Access to information

The Youth Board of Cyprus launched in February 2025 a new service that aims at providing young people with information about funding opportunities to create a start-up and specific professional guidance.

Specifically, specialised Counsellors provide free, personalised guidance and support, through one-to-one meetings, to interested young people up to 35 years old, as described below:

• Young people who may wish to make their own start in the field of entrepreneurship.
• Young people who are already active in business and are facing various challenges in their entrepreneurial activities.
• Young people who are interested in applying for or have already been approved for a grant under the Scheme for the development of New Business activity (Σχέδιο Ενίσχυσης Νέας Επιχειρηματικής Δραστηριότητας) of the Ministry of Energy, Trade & Industry.
• Young people who wish to learn about their responsibilities and obligations in relation to registering and operating a business and resolve queries in relation to business lending, finance, taxation, investment, marketing, sales, human resources or other related issues associated with the above mentioned topics. 

Access to capital

The grant-based schemes for young entrepreneurs specific for start-up creation are the following:

1. The Scheme for the development of New Business activity (Σχέδιο ενίσχυσης νέας επιχειρηματικής δραστηριότητας) under the umbrella of the Ministry of Energy, Commerce and Industry. The program aims to develop, support and promote entrepreneurship, by focusing on specific target groups, such as young people and women who wish to do business in any economic activity, utilizing their knowledge, experience and talents. Beneficiaries are unemployed or employed, (a) young people aged 18-29, (b) men aged 30-50 and (c) women aged 30-55. Young people aged 18-29 are entitled up to 70% of funding. The Ministry oversees the "New Business Activity Funding Scheme" (Σχέδιο Ενίσχυσης Νέας Επιχειρηματικής Δραστηριότητας) with a special emphasis on youth. Notably, the Funding Scheme (New Entrepreneurship Support Plan in National Reform Programme 2024, p.8) received 820 applications from both young men and women in the 2021 call, illustrating a robust interest in supporting new entrepreneurial ventures. The budget allocated for this call amounts to €46.8 million. 

2. The Cyprus Entrepreneurship Fund (CYPEF), as detailed in the National Reform Programme 2023, continues its support for both working capital and investment loans to Small-Medium Enterprises.

3. Tax relief for investments in innovative SMEs: As mentioned in the National Reform Programme 2023, the initial tax scheme for investing in start-ups and innovative companies, which was operational from 2017 until 30 June 2021, provided 50% tax relief, up to €150 000 per year, for private investors investing in certified innovative companies. An extension period has been announced until 30 June 2024.

Lastly, it has to be underlined that a new law regarding the establishment of Social Enterprises was voted by the Parliament in December 2020 (ο περί Κοινωνικών Επιχειρήσεων Νόμος του 2020 (Ν.207(Ι)/2020) and its amendment in 2023, which creates a positive environment for the creation of new business endeavor for young people. However, due to lack of financial incentives by the government, the Law is still ineffective.