In recent years, Cyprus has been transforming itself from a popular tourist destination into a vibrant entrepreneurial hub. But what is driving this change, and why are so many startups flocking to this Mediterranean island?
Stepan Kuzmin, Co-Founder of TellYourStartup, explained that “In recent years, Cyprus has been quietly reinventing itself” adding that “Once primarily known as a tourist destination, it is now buzzing with entrepreneurial energy.”
According to Kuzmin, “From fintech startups to green energy initiatives, Cyprus is becoming a testing ground for innovative ideas that could shape the future of the region.”
One of the most telling metrics is the capital raised by startups in Cyprus. According to Statista, the amount of capital raised quadrupled from 136 million USD in 2020 to 614 million USD in 2021.
Kuzmin noted, “After events such as the bankruptcy of the Silicon Valley Bank, capital raised decreased to 385 million in 2023.”
He added, “Since then, it has maintained steady growth of roughly 5 per cent per year, with a projected value of 428 million USD in 2025.”
On a broader scale, Cyprus has also been making a name for itself within the European Union. Kuzmin explained, “When looking at the newly released European Innovation Scoreboard, Cyprus stands out among its southern neighbours.”
He added, “It has risen to a proud 10th place within the EU, while obtaining strong innovator status.”
Kuzmin went on, “Having overtaken the EU average by 6 index points and leaving many larger neighbours, such as Greece, behind, the island nation has maintained a strong track record since 2017.”
He emphasised, “It’s a trend Cyprus will likely uphold in the future.”
As of 2024, Cyprus boasts a growing expat community. However, the recent influx of people is more attracted to the tech and venture prospects the island offers.
Kuzmin remarked, “The sun, the sea, and the favourable tax regime are simply an added bonus, which many enjoy.”
He observed, “Yet, none embrace these aspects as much as their predecessors.”
Kuzmin also explained, “Additionally, the region around the island has been plagued by political instability and faltering economies, which has led some people to flee in search of a better place to live.”
He continued, “This has attracted many skilled specialists from countries such as Israel, Iran, or even Turkey to settle in the country, which provides them with a safe haven not too far from their roots.”
Cyprus has also succeeded in attracting global corporations and educational institutions in recent years.
Kuzmin highlighted, “The American University of Beirut opened its doors to students this year.”
He added, “The presence of companies like the Big Four in various locations has strengthened the island’s position as a business hub.”
Kuzmin noted, “A combination of these factors will play a crucial role in the country’s future.”
He emphasised, “Educating its citizens, while preventing a brain drain by providing them with work to challenge their skillset, will accelerate Cyprus’ economic development.”
He concluded, “All of this will propel Cyprus to become a regional leader.”
Despite these promising developments, Kuzmin acknowledged that Cyprus presents both opportunities and challenges for entrepreneurs and expats.
He explained, “While the country’s bureaucratic processes can seem daunting at first, they often reveal a flexibility not found in more rigid Northern European nations.”
Kuzmin noted, “Navigating the administrative landscape may be time-consuming and complex, often requiring local insight to fully understand.”
However, he added, “This system also allows for a personal touch that can streamline processes when approached with respect and cultural understanding.”
According to Kuzmin, learning basic Greek phrases like ‘καλημέρα’ (good morning) is just the beginning.
He observed, “Truly embracing Cypriot values and traditions can open doors in ways unimaginable in many other EU countries.” Kuzmin also highlighted, “The warmth of Cypriot hospitality isn’t just a saying—it’s something you experience firsthand.”
He added, “Despite recent changes in the social landscape, the island’s people remain remarkably welcoming.”
Kuzmin pointed out, “Newcomers who make an effort to integrate into the community often find themselves embraced as part of an extended family, with a support network ready to lend a hand when needed.”
Cyprus’ business ecosystem continues to evolve. Kuzmin remarked, “The port city of Limassol is developing into a vibrant tech and business centre, with modern infrastructure gradually reshaping its skyline.”
He also highlighted the island’s strategic advantages, saying, “Cyprus’s location at the crossroads of Europe, Asia, and Africa, along with its EU membership, provides unique advantages for international businesses.”
As Cyprus continues to develop its business ecosystem, “it offers an intriguing blend of opportunity and Mediterranean lifestyle,” Kuzmin said.
He concluded that “for entrepreneurs and companies looking for new horizons within the EU, Cyprus presents an option worth considering—a place where traditional hospitality meets modern business ambitions.”
