Investment in Innovative Companies

Since 2015, Cyprus Republic has developed several actions in order to promote innovation. Amongst those actions are (1) The Tax Incentive for investment in Cyprus-based innovative companies (2) The Cyprus Citizenship by investment scheme

1. Tax Incentives

Any amount invested in purchasing shares Cyprus-based innovative companies is deducted from the taxable income. In other words, the amount of money invested by the founder of the company or an external investor is deducted from his/her total taxable income. Example: An Investor has an annual taxable income of 140,000 €. If he/she invests 60,000 € to buy shares of an innovative company he/she will pay tax on 140k-60k = 80,000 €. More examples are available on the following publication from the Ministry of Finance: Cyprus Tax Incentives for Investing in Innovative Companies

In order to be eligible for the tax deduction, the company on which the investment is made must be approved by the Cyprus Ministry of Finance. A list of the already approved companies is published at the website of the Ministry of Finance: List of Cyprus-based Innovative Companies (SMEs)

S-innovations Ltd is a registered Innovative SME as per Article 9 of Cyprus Income Tax Law 118(I)/2002. The company received the relevant certification from the Ministry of Finance in 23/10/2018.

Cyprus Citizenship Program
Investment in Innovative Companies

The current Cyprus Citizenship by investment scheme requires the applicant to support the counties innovation ecosystem by donating or investing a minimum of 75,000 Euro in Innovation. There are two options to fulfill this requirement:

(1) A donation of 75,000 € to the Research and Innovation Foundation or
(2) An investment of 75,000 € to one of the approved Innovative Companies

Investment Opportunities

S-Innovation Ltd welcomes potential investors to invest in the company in order to accelerate our current projects. The investment is through the acquisition of company shares. As a shareholder, the investor can participate in the annual meeting of the company and receive dividends.

Companies financials are available upon request. Any money received from investors will be used to finance the below two projects and accelerate their deployment to the market.

Steps for Investing in S-Innovations Ltd

Step 1: Contact Us to receive the Financial Result of S-Innovations Ltd (Contact ).

Step 2: We discuss your investment priorities and how those priorities align with the objectives of S-Innovations Ltd. We present our projects in detail and discuss your ideas.

Step 3: Any ideas/requests from potential investors regarding the planning of the project, the project personnel, the target market etc can be raised and agreed in advance. The investor can propose suitable candidates to be employed by the company to help accelerate the process of bringing a product to the market.

Step 4. Sign the Investment Agreement. Please sent the agreement to

Step 5. S-Innovations Ltd will countersign and return the agreement.

Step 6. Proceed with payment of the agreed investment amount to the bank account of S-Innovations Ltd stated in the Investment Agreement. Please send the copy of the related fund’s transfer to

Step 7. Once the transfer is completed, S-Innovations Ltd will file the required paperwork to the Registrar of companies. A certificate showing that the investor is a shareholder and the number of shares in the procession will be issued by the Registrar of Companies. The process takes approximately 30 days.

Step 8. Once the process is complete, S-Innovations Ltd will send a package with all relevant paperwork for future reference. The investor can keep/use the paperwork as a proof of fulfilling the Financial Criteria for the Cyprus Investment Programme (Section 111A of the Civil Registry Law) or for Tax Exceptions as per Article 9 of Cyprus Income Tax Law 118(I)/2002. The package will include:

  1. Innovative Enterprise Certificate
  2. Investment Agreement
  3. The proof of payment (i.e. issues by S-Innovations as soon as the fund transfer is completed)
  4. Copy of the wire transfer to S-Innovations Account (i.e. the copy of the wire transfer given by the bank)
  5. Certificate of shareholders by the Registrar of Companies (that shows that the investor is one of the shareholders and his percentage).
  6. Specific investment plan (Details of the project for which the funds will be used).
  7. Copies of the employment contracts of the employees at S-Innovations.
  8. Confirmation regarding the insurable income of the employees at S-Innovations.  

For more information please feel free to contact us

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