Theodoros Loukaidis: How investors can benefit from Cyprus’ mixed financing systems

"Cyprus is a regional hub for technology and innovation, with an excellent geostrategic position and a favourable business environment," Research and Innovation Foundation (RIF) Director General, Theodoros Loukaidis has underlined.

As part of his presentation at the 10th International Funds Summit & Expo presented by CIFA and Invest Cyprus in Nicosia, Loukaidis focused on the financing schemes that Cyprus offers to enhance the innovation and the opportunities available to investors within a dynamic economic environment which is also constantly developing.

During his address, the Director General said that Cyprus has established a progressive support framework for startups and growing companies, while at the same time providing significant incentives to investors through innovative financing, which combines public and private resources.

As he said, more than €352.5 million has been invested in startups and scaleups in Cyprus in the last five years, while an additional amount of €40 million from venture capital (VCs) has strengthened the country's innovation ecosystem. This form of mixed financing allows investors to reduce the risk of their investments and take advantage of the opportunities provided by innovation, he explained.

One of the key points of the presentation was the set of incentives that Cyprus offers to attract investment in innovative companies.

According to Loukaidis, these incentives include tax exemptions, such as a 50% tax reduction for investments in certified innovative businesses, as well as a 120% discount on Research and Development (R&D) expenses (120% of the actual eligible R&D expenses is deducted from the taxable income).

The country also offers the Startup Visa Scheme and the Scientific Visa Scheme to attract talent from abroad, and has an IP regime with a tax rate of just 2.5% on intellectual property income, making it particularly attractive for companies operating in the technology sector.

Continuing, Loukaidis presented specific examples of mixed funding, such as investments in the field of radiation detection and environmental intelligence. Particular emphasis was also placed on the role of venture capital (VCs) investing in Cyprus and making it a hub of innovation in the Eastern Mediterranean region.

The presence of more than 60 investors and the continuous support of more than 140 technology companies, 500 startups and scaleups, as well as 15+ investment bodies, prove that Cyprus is one of the most attractive markets for investors, he noted.

In this context, RIF develops support programs that strengthen the participation of Cypriot companies in European programs, while at the same time providing innovative services and support for the transfer of knowledge, the Director General added.

Concluding his presentation, Loukaidis underlined that Cyprus is a market where every euro of investment has a greater return, as mixed financing and tax incentives ensure reduced risk and increased returns.

(Source: InBusinessNews)