How the new Pentacomo Science and Technology Park will transform the market and innovation

The establishment of the Science and Technology Park in Pentakomo marks an important stage in the development of the Cyprus economy. The project is intended to become a catalyst for innovation, uniting under one platform business, scientific institutions and the academic environment for the active exchange of knowledge and the promotion of high-tech solutions.

The goal of the initiative is to create a dynamic ecosystem that will facilitate the development, transfer and commercialization of technologies. The project is being implemented with the support of the Ministry of Energy, Trade and Industry, which has already initiated the process of finding a strategic investor through an international competition.

Conditions for growth and synergy

With the Limassol area already taking on a significant share of the island’s tech sector, the new tech park takes on particular significance. Around 14% of Cyprus’ GDP is generated by tech companies, and the new infrastructure will provide impetus for even more rapid growth.

The park will serve as a link between startups, research centers and universities. It is planned to create an environment that promotes cross-industry partnerships and the development and implementation of cutting-edge developments. Companies will have access to research and development (R&D) opportunities, technology transfer mechanisms and specialized support services aimed at accelerating their growth and increasing their market impact.

Infrastructure and support from the state

The state will undertake to provide key infrastructure: transport networks, energy communications, water supply systems and administrative buildings will be built. In addition, the territory will be improved – pedestrian areas, lighting, security and drainage systems.

The government incentive package includes financial and tax incentives, as well as up to €10 million in support for investors, subject to the construction deadlines and parameters. These measures are aimed at attracting private capital and ensuring the stable operation of the facility in the long term.

New Competence and Personnel Center

One of the key elements of the park concept is interaction with educational and research institutions. It is planned to organize training programs for specialists who meet the requirements of the technology sector. This will create a highly qualified personnel reserve necessary for the digital transformation of the economy.

The park will also become a venue for international conferences, exhibitions and events, strengthening Cyprus’ position as a regional hub for innovation and investment.

Long-term lease and economic support

The development of the Cyprus Technology Park is being carried out on a long-term land lease model, which provides stability and predictability for investors. The initial lease term is 33 years, with the possibility of extending it for two more periods, making the project particularly attractive to companies with a green focus.

Under the terms of the scheme, financial assistance provided under the scheme will be deductible from rent for the first 33-year period. This significantly reduces start-up costs and facilitates the successful launch and stable operation of companies. This structure creates a solid foundation for business and forms a favorable business environment within the Park.

Tax incentives: supporting innovation

Cyprus offers unique tax advantages under its intellectual property tax regime. 80% of profits from copyrighted objects are exempt from taxation, making the country an ideal location for companies engaged in development and research activities.

There are also tax benefits for employees:

1. 50% income tax exemption on income over €55,000 per year (provided that the employee has not been a tax resident of Cyprus in the last 10 years).
2. For workers with income below this amount, there is a tax exemption of 20% or up to €8,550 over seven years.

Urban development policy and architectural possibilities

Initially, the development ratio of the Science and Technology Park is set at 0.40:1. However, under special circumstances, justified by the feasibility study of the park project, the ratio may be adjusted to 0.45:1.

The maximum permitted building area is 65,000 m², taking into account any other benefits and exemptions from urban planning, while maintaining a balance between administrative and industrial premises.

In some cases, standard building heights may be exceeded to preserve sea views, architectural integrity and create open spaces on the ground floor.

Support for green energy

The project is focused on green development, including measures to reduce operating costs through the introduction of renewable energy sources. Investors are allowed to install photovoltaic systems with a capacity of up to 5 MW for their own needs. In addition, they can take advantage of government grants for energy-efficient technologies, subject to the relevant conditions.

Properties that use renewable energy systems may qualify for international green certifications such as LEED or BREEAM, making them more attractive to eco-conscious tenants.

Improved conditions for investors and specialists

Cyprus has extensive visa and work permit options for investors, researchers and highly skilled professionals. The Startup Visa Programme allows non-EU entrepreneurs to establish innovative, high-growth start-ups in the Technology Park. The programme provides:

• residence and work permit for the entrepreneur and his family;
• the possibility of hiring citizens of non-EU countries under a simplified procedure;
• three-year visa with the possibility of extension.

Foreign specialists hired in the Technology Park for positions requiring high qualifications (e.g. researchers, engineers) receive work permits through an accelerated procedure. Permits are valid for the entire period of employment and can be extended based on current employment contracts.

Golden Knowledge Program: A Simplified Path to Citizenship for Professionals

The Golden Knowledge program provides an opportunity to obtain Cypriot citizenship on an accelerated basis for specialists in the fields of science, innovation and knowledge. Depending on the level of proficiency in the Greek language, the period of residence on the island required to apply for citizenship is:

• 5 years (with knowledge of Greek at level A2 ) ;
• 4 years at B1 level of Greek language proficiency.

The program also applies to immediate family members of the applicant, including spouses and dependent children.

Fast way to permanent residence through investment

Investors can obtain permanent residency by investing over €300,000 in new residential or commercial property in Cyprus. A prerequisite is that they have sufficient annual income from abroad to maintain their residency status.

This route is especially popular among foreign citizens seeking stability and the opportunity to legally reside on the island without complex bureaucratic procedures.

Simplified employment for third-country nationals

Cyprus is creating favourable conditions for the employment of highly qualified specialists from third countries in high-demand sectors such as information technology, energy and nanotechnology. Employers will benefit from a quota exemption for critical positions related to the strategic objectives of the Science and Technology Park.

Temporary Work Visas for Scientists and Researchers

Temporary work visas for up to one year are available for specialists involved in short-term projects or international scientific collaborations. This measure ensures flexibility and efficiency in the implementation of research initiatives.

Government support

The Government of Cyprus actively promotes the development of the project by providing:

• accelerated receipt of all necessary construction permits;
• minimization of administrative barriers;
• attracting government organizations and centers of excellence as early tenants, which will ensure financial stability and strengthen the Park’s reputation as a leading innovation center.

Four priority areas of the park’s activities

The Pentakomo Science and Technology Park will focus on the following key areas:

1. Energy and energy storage.
2. Healthcare and medical technology.
3. Nanotechnology and advanced materials.
4. Digital technologies, including software and video game development.

Available space and future expansion possibilities

The total area allocated for the project is 192,620 square meters. Of this, approximately 30% is intended for the creation of an internal road network, public spaces and infrastructure. Thus, approximately 134,834 square meters will be allocated for research laboratories, offices, innovation centers and other scientific activity facilities.

Despite the moderate size of the site, the project has considerable potential. European experience shows that even smaller science parks, such as DTU in Denmark or Technopol in Estonia, have achieved high results thanks to efficient spatial organization and an emphasis on innovation.

It is important to note that further expansion of the territory is not envisaged by the state – it will be possible only at the initiative of the investor. This requires thoughtful planning at an early stage of implementation, taking into account the development prospects and changes in technological trends.

The project provides for flexible development organization, including:

• the possibility of further expansion and modernization of infrastructure (electricity grids, water supply, roads, sewerage);
• maintaining high standards of functionality, aesthetics and construction quality;
• flexibility in building layout for future changes and restructuring.

Text based on materials from www.inbusinessnews.reporter.com.cy.com, photo pixabay.com