Cyprus outlines business funding, cost-of-living measures and technology cooperation

Nicosia, Cyprus. An EU-backed entrepreneurship scheme is projected to support around 800 new businesses and more than 1,600 jobs, as Cyprus directs cohesion-policy funding towards business development, research, transport and urban projects. The government is also assessing further cost-of-living measures, while two organisations have agreed to strengthen cooperation between international investors and Cypriot technology companies.

Entrepreneurship funding

Themis Christophidou, Director-General of the European Commission’s Directorate-General for Regional and Urban Policy, highlighted the business and jobs projections during the Cyprus Forum 2026 in Nicosia.

Official funding data show that the projections apply to the full €50 million New Entrepreneurship Activity Scheme, not solely to its €30 million allocation. Under the THALIA 2021–2027 programme, the scheme comprises a €30 million call launched in 2021 and a further €20 million call in 2024. The programme estimates that the combined funding will create 800 businesses and more than 1,600 jobs.

Household support

The Finance Ministry said on Monday that it was assessing geopolitical developments and their effects on households daily. It said the government was preparing further measures to address rising living costs while making full use of available options without putting public finances or European obligations at risk.

Measures already in force, particularly for vulnerable groups, include zero VAT on fresh fruit and vegetables, meat, poultry, fish, baby milk, nappies for children and adults, and feminine hygiene products. Around 33,000 low-income households and single-parent families receive a reduced VAT rate of 5 per cent on electricity, according to the ministry.

Technology cooperation

The Cyprus Information Technology Enterprises Association (CITEA) and Invest Cyprus signed a memorandum of understanding to strengthen links between international investors and Cypriot technology companies. The agreement provides for closer institutional cooperation and joint initiatives in artificial intelligence, investment and international outreach, with an emphasis on connecting foreign companies choosing Cyprus with technology businesses already operating on the island.