HOUSE OF REPRESENTATIVES APPROVED THE AMENDMENT OF THE LAW FOR 5% VAT ON FIRST HOMES

The Commissioner for State Aid Control Stella Michaelides on Wednesday published her decision on a scheme for Small and Medium Size Enterprises (SMEs), titled “Circular Economy Project in Small and Medium Enterprises (SMEs)”, according to which the total amount for aid granted has been set at €400,000.

At the same time, the plan sets €30,000 as the minimum investment required for an SME to be eligible for a grant. The applicable period for the scheme covers the years 2024 to 2026. Significantly, the beneficiaries of this scheme are identified as both new and existing SMEs. These enterprises must be established, or intend to be established, within Cyprus, with the exclusion of regions where the Republic of Cyprus has no control, due to the Turkish invasion.

Furthermore, it is crucial to note that this scheme is part of the national Recovery and Resilience Plan (RRP) of Cyprus for the 2022 – 2026 period. This plan will receive financial backing from the Recovery and Resilience Mechanism of the European Union. The responsibility for the enactment and supervision of this scheme falls to the Industry and Technology Service of the Ministry of Energy, Commerce, and Industry, with a total budget earmarked at €14.4 million.

Lastly, the scheme specifies that the maximum aid intensity is capped at 50 per cent.

Source: Cyprus Mail