The Cyprus Research and Innovation Fund has once again allocated funds for the development of innovative products and services in the country.
On Monday 5 August, the next phase of the Pre-Seed programme, which aims to support new start-ups, was launched in Nicosia.
Under this initiative, participants can receive up to €119,000 to develop their ideas. The grant will cover 85% of the start-up costs.
The total budget for the next phase of the Pre-Seed programme will be €1.2 million. The main condition for winning the competition is that the product or service to be developed has a high chance of reaching international level. Applications can be submitted on the platform iris.research.org.cy until 1 November 2024.
The competition projects will be evaluated by a special commission consisting of seven people. Among them: representatives of the European Innovation Council and the Directorate for Innovation, entrepreneurs and venture capitalists. Representatives of the teams that have applied for participation in the competition will have to present their business strategies for the development of start-ups to the members of the selection committees and answer questions about the potential and stages of implementation of their ideas.
It is worth noting that institutions selected for funding will automatically benefit from free innovation support services and knowledge transfer tools. The project is co-funded by the Republic of Cyprus and the European Regional Development Fund (ERDF) under the Political Cohesion Programme "THALEIA 2021-2027".
We would like to remind you that Cyprus has been attracting foreign companies for many years.
This is because the island remains one of the most convenient entry points to the international market, especially the European market. This is facilitated by favourable legislation, an active entrepreneurial community and the government's policy towards technology companies: both start-ups and large companies are attracted by preferential tax rates and various government support programmes. According to a recent study by international consultancy firm PwC, there are currently more than 50 start-ups on the island, located in Nicosia, Limassol and Larnaca.
Cyprus offers excellent conditions for the development of start-ups.
For example, new companies can obtain a so-called startup visa, which allows them to live and work in Cyprus for at least two years. This programme was launched in 2017 and has since been extended and its conditions revised several times. Startup visas are designed for sole proprietorships with a team of no more than five people (this can be the co-founder and top managers) - all third-country nationals with relevant education and a good command of English or Greek. In addition, the company must have access to seed funding of at least €20,000 from sources such as venture capital, crowdfunding and others.
In addition, the company must be "innovative", i.e. it must have spent at least 10% of its operating expenditure on research and development in at least one of the previous three years. If the company has not yet been commercially active, it is assessed based on its business plan. To be eligible for the status, a company must have its registered office in Cyprus and be a Cypriot tax resident. Applications for the status are assessed by the Sub-Ministry of Research, Innovation and Digital Policy. If approved, a certificate is issued, which is valid for three years. Start-ups are given two years for promotion, during which the owners, employees and their family members have the right to reside and work in Cyprus. If the project is successful, this period can be extended indefinitely.
The procedure for obtaining a start-up visa includes the following steps
1) Submitting a start-up application by e-mail with an attached business plan and documents proving funding of at least 20,000 euros. It takes up to five weeks to assess the application. If approved, the applicant will receive a temporary work permit for two years.
2) Apply for a visa (it is processed within three weeks, the visa with the right to work is issued for one year with the right to extend for another year).