The Research and Innovation Foundation (RIF) on Friday announced the launch of ‘Boost,’ a new blended finance scheme.
The new scheme is designed to support certified innovative companies in Cyprus by providing grants of up to €300,000.
The initiative aims to bolster innovation and enhance the entrepreneurial ecosystem by incentivizing equity-based investments.
Under the Boost scheme, certified companies can access grants covering up to 50 per cent of their secured equity-based investments, provided the investment is at least €200,000.
To assist interested parties, RIF will host an informative webinar on January 30, 2025, at 11:00 AM.
Registration details can be found here.
Additional information, including Call documents and FAQs, is available here.
Guidance on obtaining an Innovation Certificate can be accessed via here, while the list of Certified Innovative Companies is listed here.
The Boost programme is complemented by a comprehensive tax incentive framework for investors in innovative companies.
Governed by the Income Tax Law, the framework offers significant deductions to both individual and corporate investors.
Independent investors may deduct up to 50 per cent of eligible investments, subject to specific caps.
For individuals, the annual deduction cannot exceed €150,000, with unused amounts carried forward for up to five years. Legal entities can deduct up to 30 per cent of eligible investment expenses annually, also capped at €150,000.
These tax benefits remain in effect until December 31, 2026.
Eligible investments must involve the acquisition of newly issued ordinary shares held for a minimum of three years.
To qualify as an Innovative SME, a company must either operate as a startup or demonstrate significant research and development (R&D) activity.
Certification is issued by the Deputy Ministry of Research, Innovation, and Digital Policy. Companies are categorised into three groups: existing enterprises with a financial history, startups without financial history, and entities with prior EU or national funding.
Existing enterprises must show that at least 10 per cent of their expenses have been allocated to R&D over the last three years, while startups are evaluated based on their business plans.
Companies that have secured EU programme grants or Startup Visas are automatically recognised.
Applications for certification are processed within one month, with renewals requiring updated proof of R&D expenditure. Certifications remain valid for three years and are listed in a public registry maintained by the Deputy Ministry.
