Cyprus SME Digital Grant 2025 – 50% Co-Funding Available

Cyprus SME Digital Grant 2025 – 50% Co-Funding Available

Impact

The Digital Transformation Scheme for Enterprises 2025 drives the digital transformation of Cyprus SMEs under the ΘΑλΕΙΑ 2021–2027 framework, encouraging adoption of AI, blockchain, cloud-native architectures, and e-commerce to boost competitiveness and growth.

Program Objectives

• Support the digital transformation of existing and new SMEs
• Promote digital entrepreneurship
• Encourage use of modern technologies like AI, cloud, IoT, and blockchain
• Strengthen Cyprus’ overall digital economy

Total Budget & Co-funding

• Total budget: € 20 million
• 2025 call allocation: € 14 million
• Co-financing: Republic of Cyprus & the European Regional Development Fund

Who Can Apply?

SME Definition:

• Staff: < 250
• Turnover: ≤ € 50 million or Balance sheet: ≤ € 43 million

You’re eligible if you are:

1. Existing SMEs: Established and active before 1 January 2024
2. New SMEs: Established in/after 2024, or inactive until 31 December 2023, provided they include an e-shop or advanced digital tech in their proposal

Exclusions:

• Primary agricultural producers & fisheries
• “Problematic” enterprises under EU Reg. 651/2014

Budget, Intensity & Funding

Eligible Expenses

1. Off-the-shelf software (licenses & cloud/SaaS up to 36 months)
2. Specialized IT systems
   • ERP, CRM, BI, bespoke development
   • E-shop platforms, Automations, IoT, AI, blockchain, data analytics
3. Digital marketing
   • Up to 10% of e-shop budget (max €4,000)
   • Online promotion & SEO services
4. Consultancy
   • Needs analysis & project management (max €1,000)
5. Hardware
   • Servers, firewalls, SAN, handheld terminals, electronic shelf labels, RFIDs (only if integral to the digital upgrade)

Not Eligible: Maintenance contracts, simple websites, refurbished equipment, GPS devices, VAT

Application Process & Timeline

1. Call Publication: April 2025 on the Ministry portal
2. Submission: Online via ΥΕΕΒ — one proposal per call, open until funds are depleted
3. Eligibility Check: Formal docs, financials, de minimis compliance
4. Evaluation & Ranking:
   • Automatic ranking by submission timestamp
   • Possible on-site verifications
5. Scoring Criteria:
   • Quality: Clarity, completeness, deliverables & timelines
   • Relevance: Alignment with scheme objectives
   • Viability: Financial capacity & sustainability
6. Implementation Period: Up to 12 months from contract signature
7. Payments: Upon submission of paid invoices & proof of payment
8. Audits: Random checks up to 3 years post-completion

Required Documentation

• Audited Financial Statements for 2022–2023 (or tax returns for micro-enterprises)
• 2024 Revenue Statement or sworn turnover declaration
• Bank Statement or Loan Approval Letter for own contribution
• De minimis Declaration, signed by an auditor or executive
• Conflict of Interest Declaration for consultants (if claimed)
• Detailed Quotes for each expense (technical specs & cost breakdown)

How to Apply

Applications are submitted online via: 👉 https://fundingapps.meci.gov.cy

⏱️ Tip: Evaluation is first-come, first-served. Apply early for a better chance.

💡 Note: Although the application process does not strictly require a business consultant, around 98% of businesses choose to work with one to maximize their chances of approval. In fact, using a business consultant is encouraged by the grant itself, as it covers consultant costs up to €1,000.

How We Can Help

At Kodeosity, we can help you in:

• Crafting grant-eligible e-commerce and software solutions
• Supporting you through the entire application process via digital consultations
• We can collaborate with your business consultant in order to meet government grant criteria

FAQs

Don’t Miss Out

This is a unique opportunity to transform your business with government support. Let’s build your application together and create a digital solution that moves your business forward.