Cyprus unveils major incentives for investors in Pentakomo Science and Technology Park
- aina246
- Jun 23
- 2 min read
Updated: Jun 25
The Republic of Cyprus has announced a package of incentives aimed at attracting strategic investors to the Science and Technology Park (STP) in Pentakomo, Limassol district. The announcement was made in tandem with the tender launch for leasing government land dedicated to the development of the park.
Located just 16 km from Limassol and adjacent to existing R&D and energy facilities, the Pentakomo STP aims to become a hub for high-tech sectors including ICT, robotics, smart systems, biotech, and environmental technologies. The park is designed to host research institutions, incubators, and private tech firms within an integrated and environmentally conscious master plan.
Interested strategic investors are invited to submit proposals in accordance with the detailed technical, financial, and eligibility criteria. Proposals will be evaluated based on rent offer and compliance with the development vision. The deadline for submitting tenders is Friday, 12 September 2025.
Key incentives offered to investors:
Tax Incentives
Up to 50% income tax exemption for 17 years for high-earning expatriate employees (€55,000+ salary).
20% tax exemption (up to €8,550) for other qualifying expatriate employees.
80% tax exemption on profits from intellectual property (IP) under the nexus approach.
Loss carry-forward of up to 5 years and tax deductions for investing in innovative SMEs.
Investment Aid
Up to €3 million in state aid, equal to 10% of eligible investment (buildings and equipment), if development schedule milestones are met.
Includes infrastructure costs, renovations, and eligible ICT equipment.
Aid is deducted from market rent over time.
Favorable Lease Terms
50-year land lease with an option for renewal.
Rent-free period of 5 years, significantly reducing early-stage operating costs.
Planning Incentives
Increased building ratios (up to 0.45:1) for projects meeting architectural and green development benchmarks.
Additional flexibility for bioclimatic design and renewable energy integration.
Renewable Energy Benefits
Strategic investors may install up to 5 MW of solar energy capacity for self-consumption, ensuring lower operational energy costs.
Fast-Track Licensing & Infrastructure
Government guarantees completion of roads, utilities, and telecommunications infrastructure within 18 months of lease signing.
Supportive regulatory framework for work and residence permits for non-EU skilled employees.
The technology sector in Cyprus has experienced rapid expansion in recent years, now contributing over 10% to the country's GDP. This growth reflects a broader strategic push by the Cypriot government to position the island as a regional tech hub. Authorities have implemented targeted policies and incentives aimed at attracting more corporate headquarters, high-growth tech startups, and remote professionals. These efforts are part of a national vision to diversify the economy, boost innovation, and strengthen Cyprus's role in the global digital economy.
For further information, investors can access the full tender documentation and appendices through the Ministry of Energy, Commerce and Industry or the official procurement portal.
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