Nicosia, Cyprus. Cyprus ranked 15th globally and first in Southern Europe for its innovation business environment, according to the Innovators Business Environment Index 2026 published by StartupBlink. The ranking described Cyprus as an emerging innovation hub, citing performance across taxation, incentives and market attractiveness.
Rankings and key indicators
According to the index, Cyprus achieved first place in the European Union for taxation and ranked 10th worldwide on the same indicator. The country was also placed second in the European Union for business incentives.
Cyprus ranked within the top 25 per cent worldwide for key indicators, including corporate tax, capital gains tax and dividend tax rates.
Research and Innovation Foundation response
In an announcement accompanying the rankings, the Research and Innovation Foundation (RIF) said the results “demonstrate that Cyprus has strong foundations for further growth” in innovation-driven activity. The foundation added that, according to the report, “Cyprus offers one of the most competitive environments for innovation” and said that “its initiatives facilitate scientific and commercial endeavours”.
About the index
The Innovators Business Environment Index assesses more than 125 countries and evaluates them across 30 parameters, focusing on operational ease, incentives and global market perception.
How do you think Cyprus’ taxation and incentive rankings could influence innovation-focused companies considering expansion?
