The Ministry of Finance is promoting significant reforms aimed at supporting entrepreneurship and addressing funding gaps in the market, with particular emphasis on small and medium-sized enterprises, start-ups and the self-employed.
The implementation of these plans is expected to be a key area of action in 2027, with the main goal of strengthening business activity and the competitiveness of the Cypriot economy.
At the centre of the Ministry’s plans is the operation of the Cyprus Business Development Organisation, which aims to become an important tool for facilitating businesses’ access to financing instruments.
According to the publication “Economic Developments 2026 and Prospects 2027-2029”, the legislation for the establishment and operation of the Organisation was prepared during 2025, while the relevant law was passed by the House of Representatives on 14 July 2026. This was followed, on 6 August 2026, by the appointment of its Board of Directors by the Council of Ministers.
At present, with the support of the Ministry of Finance, the necessary procedures are being advanced for staffing the Organisation and launching its operations. Its mission will include, among other things, intervening in cases where funding gaps are identified in the market.
€30m in state funds for business financing
At the same time, the investment activity of the Cyprus Equity Fund is under way. The Fund was created to address the gap observed in the availability of equity-based financing products for Cypriot small and medium-sized enterprises.
The state’s contribution to the Fund amounts to €30 million, while additional capital has been secured from the private sector.
The Fund began its investment activity in January 2025 and, according to available data, has already signed partnership agreements with 12 companies.
Changes to the Companies Law in 2027
A significant place in the Ministry of Finance’s priorities is also occupied by the modernisation of the business framework, including through the revision of the Companies Law.
The key objective is to create a legislative framework that better meets the needs of the business community, by simplifying procedures and addressing interpretive issues arising from the existing legislation.
According to the Ministry’s planning, the relevant bill is expected to be put out for public consultation during October, to submit it to the House of Representatives in 2027.
Strengthening the screening of foreign investments
At the same time, the Ministry of Finance is promoting the further strengthening of the framework for screening Direct Foreign Investments from third countries, with the aim of protecting the security and public order of the Republic of Cyprus.
The relevant legislative framework was published in the Official Gazette of the Republic on 14 November 2025 and entered into force on 2 April 2026, providing for the creation of a mechanism to screen investments that may affect security or public order.
For 2027, the Ministry plans to advance legislative amendments so that the Cypriot framework is aligned with the new EU Regulation on the screening of Direct Foreign Investments.
At the same time, the aim is to further strengthen the competent Unit and improve screening procedures, drawing on the experience gained from the initial implementation of the mechanism.
The Ministry’s objective is the more effective application of the framework, while enhancing investor confidence and the stability of the business environment.
