The Cyprus Chamber of Commerce and Industry (Keve) has called for a serious review of Cyprus’ competitiveness following reports that technology company BrainRocket has closed its Limassol offices and offered most remaining employees relocation packages abroad.

In a statement, the chamber said the reported scaling back or possible termination of BrainRocket’s Cyprus operations should be approached carefully, while warning that an outcome of this scale should prompt wider discussion about the conditions facing businesses on the island.

“Without official and comprehensive information from the company itself, it would not be right to draw conclusions about the reasons behind its business decisions,” Keve said.

“At the same time, however, an event of this magnitude should not go unnoticed or rule out a serious public dialogue about the competitiveness of our country,” it added.

BrainRocket has reportedly closed all its Limassol offices and other leased facilities over the past month, with its signs removed from at least two locations.

Employees still working in Cyprus were reportedly instructed to work remotely until further notice, while most were offered relocation packages to Spain or other countries where the company operates.

The developments follow a year-long withdrawal from Cyprus which began in summer 2025, when BrainRocket started transferring a substantial part of its operations from Limassol to Valencia.

The company employed around 1,500 people in Cyprus at the time, with more than 1,000 understood to have been affected by the restructuring.

Hundreds were offered relocation packages, mainly to Valencia, while a smaller part of the operation was expected to move to Malta.

Keve said Cyprus continued to have significant advantages as a business and investment destination, including its EU membership, professional services sector, skilled workforce and geographical position, alongside its growing technology and innovation sector.

The chamber said the arrival and expansion of major international companies in recent years demonstrated the country’s ability to attract investment.

“These advantages, however, cannot be taken for granted,” Keve said, warning that international competition for businesses and talent was intensifying.

It said Cyprus needed to assess issues including operating and energy costs, housing, bureaucracy, licensing and immigration procedures, infrastructure and access to specialised staff.

A stable and predictable tax and regulatory environment was also essential, Keve said.

The chamber said it wanted to work with the government to assess the circumstances surrounding the BrainRocket case and continue dialogue with businesses in the technology and wider commercial sectors.

“The common objective is the timely identification of challenges and the formulation of practical solutions that will further strengthen the competitiveness and attractiveness of the country as a business and investment destination,” Keve said.

Keve stressed that the decision of a single company did not undermine the wider prospects of the Cypriot economy, but argued that developments of this kind should be used to identify potential weaknesses and respond to them.

“A single business decision does not negate the dynamism and prospects of the Cypriot economy,” the chamber said.

“Every such development, however, is an occasion for reflection, assessment and action, so that Cyprus can remain a modern, reliable and genuinely competitive destination for international and domestic businesses,” it added.

The intervention comes amid wider concerns from business groups about whether Cyprus can maintain its attractiveness to international companies as tax and regulatory conditions evolve.

The American Chamber of Commerce in Cyprus (AmCham Cyprus) has separately called for a balanced implementation of the OECD/G20 Pillar Two international tax framework, saying changes could affect future investment, employment and Cyprus’ position as an international business hub.

AmCham Cyprus said it supported international tax co-operation, transparency and compliance with OECD and EU frameworks, but argued that implementation should be evidence-based and take account of Cyprus’ competitiveness.

It said it had received concerns from international investors, multinational companies, business leaders and professional services providers about the effect of evolving Pillar Two rules on future investment decisions.

Some US-headquartered multinationals could reconsider expansion plans, choose alternative jurisdictions or decide against establishing operations in Cyprus if the country’s competitive position weakened, the chamber warned.

AmCham stressed that the scale of any such impact remained uncertain, but said the concerns justified an objective assessment of the potential effects on investment flows, employment and long-term economic growth.

Keve, meanwhile, said its “longstanding co-operation with the government provided an opportunity to examine the broader business environment” and “identify practical measures before competitiveness concerns became more pronounced“.