Tax overhaul to boost Cyprus’ tech sector, says TechIsland

TechIsland welcomed the adoption of the tax reform by the House of Representatives, saying it concludes an extensive institutional process aimed at modernising Cyprus’ tax framework.

In a statement, the association said it acknowledged “the importance of the dialogue that preceded the legislative process and the opportunity provided to social and productive stakeholders to submit their positions and recommendations”.

Representing the fastest-growing sector of the Cypriot economy, with a contribution of around €8 billion to gross domestic product, TechIsland said it had actively participated in the process, submitting well-documented views with the objective of maintaining and strengthening the country’s international competitiveness.

With the legislative process now complete, the association said the focus should shift to implementation, in particular the clarity and practical functionality of the new provisions, as well as their real impact on business operations and, by extension, on the economy.

TechIsland added that it would “closely monitor the implementation of the reform” and continue to engage constructively in public dialogue, submitting substantiated recommendations where deemed necessary, with the aim of supporting a stable, predictable and conducive business environment.

Founded in 2021, TechIsland is the primary non-profit driving the evolution of Cyprus into a global tech destination.

The association represents hundreds of firms in a collective effort with government stakeholders to modernise infrastructure and policy, ultimately seeking to make the island a top-tier hub for talent and a primary engine for national economic growth.