Following our communication with the Ministry of Finance regarding the Cyprus start-up, please find below our findings accordingly. The ministry is offering two types of start-ups: for foreign individuals and for innovative new or current Cyprus companies. The ministry has revised the scheme for the period March 2019 until March 2021 for both. For both, the ministry will look at the innovative nature of the start-up business. There are specialized evaluators in this field who are working closely with the ministry for this matter. For new Cyprus start-up companies, the ministry will consider the business with no financial background and determine the innovation aspect when the application is made and the submitted business plan. For Cyprus start-up companies that possess a financial history, the ministry will require the latest financial data and review where the R&D was spent and a clear breakdown of those costs will be required in order to differentiate the costs that do not fall under R&D. For existing Cyprus start-up companies with audited accounts, please note that they must prove that they have spent at least 10% of their capital in R&D before submitting the application, in the last available year. In order to ensure the said requirement is fulfilled the ministry will request for a breakdown of costs to examine whether such costs fall within the R&D. Please note the Ministry shall examine each cost separately in order to determine whether each cost falls under R&D. Please note that the expenditure relating to other activities of the company such as marketing, will not fall under R&D.
How should I allot my investment money to qualify for the Cyprus start-up visa?
I am preparing my application for the start-up program. I understand that I need 50,000 euros as my start-up capital. I want to know how I should arrange the use of the money. How does the Cyprus government define research and development activities in a start-up company? Do I have to devote the full amount of the capital to R&D activities? Can I allot a certain amount to marketing or other business activities?