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Cyprus Unveils Ambitious Plan To Become A Regional Research And Innovation Hub By 2035

by THEFUTURE.TEAM

July 23, 2024

In a bold move to position itself as a leader in research and innovation (R&I), Cyprus has unveiled a comprehensive strategy aimed at transforming the nation into a regional hub by 2035. Presented by Chief Scientist Demetris Skourides at the Cyprus Rectors’ Conference, the strategy outlines a robust roadmap designed to elevate the country’s R&I ecosystem.

The roadmap, developed after extensive consultations with over 650 stakeholders including research organisations, startups, and established enterprises, is built on simplifying processes, enhancing customer experience, and ensuring transparency. Key initiatives include the introduction of a new grants management system by 2025, aimed at reducing administrative burdens and allowing researchers to focus on their scientific and commercial pursuits.

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Cyprus has already made significant strides in innovation, maintaining its 10th position on the European Innovation Scoreboard for three consecutive years. Public universities and institutions, such as the University of Cyprus and the Cyprus Institute, have been instrumental in securing prestigious European Research Council (ERC) grants. This success is underscored by 18 ERC awards and notable advanced grants achieved by leading researchers.

Government commitment to R&I is evident with a substantial increase in competitive funding for 2021-2027, rising to €177.25 million—a 34% increase from the previous period. This funding is allocated across various sectors: 23% for research, 27% for collaboration and knowledge transfer, 21% for innovation, 15% for internationalisation, and 14% for infrastructure and skills.

Operational improvements at the Research and Innovation Foundation have drastically reduced the average time to pay from 275 days in 2019 to 61 days in 2023, and the average time to contract from 21 months to seven months in the same period. These improvements are part of a broader effort to enhance customer experience and ensure high-impact funding programmes.

A significant focus of the new strategy is bridging the gap between industry and research. Initiatives like Partner Innovation Day facilitate collaboration and knowledge transfer among research organisations, startups, and technology innovators. This collaborative approach is expected to support over 550 researchers and drive further advancements in thematic areas such as ICT, green transition, energy, and health.

Furthermore, Cyprus is fostering international collaborations, with recent engagements involving Japan’s Ambassador and the President of Japan Science and Technology Agency. These partnerships are aimed at expanding Cyprus’ global R&I footprint.

Chief Scientist Skourides emphasised the importance of competitive funding in sustaining the nation’s R&I momentum. With €22.1 million allocated for various funding calls in 2024 and an additional €4.1 million for post-doc and PhD programmes in 2025, Cyprus is well on its way to realising its vision of becoming a leading regional R&I hub.

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Cyprus Tax Reform Ushers In Revised Deductions And Elevated Penalties

by THEFUTURE.TEAM

February 12, 2026

Effective January 1, Cyprus has implemented significant changes to its tax legislation. The reform adjusts rates and deductions and imposes substantially higher penalties, signaling a robust commitment to boosting compliance and deterring evasion.

Enhanced Deterrence Measures

The revised framework significantly raises administrative fines across a wide range of activities. One of the most notable changes concerns the obligation to accept credit card payments. The penalty for non-compliance has increased to €6,000, up from €4,000 previously and €2,000 when the requirement was first introduced in 2021. The rule applies across retail, services, hospitality, and leisure sectors and forms part of broader efforts to limit undeclared transactions and protect public revenue.

Adjustments To Reporting And Submission Deadlines

Penalties for failures related to tax filings and data submissions have also been tightened. The daily fine for a continuing violation has risen from €17 to €20, while the penalty for unjustifiably omitting income from a tax return now reaches €5,000, compared with €2,000 under the previous regime. Non-compliance with invoicing and receipt requirements is subject to the same ceiling, replacing the earlier fine of €450. These measures reinforce stricter expectations around accurate reporting and documentation.

Graduated Consequences For Late Payments And Serious Breaches

A tiered penalty system now applies to late submissions. Individuals face a fine of €150, small companies with a turnover below €1 million are charged €250, and larger businesses incur a fine of €500. If deadlines set by the tax commissioner are missed, the penalties escalate further to €300, €500, or €1,000, respectively. No fine is imposed, however, when an official extension is granted, and returns along with self-assessed taxes are filed within the approved timeframe, typically by July 31 or January 31.

Strict Penalties For Serious Tax Offenses

The reform also strengthens sanctions for more serious violations. Where business premises are sealed due to breaches such as failure to issue lawful receipts or outstanding tax debts, any attempt to tamper with the seal constitutes a criminal offense. Such actions may result in fines of up to €30,000 and imprisonment of up to two years. In cases of unpaid taxes, company executives, board members, or financial officers may also be held personally liable.

Penalties linked to the extraordinary defence contribution have been significantly increased. A first conviction may lead to a fine of up to €5,000, together with payment of up to double the amount owed. A second conviction carries far heavier consequences, including fines of up to €100,000, imprisonment of up to two years, and payment of up to four times the original contribution. Offences related to defence procurement or associated financial benefits are punishable by fines of up to €30,000, rising to €100,000 when a public official or person acting on behalf of the Republic is involved.