Programme Category
Programme Name
Programme Description
The third Policy Axis aims to improve the competitiveness and resilience of the Cypriot economy. In addition to the other axes, it includes measures that contribute to the promotion of a new model of development and international competitiveness of the Cypriot economy, based on the results of the relevant study of the Cyprus Economy and Competitiveness Council.
Includes investments and reforms to expand the productive base by strengthening the primary and secondary sectors of the economy, improving competitiveness and the business environment, mainly by supporting small and medium-sized enterprises (SMEs), diversifying and strengthening the tourism product, modernizing public administration and local authorities, reform and improve the efficiency of the judiciary, fight corruption and enhance transparency, enhance research and innovation, and the resilience of the financial sector and the financial situation.
Identifier Code
Call
Summary
The Scheme aims to encourage investments in digital entrepreneurship and to strengthen the degree of integration of digital technology in existing or new SMEs, thus contributing to the strategic objectives of the Cyprus Recovery and Resilience Plan (RRP) to strengthen and accelerate the digital transition of the Cypriot economy. The main objectives of the Scheme are:
- The contribution to the digital transformation of the Cypriot economy
- The promotion of digital entrepreneurship.
- The increase in the number / percentage of small and medium enterprises that use information and communication technologies, including the field of e-commerce.
- Strengthening the digital identity of businesses.
- The creation of new opportunities for businesses through digital transformation.
The promotion of digital technology actions and advanced digital technologies such as artificial intelligence (AI), Blockchain, cloud computing and big data.
Detailed Call Description
The Scheme is included in the Recovery and Resilience Plan (RRP) of Cyprus for the period 2021-2026 and will be financed by the Recovery and Resilience Mechanism of the European Union (EU).
The total amount that will be allocated for the financing of the Scheme, during its implementation period, amounts to €10 million, with the possibility of submitting proposals for €14 million so that if savings occur during the evaluation of the proposals, the runner-up businesses to join the Scheme.
The minimum amount of the eligible total budget of a proposal (eligible expenditures) is set at €5,000. The intensity of the subsidy (% subsidy) amounts to 50% of the eligible budget of the proposal with a maximum subsidy amount of €50,000.
In the case of companies that are established or will be established in mountainous and disadvantaged areas, the intensity of the subsidy (% subsidy) amounts to 60% of the eligible budget of the proposal with a maximum subsidy amount of €60,000.
The potential beneficiaries of the Scheme are existing small and medium-sized enterprises (SMEs) that will implement expenditures in the category of digital upgrading (including e-commerce), as well as new small and medium-sized enterprises whose investment proposal necessarily includes e-commerce and/or the application of advanced digital technologies.
Businesses should be established or established in Cyprus, excluding areas where the Government of the Republic of Cyprus does not exercise effective control due to the Turkish invasion.
The companies that can receive a subsidy under the Scheme are those that undertake the implementation of investment in eligible sectors and activities and as such are those that are not included in Annex I of the EU Treaty. Therefore, the following economic activities are excluded:
- Business activities related to the primary production or processing or marketing of agricultural products as listed in Appendix I of the Treaty of the European Union
- Activities related to the fishing and aquaculture.
The Scheme is adapted and will be implemented based on Regulation (EU) No. 1407/2013 of the Commission of 18 December 2013, regarding the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid. Based on Regulation (EC) no. 1407/2013 of the Commission and specifically Article 3, paragraph 2 of the Regulation, the total amount of de minimis subsidies that can be subsidized to a single company per three (3) financial years amounts to € 200,000.
Closing date of call: 31/03/2023 or until the exhaustion of the amount of €14 mil.
Call Total Budget
Financing percentage by EU or other bodies / Level of Subsidy or Loan
The grant is given as a percentage on the entire eligible investment (50%) with a maximum grant of € 50,000 per enterprise.
In the case of businesses that are established or will be established in mountainous and disadvantaged areas, the grant is given as a percentage on the entire eligible investment (60%) with a maximum grant of €60,000 per enterprise.
Thematic Categories
- Small-Medium Enterprises and Competitiveness
Eligibility for Participation
- Small and Medium Enterprises (SMEs)
Eligibility For Participation Notes
Small-Medium Enterprises and Competitiveness
Call Opening Date
Call Closing Date
National Contact Point(s)
Industry & Technology Service
Persons to Contact:
Name: Elena Rousou
Commerce and Industry Officer A’
Τelephone: 22867149
Email: erousou@meci.gov.cy
Fax: 22867253
Name: Petros Michael
Officer for Schemes (fixed-term employee)
Telephone: 22867236
Email: pmichael@meci.gov.cy
Fax: 22867253
(Publish Date: 21/02/2023-for internal use only)