Filenews 3 November 2025
The Budget of the Deputy Ministry of Research, Innovation and Digital Policy for 2026 was presented to the Parliamentary Committee on Finance and Budget, totalling €172 million, increased by 3.2% compared to 2025. The increase in development spending by 13.8% confirms the Government's commitment to accelerate the digital transition and strengthen the competitiveness of Cyprus as a technological and innovation hub in the Eastern Mediterranean.
More than 60% of expenditure is directed to digital transformation projects, with priority given to upgrading technological infrastructure, utilizing Artificial Intelligence (AI) and improving services to citizens.
🔹 Landmark projects implemented in 2026
2026 is a pivotal year for digital reform, as more than 100 new digital services are planned through upgraded information systems:
- Social Insurance, urban planning and building licensing "Hippodamus", Taxation (Tax For All) and the new Digipol system of the Police.
- Implementation of the new information systems of the Department of Road Transport and the Department of the Registrar of Companies, with the integration of electronic identity and the provision of digital services to citizens and businesses.
- Expansion of the "Digital Citizen" application, with new features such as buying tickets for matches, digital residence documents for foreigners and age verification to protect minors online.
At the same time, within 2026, the expansion of ultra-high-speed fiber optic networks throughout Cyprus will be completed, achieving universal population coverage with fast and reliable internet. As part of the Smart Cyprus project, four vertical "smart cities" solutions are put into operation, while the implementation of new solutions with a special costing model begins.
🔹 Strengthening Research and Innovation
In the field of Research and Innovation, the budget foresees:
- €26 million institutional funding to research institutions,
- €21 million to the Research and Innovation Foundation (RIF) for innovation programmes and support services;
- Activation of a mechanism for the evaluation of publicly funded organizations,
- Creation of an Innovation Portal in the standards of "Elevate Greece" for the networking and cooperation of ecosystem actors.
Artificial Intelligence is at the heart of the new strategy. The National AI Strategy will be completed by the end of 2025, while in 2026 the implementation of projects such as:
- the AI in Government programme for the integration of AI in public administration;
- the operation of the AI Factory Antenna "Pharos CY", which will provide access to computing power and know-how,
- the creation of a Center of Excellence for AI Operations.
🔹 National data policy and new perspectives
The Deputy Ministry is formulating a national data policy to enhance innovation and the competitiveness of the digital economy, while promoting the use of space technologies, following the accession of Cyprus as an Associate Member of the European Space Agency (ESA).
The Government sets the goal for Cyprus to become a fully digitally integrated state by 2030, with 2026 being the year of implementation of critical projects and infrastructures that turn investments into tangible benefits for citizens, businesses and the economy.
