fintechview met with Petros Archontides, the founder and director of NovoFin Audit & Consulting Ltd, a premium firm regulated by the Institution of Certified Accountants of Cyprus. During this insightful interview, Petros explained the key factors named Cyprus as one of the most attractive destinations corporate wise.
Is Cyprus indeed one of the most attractive destinations to develop a fintech organisation?
Indeed Cyprus has become a strong magnet for fintech companies in the recent years, and there are many reasons connected with this, if we want to see it from a wider point of view as well as extension, evolution of the past I would say Cyprus, became an attractive destination for financial, tax and corporate purposes which combines high standards of quality of living and at the same time maintain its values respecting both its local and foreign people which consider Cyprus as home and as centre for their international business.
Which are the key factors to support this?
I will highlight some of the key factors:
Strategic Location
Positioned at the crossroads of Europe, the Middle East, and Africa, Cyprus gives fintech firms access to multiple markets.
It’s inside the EU, which ensures access to the European Single Market, while also maintaining strong ties with non-EU countries in the region.
Business-Friendly Regulatory Environment
Cyprus has developed a modern, EU-aligned legal and regulatory framework, particularly in financial services, investment firms, and electronic money institutions.
The Cyprus Securities and Exchange Commission (CySEC) is widely recognized for supporting innovation in fintech and crypto-assets while ensuring compliance with EU directives (MiFID II, AMLD5/6, PSD2, MiCA in the future).
The regulator has been relatively proactive compared to some other jurisdictions, making it easier for fintech startups to obtain licenses.
Tax Benefits
Cyprus offers one of the lowest corporate tax rates in the EU at 12.5%.
Double taxation treaties with more than 65 countries make international operations more tax-efficient.
Attractive incentives for intellectual property (IP) and R&D, which fintechs often rely on.
Tax incentives for high network individuals and employees
Growing Talent Pool
Cyprus has a highly educated, multilingual workforce (English is widely spoken in business and law).
The island attracts international professionals thanks to its quality of life and relatively low cost of living compared to other European fintech hubs.
Fintech & Crypto Ecosystem
Cyprus has become a regional hub for forex, blockchain, and crypto companies, with many established firms already operating there.
Networking opportunities and clusters of service providers (law firms, tech developers, consultants) make it easier for new fintech entrants to scale.
Lifestyle & Infrastructure
Good quality of life, safety, and climate make Cyprus attractive for entrepreneurs and employees.
Strong IT infrastructure and growing co-working/startup hubs encourage innovation.
Government Support
Initiatives such as the Cyprus National Strategy on Blockchain & Distributed Ledger Technologies and innovation-friendly policies reinforce fintech adoption.
Incentives for startups, including simplified visa schemes for foreign talent and investment incentives, further enhance the ecosystem.
Can you please share your thoughts on how fintech companies can utilize Cyprus tax incentives?
By default, the corporation tax of Cyprus is one of the lowest in EU at 12.5% on net profit however especially for Fintech Companies including softwares, platforms , gaming and other related companies Cyprus is offering the “IP regime”
Key characteristics is that:
Cyprus’ IP regime allows an 80% tax exemption on qualifying IP profits, producing an effective tax rate of ~2.5% on those profits.
The IP regime follows the OECD “nexus” approach which this means the tax benefit is connected to the amount of R&D costs economically attributable to the IP
Of course, each case should be carefully examined by professionals in order for the companies to have a clear understanding of the expectations around the IP regime and whether it is applicable or not. The main reason I mention this is because we have seen cases where the incorrect approach or use of the IP puts at risk the entities. Novofin as Audit ,tax and Consulting firm is one of the areas we feel very confident to assist.
“Cyprus has a highly educated, multilingual workforce while the island attracts international professionals thanks to its quality of life and relatively low cost of living compared to other European fintech hubs.”
Who is Who
Petros Archontides is the founder and director of NovoFin Audit & Consulting Ltd, a premium firm regulated by the Institution of Certified Accountants of Cyprus. He has over 18 years of experience in the financial sector and leads a team of high-level educated professionals with extensive experience in audits, tax, payroll, and consulting services. Petros emphasizes understanding and mutual respect in client relationships, ensuring personalized and professional services, serving in Cyprus as well in international and European markets. NovoFin in this dynamic environment, supporting clients in creating value, stability, and sustainability in their businesses .
