Aug 3, 2021
Cyprus is now becoming the world’s newest fintech hub and the go-to choice for fintech companies
Small but ambitious, Cyprus has developed itself into a rapidly growing startup ecosystem.
Driven by research, scientific excellence, innovation, entrepreneurship, and technological development, the country has attracted fintech and regtech companies from across the globe. Thus, Cyprus has become a fintech hub, as well as a preferred destination for international tech companies and venture capitalists.
The growth of Cyprus’s fintech market currently comprises 250+ fintech start-ups, offering a broad range of services. From real-time investment portfolio securitization and advanced performance analytics to automated order processing and digital banking, Cyprus has it all.
Strong Foundations With Endless Opportunities
With over 8,000 ICT(Information and Communication Technology) professionals serving the fintech industry in Limassol alone, the country’s strong fintech foundations were laid a long time ago. Cyprus is also home to some of the world’s leading names in regtech, IoT, cybersecurity, and gaming, including AmDocs, Point Nine, Nexters Global, and Throne Rush.
Cyprus’ strategic location at the intersection of Europe, the Middle East, and Africa, optimally positions the country to serve as the ultimate financial center and the ever-growing fintech hub.
What’s more, local regulators and competent authorities are in favor of facilitating fintech activity, creating optimal conditions for new and existing players.
Sustaining Businesses = Endless Rewards
To encourage the wide transformation of financial services, the Cyprus Exchange and Securities Commission (CySEC) launched the Innovation Hub in 2018. The Hub promotes closer ties with new, but fast-growing industries, weighing risks against benefits to protect investors and drive long-term growth.
The country has taken many measures to sustain fintech businesses. These include continuous efforts to upgrade the legislative and regulatory regime and the adoption of new technologies. Moreover, a low corporate tax of 12.5 percent, a developed network of double tax treaties, and an 80% tax exemption on qualifying profits make investing in fintech in Cyprus highly appealing.
It is also important to note that Cyprus is a member of the EU. This enables EEA citizens to work freely in Cyprus, without any special permits which means there will never be a shortage of professional personnel.
The Ultimate Fintech Choice -The Challenges
Despite being home to an exceptional talent base, the fintech industry in Cyprus continues to experience a shortage of talents. To truly enable Cyprus to become the ultimate fintech hub, the country must be showcased as an ideal EU location for scaled-up, international high-tech operations.
Efforts must be focused on cultivating the next generation of tech entrepreneurs and the culture of innovation and entrepreneurship as a whole.
Cyprus is rapidly developing into the ideally located, ultimate, global fintech hub. With the country’s government on its side and programs and regulations already in place, the fintech future of Cyprus is indeed bright.