Cyprus Fact-File Part 5:
Small Business Incentive Programs

5.1 Cyprus Small Business Support Schemes

Government and municipal incentive programs for small business

The Cypriot Investment Promotion Agency (CIPA) was established by the government in 2008 (succeeding the Foreign Investors Centre at the Ministry of Commerce, Industry and Tourism), and has as its aims the promotion of Cyprus internationally as a location for foreign investment, advocating reforms with a view to improving the regulatory environment for businesses and investors, and providing aftercare and support for investors.

The government has also established the Research Promotion Foundation, which, as the name suggests, exists to support businesses undertaking research and development activity from Cyprus.

The Industrial Development Service has provided, and continues to provide, various types of support across the manufacturing sector.
Various kinds of assistance, including the provision of grants and support, are offered to manufacturing enterprises looking to technologically ‘upgrade’, via investment in new machinery and training, to the creation of new manufacturing enterprises in rural areas, to small businesses looking to relocate to designated areas, and to SMEs looking to expand their e-commerce activity.

Business Start-Up Schemes

The government is keen to encourage youth entrepreneurship, and female entrepreneurs, and to this end, put in place a grant programme for enterprises established by women in the manufacturing sector, and in certain areas of the commerce, services and tourism industries. The programme, applied annually, can provide up to 50% of the approved budget (subject to an upper threshold) for a qualifying enterprise.

Support Programs For Bank Lending

The government provides a guarantee scheme for loans granted to certain types of SME (primarily in the manufacturing sector), where the loan will be used to restructure or expand an existing business, or establish a new business (an emphasis on the manufacture of new and/or high tech products is preferred).