New incentive scheme to attract high-tech firms

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In the following months, the government will announce a new scheme for attracting high-tech companies, facilitating staff hiring, offering tax incentives and expedited licensing procedures, President Nicos Anastasiades said.

At Wednesday’s 9th Annual Cyprus International Investment Awards, he said this scheme complements other initiatives undertaken recently.

These include introducing an employment route for skilled third-country nationals specialising in the Information and Communications Sector and establishing a Fast-Track Business Activation Mechanism to simplify the services offered by the public sector to businesses wishing to establish in Cyprus.

Anastasiades said the Cypriot economy had entered a path of recovery, growing by 12.8% in Q2 2021, exceeding initial expectations and demonstrating positive prospects for the upcoming quarters.

“Our motto in Cyprus is that with every challenge, there is an opportunity.”

He said the government’s broader strategy for economic recovery also includes implementing much needed structural reforms for the further development of key economic sectors.

“To this end, we have taken a holistic approach and concrete steps to support sustainable development through our government’s plan ‘Cyprus for Tomorrow’ with a budget of €4.4 bln, comprising the main European Funds, namely the Recovery and Resilience Fund and the Cohesion funds.

“It is a key tool to restore economic activity and employment to the same levels as before the pandemic and to effectively lead towards green and digital transition.”

Anastasiades said to address the challenges Cyprus faces, numerous reforms are being promoted in public and local administration, the health, labour, educational and justice system, liberalisation of the energy market, digital transformation and research and innovation.

“A National Promotional Agency is to be established, with which funding programmes and schemes are expected to improve access to finance and liquidity, especially for small and medium-sized enterprises.”

He said grant schemes for research and innovation and establishing a central knowledge transfer office are expected to increase investments in research and innovation.

“According to the latest report of the Institute for Management Development for the World Competitiveness Centre 2020, Cyprus’ ability to attract and facilitate foreign direct investment and the adaptability of its policies have yielded remarkable results.

“Cyprus was named the most improved country, climbing 11 places and ranking 30th globally.

“The above results clearly show that over the years, Cyprus has evolved into a key destination for international business and investment in the region, with significant potential to become a world-class hub.

“We will not deviate from the path of sound governance of public finances, complemented by a business-friendly investment environment, moving forward with a comprehensive government strategy for investment facilitation to transform Cyprus into the ‘Sustainable Business and Trade Centre of Europe.”