Becoming a registered Cyprus IT company comes with a range of public and private incentives within a leading innovative market for technology and development. Cyprus IT company formation or relocation has become a prosperous venture for both local entrepreneurs and a diverse range of international visionaries focused on putting their businesses in the most advantageous locale.
With experience providing international clients with innovative approaches to relocation and establishment within the various business industries of Cyprus, The Aspen Trust Group puts a Cyprus IT company as a leader in the field by understanding how to best benefit from the public and private initiatives underway in Cyprus.
The Flourishing Cyprus Technology Environment
Cyprus is the perfect jurisdiction for the formation of a Cyprus IT company. The popularity of the destination for software development, tech infrastructure, and telecommunications services attributes its growth to a strategic market location between several continents, a resilient and highly-skilled workforce, an efficient tax and immigration regime, and international support for a variety of cultures and languages.
New national strategies and private IT start-up development projects attract more foreign investment into the country’s industries, ranging from financial services to energy industries as well as the global communications and technology sector.
An Expanding International Investment and Business Destination
A welcoming jurisdiction for foreign investors and entrepreneurs, Cyprus steadily continues to attract international enterprises thanks to its beneficial tax regime, smooth immigration process, and attention to global investment initiatives.
In addition to offering a high quality of living and other distinct natural and institutional features that make it an ideal relocation locale for a Cyprus IT company, the country provides a haven for business and investment-minded individuals. Its most recent wave of relocation groups included foreign companies and employees from the U.S., the U.K., E.U. member states, Israel, and now, most notably from Russia and Ukraine. This new wave in migration, primarily IT workers, affords stability in the country and a booming technological sector.
Oleg Reshetnikov, the founder of the Russian-speaking specialist network community CypRus_IT, estimates that nearly 50,000 foreign nationals have relocated to Cyprus since February 2022. The majority of these relocations have been from Russia or Ukraine and have settled in Limassol, one of the emerging financial and tech hubs in the jurisdiction. In comparison, foreign nationals in Cyprus express a more welcoming attitude among their communities than residents in other E.U. countries still accepting applications from these regions.
This migratory activity is no surprise to the country as prior to the Russia-Ukraine conflict, Russian foreign investment accounted for a fourth of the jurisdiction’s foreign investment and a fifth of its tourism revenue. Beyond adding to the unique cultural makeup of the country, these foreign nationals bring highly-educated and skilled labor and enterprising ventures into the country, propelling it further as a leader in the modern business sphere.
Entrepreneurs and business owners can expect to capitalize on the skilled workforce of Cyprus when relocating their business and forming a Cyprus IT company as well as expect a thriving community of service-providing experts.
The Establishment of Cryptocurrency in Cyprus
In October 2022, the Cyprus Securities and Exchange Commission (CySEC) granted Binance Cyprus Limited a Class 3 registration, enabling the company to be a Crypto Asset Services Provider (CASP). Europe is the second largest global market for the blockchain and cryptocurrency movement and Cyprus is at the center of this hub, proving to be a popular destination for blockchain start-ups and one that has positive governmental support for this emerging field of companies and capabilities.
Under the current legal framework, CySEC grants three categories of registrations for CASPs or businesses with crypto-activities that meet the legal compliance standards of the E.U. To register as a Cyprus IT company with cryptocurrency functions, CySEC provides an application form, required evidence documentation, and the fee breakdown for each category.
In addition, CySEC continues to drive governmental efforts to provide resources and infrastructure for cryptocurrency businesses and their activities. At the same time, CySEC has worked hard to establish regulations, such as with the current suspension of the crypto-exchange FTX, to promote a healthy market for businesses and investors. More regulations are in order to address concerns and further support this growing subsector of Cyprus’s technology industry.
East to Med Data Corridor: Cyprus’s Connection to Asia
The East to Med data Corridor (EMC) is the latest technological initiative to put the region at the forefront by offering an innovative tech space for a registered Cyprus IT company. The project will lay a submarine fibre optic data cable by 2025 that will connect Europe with eastern neighbor Asia, further removing any constraints to or delays in connectivity between the two major regions. The digital communication network will speed up the development and emergence of Cyprus as a regional data hub by further strengthening new business operations relating to security, data, and other tech-related services.
The EMC is a private-backed initiative by the MENA HUB, overseen by the largest telecommunications company in Saudi Arabia STC, alongside TTSA, a telecommunications company from Greece specializing in satellite applications. In Cyprus, the project is spearheaded by Cyta, a local telecoms operator.
Despite being physically disconnected from continental Europe, Cyprus’s geographical location is the ideal destination as the hub for the EMC project as a connection point between Africa, the Middle East, Europe, and Asia. With an investment cost estimated at 800 million Euros (850 million USD), the EMC should be operational by the final quarter of 2025 and with announcements to the countries covered forthcoming.
Relocating to the region as a registered Cyprus IT company is a strategic advantage for businesses relying on technological services and networks within a robust digital ecosystem.
Cyprus IT Company Headquartering and Relocation with The Aspen Trust Group
New national policies in 2021 saw a further growing interest in business relocation from third-country nationals. Under the new headquartering policies, eligible companies and their employees are granted residency and work visas for contributing to the Cyprus economy. In addition, foreign nationals who meet certain conditions may also bring their family members, gaining immediate and unhindered access to the labor market.
Furthermore, the jurisdiction offers a fast track to work permits and quality support services through the Business Facilitation Unit. Digital nomads interested in taking advantage of the booming industries and tech ecosystem of Cyprus can apply easily for a Digital Nomad Visa with many additional residency and tax perks. With the formation of a Cyprus IT company, foreign entrepreneurs can expect some of the best corporate income tax rates in Europe (12.5%) and a range of other taxation incentives.
In regard to technology, the Ministry of Finance extends a tax exemption for investment by corporate entities dealing with innovation. Research and Development (R&D) expenses are already deductible from taxable income, but the government is considering further policies to secure opportunities for the vital expansion of the Cypriot economy. The establishment of the Deputy Ministry of Research, Innovation and Digital Policy ensures the country’s commitment to providing fundamental and cutting-edge strategies for tech professionals and their registered Cyprus IT companies.
The Aspen Trust Group and its network of professionals provide many international clients with the best approach to relocating and registering a Cyprus IT company. We put our clients on a path to getting the most when it comes to connecting with tech-support services and groundbreaking new initiatives further to develop their businesses into leaders in the industry.
Contact our experts to get started on forming a Cyprus IT company and join a community of diverse and innovative field experts providing outstanding tech solutions to the modern world.