Cyprus has strengthened its position on the global innovation map, ranking 15th worldwide in the Innovators Business Environment Index (IBEI) 2026 published by StartupBlink. The country also places first in Southern Europe and eighth across Europe, reflecting continued improvements in the conditions supporting innovative entrepreneurship.
According to the index, Cyprus has recorded a broad upgrade in the fundamentals that shape the creation, establishment, and growth of innovative businesses, including taxation, incentives, and regulatory clarity.
Innovation profile on the rise
Commenting on the ranking, the Research and Innovation Foundation (RIF) said the result confirms Cyprus’s emergence as a competitive international destination for innovation.
The foundation noted that the high placement points to strong structural foundations for further growth, adding that Cyprus now offers one of the most competitive environments for innovation globally, supported by targeted national programmes that boost scientific research and entrepreneurial activity.
StartupBlink assesses more than 125 countries using 30 different parameters. Cyprus performs above the European average in areas such as tax policy, business incentives, and ease of doing business.
In its analysis, StartupBlink highlights Cyprus’s legal transparency, international accessibility, and strategic policies supporting globally oriented entrepreneurs. The country’s geographical position and long-standing role as a regional trade hub are also cited as factors enhancing its appeal to companies with cross-border operations.
Taxation remains a key advantage
One of Cyprus’s strongest assets remains its tax framework. The country ranks first in the EU and 10th worldwide for taxation, signalling a business-friendly environment for investment and innovation.
Cyprus places within the top 25 percent globally for corporate tax rates, capital gains taxation, and dividend taxation. These indicators suggest a reduced tax burden for investors and startups, reinforcing the country’s attractiveness as a base for international innovation-driven activity.
Incentives and institutional support
Beyond taxation, Cyprus ranks second in the EU under the Business Incentives pillar, which evaluates fiscal and financial support available to businesses. This performance reflects both national entrepreneurship schemes and the effective use of EU co-funded financial instruments.
The country also scores strongly on ease of doing business, ranking 35th globally, a result linked to improvements in administrative procedures, regulatory clarity, and predictability, factors considered crucial for companies operating in fast-moving technology sectors.
The report further underlines the importance of institutional backing. The Research and Innovation Foundation is credited with managing initiatives that support scientific and commercial development, while Invest Cyprus is highlighted as the main interface for international investors, providing support throughout business establishment and expansion.