The Scheme aims to revitalize and strengthen economic activity within the walled city by supporting investments by natural and legal persons for the establishment and operation of businesses.
Objectives of the Scheme
The Scheme seeks to:
- Strengthen entrepreneurship
- Create sustainable jobs
- Attract new activities to the walled city
- Increase visitor numbers and social vitality in the area.
Beneficiaries
Beneficiaries are natural or legal persons, as well as social enterprises, who intend to establish or expand activities within the walls of Nicosia.
Beneficiaries may be:
- Owners,
- Tenants, or
- Leaseholders of Turkish Cypriot property,
provided that the premises are located within the defined boundaries of the Plan.
Types of Businesses
Activities aimed at young people, students, residents, and visitors to the area are encouraged, such as:
- Small retail businesses,
- Creative profession workshops,
- Cultural and artistic spaces,
- Innovation and social entrepreneurship services.
It should be noted that the further concentration of catering and leisure businesses (e.g., cafes, restaurants, bars) is not encouraged.
Grant
- Aid intensity: 60% of eligible costs
- Maximum grant amount: €80,000
- Minimum investment amount: €20,000
The grant is paid in two installments, with the possibility of an advance payment of up to 20% after the contract is signed.
Eligible Expenses
Expenses are allocated as follows:
- 70% for construction work and renovations,
- 20% for equipment,
- 10% for other related expenses (e.g., studies, permits, consulting services).
Expenses must be related exclusively to the creation or upgrading of the business and must be documented with legal receipts and payments via bank account.
Ineligible Expenses
Expenses that are not directly related to the investment or are not sufficiently documented are not considered eligible under the Plan.
For example, the following are not eligible:
- Salaries or remuneration of the beneficiary’s staff,
- General operating expenses (rent, bills, telecommunications, fuel, etc.),
- Purchase of land or buildings,
- VAT and other taxes or fees,
- Expenses incurred prior to the date of approval,
- Used equipment or machinery,
- Expenses without legal documentation or without bank payment,
- Expenses related to ineligible uses, such as investments for activities outside the scope of the Plan.
The final eligibility of each expense is assessed by the Ministry of the Interior in accordance with the rules of the call for proposals.
Beneficiary Obligations
The beneficiary is required to:
- Complete the project within 18 months of signing the agreement,
- Commence work within 3 months,
- Maintain the operation of the business for at least 5 years.
Submission Procedure
Applications are evaluated on a first-come, first-served basis until the available budget is exhausted.
Total Budget
The total budget for the Plan is €2,000,000, co-financed by the Republic of Cyprus and the European Union.