NEW DELHI: Cyprus is positioning itself as a launchpad for Indian artificial intelligence and media-technology firms entering the European Union, with President Nikos Christodoulides personally pitching the island nation's tax incentives and regulatory sandboxes to Indian enterprises at an investors' roundtable hosted by Invest Cyprus, the country's investment promotion agency.

The engagement, which featured executives from Indian technology companies including HT Labs — the innovation arm of HT Media Group — signals a sharpening of the India–Cyprus strategic partnership beyond traditional diplomacy into AI infrastructure, digital platforms, and intellectual property frameworks.

Tax incentives at the centre of the pitch

Demetris Skourides, Chief Scientist of the Republic of Cyprus, told participants that the country offers an effective tax rate as low as 3% on qualifying intellectual property income under its IP Box regime, along with a 120% deduction on eligible research and development expenditure, according to a statement issued by Invest Cyprus.

Skourides said the technology sector now contributes close to 16% of Cyprus's gross domestic product, citing the recent arrivals of innovation platform Plug and Play and semiconductor design firm Tenstorrent as indicators of investor confidence.

Dr. Nicodemos Damianou, Cyprus's Deputy Minister of Research, Innovation and Digital Policy, outlined plans for innovation sandboxes and regulatory frameworks designed to let companies test products rapidly while remaining within EU compliance structures, the statement said.

Indian firms weigh European base

Avinash Mudaliar, Co-Founder and Chief Executive of HT Labs, said Cyprus combines European market access with agile policymaking and a collaborative innovation ecosystem, calling it a compelling option for Indian businesses seeking scale in AI, media-tech, and digital infrastructure.

HT Labs indicated it is exploring the use of Cyprus's sandbox environments to test and scale its Technology-as-a-Service and Slurrp businesses, with potential co-development projects in AI-led media systems, recommendation engines, and content intelligence frameworks.

Evgenios Evgeniou, Chairman of Invest Cyprus, said in the statement that several major Indian enterprises had expressed "serious intent" toward investment and long-term partnerships, and that the agency would undertake structured follow-ups with participants.

Broader context

Cyprus, an EU member since 2004, has historically attracted Indian capital through shipping and holding-company structures. The current administration, which took office in 2023, has sought to reframe the country as a technology destination — a positioning that competes with established European hubs such as Ireland, Estonia, and the Netherlands for Indian tech investment.

The push comes as Indian software exports increasingly seek operational footprints within the EU to navigate the bloc's AI Act and data-protection rules, which took effect in phases beginning in 2024.

Stavros Stavrou, President of the Cyprus-India Business Association, also participated in the engagement, which Invest Cyprus described as part of a sustained outreach to Indian technology leaders.

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