to offer an environment well suited to multinational HQs and technology-driven organisations. Its growing appeal as a business hub has sparked the development of Grade A, purpose-built commercial projects, particularly in Nicosia and Limassol, featuring mixed-use design integrating offices, residential units, and lifestyle amenities. The country offers a versatile range catering to companies of all sizes and budgets, whether they seek bespoke headquarters or turn-key office spaces.

Limassol remains the preferred choice for many international companies, thanks to its dynamic seaside lifestyle, established expat community, and convenient proximity to both Larnaca and Paphos international airports. The city has evolved into Cyprus’ primary international business hub, with a strong presence in shipping, technology, and financial services. Meanwhile, Nicosia, the inland capital, has carved a niche as the island’s knowledge, policy, and innovation centre – attracting tech, R&D, and regulatory-facing organisations. Larnaca is currently undergoing significant regeneration, capitalising on the proximity to Cyprus’ main international airport and competitive commercial real estate pricing.

Growing Tech Sector

The Cyprus tech sector has seen rapid growth, attracting multinational ICT firms to its shores. The information and communications sector has now become the largest sector, having risen on average by an astonishing 17.7% per year in 2015-24

These businesses utilise the island as a base for a wide range of corporate functions, such as software development, project management, sales and marketing, systems integration, testing services, training, disaster recovery, and business continuity. Joint R&D initiatives with regional partners further enhance the island’s innovation ecosystem. Cyprus also has more than 850 start-ups and is home to seven of the EU’s 38 evolving Centres of Excellence, strengthening AI data science, energy, and health innovation.

The government has doubled down on its commitment to fostering this growth, introducing targeted incentives designed to replicate the dynamic success of Cyprus’ shipping industry – home to Europe’s largest third-party ship management centre and the world’s leading crew management hub.

A vital draw for tech companies is Cyprus’ robust intellectual property (IP) regime, which offers an effective tax rate of 2.5% on qualifying IP income, fully aligned with OECD rules. This framework is instrumental in attracting digital goods and IT software providers, making Cyprus a growing centre for digital business and related services. Beyond tax advantages, Cyprus has positioned itself as a prime sandbox for emerging technologies, including blockchain, artificial intelligence, and big data.

Hub for Global Business 

Cyprus has attracted a diverse roster of global heavyweights across industries. Companies like NCR, Kardex, Wargaming, 3CX, TSYS, Amdocs, Exness, Bolt, Melsoft Games, Kyndryl, Viber, Logicom, and Nexters have established operational or corporate management hubs on the island. Long-standing tech giants such as Microsoft, Oracle, SAP, and IBM have also maintained a presence on the island for decades, as have major players in the shipping industry such as Bernhard Schulte Shipmanagement (BSM), InterMaritime Shipmanagement, and Columbia Marlow, one of the largest ship and crew management companies worldwide.

Meanwhile, Amazon’s data services arm and MUFG Investor Services, the global asset servicing arm of Mitsubishi UFJ Financial Group which manages over US$1 trillion in assets, also recently established Cyprus-based operations, further reinforcing confidence in the jurisdiction.

Companies choosing to headquarter in Cyprus often cite it as the ideal jurisdiction for tech scale-ups to supercharge their growth strategies. Fintech leaders such as Revolut, eToro, Crypto.com and BitPanda have selected Cyprus for EU-facing operations under CySEC supervision, as have companies like US-based business process outsourcing provider SYKES, trading and risk management solutions leader Murex, global trading platform and fintech group Capital.com, and Medicover, a multinational diagnostic and healthcare services provider which has supported local biotech innovation.

Leading global SaaS platform for online visibility Semrush has based its operations in Cyprus for a decade. The company, whose biggest clients include giants such as Amazon and Tik Tok, underlines the benefits of headquartering in Cyprus: a supportive environment to build the company and to fuel global growth. Evidence of this growth came in 2025 with Semrush’s $1.9 billion deal with Adobe to acquire its search engine marketing platform. The deal is being cited by the country’s investment promotion agency Invest Cyprus as a tangible demonstration of how strategic incentives and ecosystem quality can yield major outcomes – marking a potential shift for Cyprus from simply attracting relocations to hosting firms that become acquisition targets for global majors.

Attracting Non-EU Business

Cyprus has taken significant steps to enhance its appeal to international companies, particularly those outside the EU. In 2021, the government introduced a comprehensive Action Plan designed to streamline operations for foreign firms. This initiative incorporates best practices from across Europe and focuses on key sectors such as technology, shipping, innovation, R&D, biogenetics, and biotechnology, while remaining open to businesses from all industries.

It introduced new tax breaks and established a Business Support Center (BSC) to serve as a one-stop hub, simplifying the setup process for foreign companies. Another major development is the introduction of provisions to make it easier for firms to hire highly skilled third-country nationals, alongside the launch of Digital Nomad Visas to attract remote professionals.

These measures also position Cyprus as a strategic location for UK companies seeking to maintain an EU presence post-Brexit. The island offers access to a skilled workforce, an attractive intellectual property regime, and a thriving professional services sector. Additionally, its legal and regulatory framework, based on English Common Law principles, provides UK firms with the advantage of operating in a familiar legal environment within an EU jurisdiction.

Cosmopolitan Lifestyle 

For expat executives, Cyprus’ lifestyle is a compelling factor. Renowned for its safety, excellent healthcare, and high-quality education, the island offers a family-friendly environment with 340 days of sunshine each year. While competitive personal tax rates and incentives are attractive, it’s the holistic package of professional and personal benefits that seals the deal for many. The vibrant cultural scene, coupled with a rich historical heritage, ensures a fulfilling experience for residents. With a stable economy and growing investor confidence, Cyprus offers a unique blend of business opportunity and lifestyle appeal.

Launch Pad for Global Markets

With thriving sectors in technology, real estate, investment funds, shipping, and energy, Cyprus offers businesses a solid platform to expand into the EU and practical access to global markets. As a launchpad for innovation and international commerce, this Mediterranean island is poised for continued growth and development. Its strategic mix of EU credibility, economic incentives, robust infrastructure, and lifestyle appeal positions Cyprus as one of Europe’s most compelling emerging headquarter destinations.

→ For more information, contact Cyprus' investment promotion agency, Invest Cyprus.

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December 2025