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Cyprus Support Schemes
A co-financing action that will support existing and new Small and Medium-sized Enterprises (SMEs)
is expected to be launched. The aim of this action is to support SMEs in all sectors to upgrade and
improve their competitive position in the internal and external markets, by investing in their
technological modernization to enhance their competitiveness.
The action will support existing and new SMEs as defined in Commission’s Recommendation
2003/361/EC, which prior to the date of the on-line submission of the financing proposal:
• employ no more than 250 Annual Work Units (One annual work unit, corresponds to the work
performed by one employee on a full-time basis) or the annual turnover or the annual balance
sheet total does not exceed EUR 50 million,
• operate legally with the proper operating license in accordance with the applicable law. In
case the license has not been issued or has expired, it is necessary to present the relevant
application for its issue / renewal,
• can cover the required own subsidy as defined by the program guide. To cover the required
own subsidy, the potential beneficiary may use own financial resources (own contribution)
and / or a bank loan,
• are not “companies in difficulties” and are not bankrupt, liquidated or forced to manage,
• the total amount of support under the De-minimis rule previously received by the given
enterprise (as a whole), including support from this Action, does not exceed EUR 200,000 over
the past three years (De-minimis Rule).
BUDGET AND SUBSIDIES
The budget for each project may range from EUR 5,000 to EUR 40,000. The subsidy rate will be 50%. (Up to 50,000 EUR Subsidy for Agriculture and some other Sectors).
The Action will be a financing tool for the modernization of small and medium-sized
enterprises (SMEs). In particular, the following categories of expenditure will be financed:
1. Servers for hosting application software for the purposes of the investment. This
expenditure may include accompanying items such as keyboards, screens, etc.
2. Wired and / or Wireless Networking & Wiring Equipment Expenses including Routers, WiFi infrastructure, etc
3. Computers (Desktop and / or Laptop).
4. Office equipment (projectors, scanners, printers, etc.).
5. Other technological equipment related to the SME activities (portable terminals, electronic
Ιt is noted that eligible expenses are related to the supply, transportation, installation and
operation of new equipment necessary for the operation of the SME and the provision of the
services provided under the following conditions:
• The equipment supplied must be a new one.
• The costs are consistent with the SME’s capacity.
1. Office applications, antivirus, etc.
2. Website Development / Upgrade.
3. E-shop development and management services.
4. Software that support production optimization and/or business processes.
5. Customized ERP / CRM programs.
6. Specialized software related to the SME activity.
7. Software for electronic invoicing.
Eligible costs are software procurement costs under the following terms:
• The software provided must be a new one and the SME must become the legal owner under
a license of use.
• The provision of support services is eligible until the date of completion of the investment
• The cost of software / application customization and the training in its use is eligible as an
expense up to 40% of the software / application purchase cost. Please note that training costs
will be eligible only when they are included on the supplier’s invoice.
• “Software as a Service”, “cloud computing” or other similar services are eligible. In case it is
available on a pay-as-you-go basis, the eligible expenditure can only cover the period of
implementation of the investment plan.
• The software supplied must be in line with the company’s capacity.
The software development made by the beneficiary’s own means (self-production software) is not
Eligible are the services covering the following areas:
1. Hosting (hosting, collocation etc).
2. Connection to the Internet.
3. Digital marketing services (google ads, Facebook ads).
4. Services for the development of digital advertising material.
5. Translation services of the content of the online store.
6. Development and / or certification of digital security policy.
7. Recording, transformation and data transfer services.
Eligible is any form of service provided by third parties relating to the above during the
project’s implementation period.
The duration of the investment plan is set up to 36 months from the date of the adoption of
the accession decision. All eligible payments shall be made before the 12th month from the date that the contract was signed.
Proposals are expected to be submitted at the end of July or in September 2019, and service will follow a sequence of
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