Recently, the Cypriot government has been paying many benefits and subsidies, most co-financed by the European Union.
Below we will help you understand all the options and find what is right for you.
(EEE) MINIMUM GUARANTEED INCOME
How to receive a minimum guaranteed income benefit in Cyprus?
Since 2014, a minimum guaranteed income benefit has been paid in Cyprus. What is it, who can claim it, and how do you apply for it?
Cypriot residents in financial difficulty can apply to the Ministry of Labour, Social Security, and Social Insurance to receive the minimum living allowance. In practice, the minimum guaranteed income (and other benefits) is handled by the Social Benefits Administration Service within the Ministry of Labour.
Who is eligible to receive minimum guaranteed income?
Citizens of the Republic of Cyprus, EU nationals, and third-country nationals may apply for the minimum guaranteed income benefit if they have obtained a long-term residence permit, refugee status, or international protection status. The appropriate application form can be downloaded from http://www. mlsi.gov.cy.
The completed application form must be submitted to the Citizens’ Service Centre.
Applicants must meet one of the following criteria:
- be over the age of 28,
- be within a registered marriage (for all ages),
- be a single parent (for any age),
- be orphaned (for any age),
- be disabled (for any age),
- be an adult who has been in the care of social services before reaching 18.
Minimum guaranteed income – Applicant’s property limits
The main limits concern the applicant’s property. In particular, an applicant for a minimum guaranteed income must satisfy the following conditions:
- The applicant and their family must not own a property worth more than €100,000 (based on the cadastral valuation). The real estate in which the applicant resides must not exceed 300 square meters. Real estate that is mortgaged (in whole or significant part) is not considered.
- The bank deposits of the applicant and their family members must not exceed the amount of €5,000. Amounts of up to €20,000 are not considered if they secure credit, are in the name of minor children, are intended to cover higher education costs, and are held in a joint account with a retired parent.
- The total value of shares, securities, bonds, etc., held by the applicant and their family members does not exceed €5,000.
- The total income of all family members must be below the minimum guaranteed income (more on this below).
The EEU amount is the difference between the total amount calculated for a particular applicant and their income.
How is the minimum guaranteed income calculated?
Several factors add up when calculating minimum guaranteed income:
- The monthly amount corresponds to the needs of the applicant. The law establishes the following amounts: €480 for the applicant, €240 for the spouse and each family member over 14 years old, and €144 for each family member under 14 years old.
- Rent subsidy (considered when there is a need, e.g., if the applicant lives in a rented property or property for which the loan is being paid). The rental subsidy is calculated based on the family’s composition, the size of the property, and its location.
In addition, minimum guaranteed income recipients are covered for municipal and other contributions and may be allocated an amount for urgent expenses.
Example: A family of four members (parents, a child over 14, and a child under 14) who lives in their flat has applied for the minimum guaranteed income. The family’s income is €800 per month.
First, their minimum guaranteed income is calculated: as €480 + €240 + €240 + €144 = €1104.
Then the real income is subtracted from this amount: €1104 – €800 = €304.
The government will pay them a minimum guaranteed income of €304.
SUBSIDIES FOR THE PURCHASE OF HOUSING OUTSIDE THE CITY
The budget for housing programs for families and individuals who want to move to mountainous or remote villages has been tripled. The program participation criteria have also been expanded to include more villages.
The government has adopted a National Strategy for Supporting Mountain Villages, under which nearly 200 projects have been completed or implemented over the past three years, making it an effective tool to support young people who choose to move into separate housing in rural areas.
The government has set aside more than half a billion euros for this purpose. The money would be used, among other things, to support mountain villages under a seven-year program until 2030.
The funding available for 2022 will be 15 million euros. In 2021 it was 5 million euros.
Changes were made to the population criteria and the distance from the center of the nearest town. As a result, villages with a population of at most 500 people located within 25 km of the center of the nearest town will be eligible for the scheme in the new phase. This will help cover 19 villages, raising the total number to 277.
In addition, mountain villages and areas with fewer than 50 inhabitants will have an advantage irrespective of their altitude. The income eligibility criteria for the subsidy has increased by €5-€10 thousand (i.e., the maximum annual income threshold that qualifies for the subsidy has been raised), and the amount of benefits has been increased by €5-€15 thousand.
Applications for grants will be accepted until 31 December 2022.
ADDITIONAL BENEFITS FOR RESIDENTS OF RURAL AREAS
The government is paying a benefit to working people commuting to work from rural areas, between €300 and €600 annually (not tied to their income), depending on the distance to the nearest urban center.
In addition, the amount budgeted for benefits for people living in mountainous and remote areas was increased. In 2021 it was €6.5 million. Now, it is €7.5 million. Nine additional localities with a population of 1,880 are now eligible for this benefit (Agios Georgios Lemesou, Trimiklini, Pottokopos, Korfi, Ora, Kritou Terra, Lysos, Kapedes, and Kelokedara).
Plus, a further 37 villages became eligible for increased farming allowances. Thus, the state assistance scheme for residents now covers 119 settlements with a population of 25,500.
GOVERNMENT SUBSIDY FOR PEOPLE WITH AVERAGE INCOME TO PURCHASE A HOUSE
The Cyprus Land Development Corporation (CLDC) is implementing an affordable housing program for average-income people.
According to the legislation, the CLDC acquires plots of land, subdivides it, and makes it available to developers to construct residential houses without additional procedures. These facilities are intended for individuals and households who cannot purchase a house or apartment at market value.
To participate in this program, you need to meet several criteria. The main one is the level of income. By decision of the Cabinet of Ministers, the annual aggregate income of the purchaser (household or individual) must not exceed the following amounts:
- for singles – €25,000,
- for families without children – €45,000,
- for families of three persons – €50,000,
- for a family of four – €55,000,
- for large families and families of five persons – €65,000.
In addition, CLDC takes into account credit history, movable and immovable property, housing conditions, and family composition. The buyer pays 20% of the cost of housing at the beginning of construction and the remaining 80% after the building is commissioned.
The program applies to Cypriot citizens. EU nationals can also participate if they have lived on the island for at least five years.
GOVERNMENT SUBSIDY IN CYPRUS TO SUPPORT ENTREPRENEURIAL ACTIVITY
The Ministry of Energy, Trade, and Industry are implementing a plan to support youth and women’s entrepreneurship. Initially, these were two different plans, but as implementation progressed, it became clear that women were more eager than young people to start their businesses. The plans were merged, and funds were reallocated. The plan will run until 2027, and the total budget will be €450 million.
Although financial assistance was initially intended only for young people aged 18-29 and women aged 30-55, men aged 30-50 are also eligible. They have been included in the program to maximize its impact and enable the greatest number of people affected by the pandemic to start their businesses.
It is the most popular subsidy in Cyprus, with 608 start-ups already receiving it.
Details are at https://meci.gov.cy/en/funding-programmes, and there is a link to the portal where you can apply electronically.
SUBSIDIES IN CYPRUS FOR THE PURCHASE OF HOUSEHOLD APPLIANCES
Persons receiving benefits from the government can also claim subsidies for the purchase of appliances with energy efficiency class D and above (for refrigerators), C and above (for washing machines), and A++ (for air conditioners).
Who is eligible for a household appliances subsidy?
The beneficiaries of this plan will be vulnerable populations as defined in CDP Decree 289/2015, namely:
- Minimum guaranteed income recipients
- Recipients of state benefits from the Social Security Service;
- sufferers of the Severe Mobility Disability Allowance;
- Pension recipients with low pensions;
- Paraplegia Beneficiaries or Tetraplegics Beneficiaries;
- Payers of the blind allowance;
- Multi-member families and families of five people.
How to apply for a household appliances subsidy?
- Applications shall be submitted electronically at https://www.resecfund.org.cy.
- After pre-approval of the application and purchase of appliances, a delivery note must be obtained in the applicant’s name, and a description of the purchased goods must be provided.
- These documents must be attached to the application.
- The application will then be evaluated, and the money will be credited to the applicant’s bank account.
Old appliances you are replacing with new ones must be returned to the supplier for recycling, and a certificate must be issued accordingly.
What household appliances are eligible for the subsidy?
The subsidy’s text highlights three categories of goods: air conditioners, washing machines, and refrigerators.
Air conditioners
- No more than three per applicant and/or dwelling.
- The energy efficiency class of the new unit must be A++ or higher for cooling and A+ or higher for heating.
- For air conditioners up to 3.99 kV, the subsidy will be €300.
- For air conditioners of 4kW and up to 12kW, the subsidy will be €500.
Washing machines
- No more than one per applicant and/or dwelling.
- The energy efficiency class of the new device must be C or higher.
- For washing machines with a capacity of up to 8.9 kg, the subsidy will be €300.
- For washing machines with a capacity of more than 9 kg, the subsidy will be €400.
Refrigerators or freezers
- No more than one item per applicant and/or dwelling.
- Energy efficiency class D or higher.
- For refrigerators/freezers up to 449 liters, the subsidy is €400.
- For refrigerators/freezers with a total volume of more than 450 liters, the subsidy will be €600.
For more information, visit www.meci.gov.cy.
GOVERNMENT SUBSIDIES FOR THE INSTALLATION OF SOLAR PANELS AND THERMAL INSULATION IN CYPRUS
If you’ve decided to change the insulation on your roof, install solar panels, or do both, this subsidy plan will come in handy.
The program is divided into three categories:
- Reimbursement of roof thermal insulation works in the amount of 30% (but no more than €1,500);
- Compensation for roof thermal insulation and installation of solar panels with net metering of 35% up to a maximum of €3,000;
- Compensation for the installation of solar panels with net metering, the compensation cannot exceed €1,000. For households with disabled residents, the compensation cannot exceed €3,750.
For more information, visit https://resecfund.org. su
HOW TO GET A 20% DISCOUNT ON YOUR ELECTRICITY BILL
Certain Cypriot residents are entitled to a 20% discount on electricity bills. It can be received by citizens of the Republic of Cyprus, citizens of one of the EU countries, or third-country nationals with long-term residence permits.
The following categories are eligible for electricity discount benefits:
- Multi-membered families or families of five persons receive child benefits from the Ministry of Labour if the family income does not exceed €51,258 (for families with three children). For each additional child, the income criterion is increased by €5,126 (i.e., for a family with four children – €56,384, etc.);
- Recipients of government benefits from the Ministry of Labour, Social Security, and Social Insurance’s social security service;
- Recipients of the minimum guaranteed income (EEE);
- Recipients of the State Severe Disability Allowance;
- Recipients of state benefits for people with tetraplegia;
- Recipients of the state benefit for people with paraplegia;
- Individuals suffering from kidney disease and undergoing hemodialysis treatment if they receive a state mobility allowance;
- Persons with multiple sclerosis if registered with the Cyprus Multiple Sclerosis Patients Association.
It is important to note that the discount is retroactive, meaning you can request a refund when you officially fall into the category of people entitled to the benefit.
To receive the discount, you must complete a questionnaire and take it to one of the EAC customer service centers.
Electricity Authority service centers in Cyprus:
Nicosia
15, Foti Pitta Str.
P.O.Box 21413,1508 Tel.: 22 202243 / 22 202343
Strovolos
11, Amfipoleos Street 2025 P.O.Box 24506,1399 Tel: 22 202243 / 22 202343
Kakopetria
5B, 2800 Makariou Ave. Tel: 22 922417
Limassol
1) 55, Agiou Andreou Str.
P.O.Box 50121, 3601 Tel.: 25 205007 / 25 205254
2) 4, Sotiri Tofiini (street parallel to Aghiu Athanasiou Avenue) 4102 Tel.: 25 205007 / 25 205254
Paphos
87, Eleutheriou Venizelou Avenue
P.O.Box 60057
8100
Tel: 26 206192 / 26 206248
Polis
6, Makarios Avenue 8820
Tel: 26 323214/26 323215
For more information on the operation of the EAC customer service centers, please visit https://www.eac.com.cy/EN/ContactUs/Pages/default.aspx
ELECTRIC VEHICLE SUBSIDY
The Ministry of Transport and the EU plan to pay €10,000 as a subsidy for citizens wishing to change their regular car to an electric car. The subsidy can be obtained for purchasing a car with a value not exceeding €65,000. The plan will be implemented until 2030, with a budget of €30 million.
More information is available at https://rtd.mcw.gov.cy.
STUDENTS SUBSIDY
The subsidy covers rent, books, computers, and food. It is paid to students from families whose annual income does not exceed €59,000.
For more information, visit http://www.moec.gov.cy
SUBSIDIES FOR REPRODUCTIVE TECHNOLOGIES
The government can compensate families for In vitro fertilization (IVF), surrogate pregnancy, and other assisted reproductive technologies. The government is willing to subsidize no more than four childbirth attempts for families without children and families with children no more than two.
More information can be found on the website of the Ministry of Health at https://www.moh.gov.cy
CHILDREN’S SUBSIDY
Recipients of government benefits or minimum guaranteed income (EEE) are entitled to a so-called ‘baby’s dowry’ – a set of items necessary for a newborn baby: underwear, nappies, hygiene items, etc. for €1,649.
For more information, visit www.mlsi.gov.cy.
GOVERNMENT SUBSIDIES TO SUPPORT PARENTS
The authorities of the Republic of Cyprus declare that supporting parenthood and increasing the birth rate is a national priority.
Below is a small list of what is planned or already done at the national level.
- Paid maternity leave was increased from four to five months for the second child and up to six months for the third and each subsequent child.
- Paternity leave has been introduced.
- For twins and triplets, four and six weeks are added to maternity leave.
- Subsidizes the costs of 60 daycare centers nationwide to keep costs low.
- The Baby Kit program continues, providing low-income families with consumer goods for newborn babies for €1,649.
- Maternity benefits that were canceled in 2012 were restored.
- Enhancement of annual income criteria for child allowance (depending on the number of children).
- Paid parental leave will be introduced for each child under eight years of age, to which both parents will be entitled, in addition to the standard parental leave for mother and father.
- Municipalities and village councils will receive funds to build or upgrade 30 new kindergartens and multi-functional centers for children. This will give women the opportunity to go back to work.
- There will be subsidies for parents (based on family income) to pay for “quality care facilities” (we are talking about kindergartens). The measure will not affect all kindergartens but only those that are included by the state in a special list.
- A national strategy and action plan for developing early childhood education and care will be developed.
There is a section at www.cyprus.gov.cy called Family Benefits (Mothers, Child, Student Grants, etc.). There you can see a list of benefits and the requirements for each benefit.
GOVERNMENT HELP TO CHILDREN FROM LOW-INCOME FAMILIES
How does the Ministry of Education help children from low-income families?
Day schools
In some primary schools in Cyprus, children whose parents work can stay after school for an extended day, do their homework, and spend time supervised by teachers. Pupils are provided with meals, which cost parents €470 a year. For children from low-income families, there is a discount of up to €321 per year and, in some cases, even free meals.
Free lunches
The Ministry of Education runs a program to provide free meals to pupils from low-income families. A special committee in the school selects students whose families have financial difficulties based on criteria drawn up by the Ministry of Education. The state budget, the European Aid Fund, private welfare organizations, and philanthropists cover the costs.
More information about the program can be found at: http://www.moec.gov.cy/politiki_amyna
Procedure for compiling a list of students from low-income families
An advisory committee of the school draws up a list of pupils from needy families. It includes representatives of parents’ associations, the teaching corporation, pupils, local authorities, and the church.
Members of the advisory committee should take into account the following facts when compiling the list:
- parents/guardians of which pupils receive EEU benefits or are not formally employed;
- which of the students do not have parents;
Some students grow up in single-parent or large families with economic difficulties.
The lists are reviewed each month.
Computer subsidies
The Ministry of Education pays a subsidy of €400 to upper secondary schools and preparatory classes of evening schools to purchase a laptop.
Free supplementary education
Government institutes of further education began their work in 1960, and at first, they offered foreign language courses only. Today their program has expanded considerably and includes many subjects. The courses are intended not only for schoolchildren but also for adults who wish to gain additional knowledge. The courses start in November, and the registration and schedule for the upcoming year are published in October. All courses cost €55 annually (free of charge for low-income and top students). The state supplementary education institutes are intended to replace private supplementary education courses for children from low-income families.
Charity events
Charity fundraisers are often held in public schools on holidays and memorial dates. While most such fundraisers are for the benefit of the school itself, sometimes funds are also raised for underprivileged students. Such fundraisers include juice sales on school grounds, with all proceeds going to help students; the collection of olives from the schoolyard so that oil extracted from the olives can go to low-income families; charity fairs on the eve of Easter, etc. Political parties and civil society organizations also often organize food, clothing, shoes, stationery, etc.
Additional benefits
As of 2017, pupils from low-income families are exempt from paying the state fee for participation in the Government Cyprus-wide school examinations, the certificate fee, and school trips.
HOW THE CYPRIOT GOVERNMENT REDUCES UNEMPLOYMENT AND HELPS FIND A JOB
The Ministry of Labour gives subsidies to employers for employing unemployed people. The European Social Fund and the national budget partly finance the program.
According to the plan, the subsidy will cover the employer’s expenses for the salaries of the employees he has hired from among the registered unemployed list. The payment is calculated based on €34 per working day. The subsidy will be paid during the first ten months of employment of a new employee, provided that the employer undertakes to hire the registered unemployed for at least one year (i.e., the employer will have to pay the salary for at least two months without financial support from the state).
The total budget of the program is €4 million. Employers interested in the subsidy can find the application form on the Ministry’s website. Applications are accepted until the potential amount of subsidies reaches the size of the allocated budget.
The plan is included in the government’s Active Employment Promotion Policy Strategy to bring the unemployed into the labor market. In addition, the unemployed who participate in the program will also have the opportunity to take professional development courses.
