digital policy — The budget dedicated to Cyprus’s digital policy is set to rise to €172.8 million in 2026, as announced by Deputy Minister Nicodemos Damianou during a House finance committee meeting. This increase of €5.4 million reflects a 3.2 per cent growth compared to the previous year, with development spending seeing a significant boost of 13.8 per cent.
- Looking ahead, a new call centre is planned to start operating by the end of 2025, aimed at guiding citizens in utilising the ministry’s digital services and addressing complex inquiries.
The 2026 budget allocation includes €70,062,349 for regular expenses and €102,802,287 earmarked for development initiatives. Damianou emphasised that the additional funding is aimed at advancing the government’s ambition for complete digital transformation, fostering innovation, and establishing modern digital services for citizens.
Digital policy: Investment in Innovation, People, and Technology
According to Damianou, the increased budget should be viewed as an investment in people and technology rather than merely an expansion of financial resources. The ministry’s overarching aim is to create a fully digital public administration, enhance advanced research capabilities, and promote strategic investments that will underpin long-term economic growth in Cyprus.
Three Pillars of Digital Strategy
The ministry’s strategic focus is on three interconnected priorities: digital transformation, a sustainable innovation-driven economy, and cyber security. The digital transformation effort seeks to align Cyprus with the EU’s digital decade 2030 objectives by improving digital infrastructure and skills. In parallel, connecting research with industry is essential for fostering innovation, while robust cyber security measures are necessary to protect the nation’s critical digital infrastructure.
Progress and Future Initiatives for 2025
In reviewing the progress made thus far, Damianou highlighted 36 digital transformation initiatives implemented under the national recovery and resilience plan, covering various areas such as e-governance, broadband infrastructure, digital skills, and support for small and medium-sized enterprises.
Anticipating further advancements, the ministry expects to launch over 70 new e-government services by the end of 2025. These services, which include systems for processing social insurance applications and scheduling online appointments at citizen service centres, will be accessible via the enhanced gov.cy portal. This portal currently sees over 500,000 visits each month, with total visits exceeding one million when incorporating linked government sites.
Enhancing User Experience with Technology
An important upgrade to the gov.cy portal was completed in December 2024, when an AI-powered “digital assistant” was introduced. This tool has already responded to over 190,000 citizen queries covering topics from taxation to transport and consular services. The digital assistant continues to evolve, simplifying public access to essential information.
The “digital citizen” app has also gained traction, with over 120,000 registered users who can store official documents electronically. The app’s interoperability with Greece’s “gov.gr wallet” allows for mutual recognition of digital IDs and driving licences between the two nations.
Support for Digital Identity and Research
In 2025, the ministry initiated a grant scheme offering 100,000 electronic IDs, of which 30,000 were provided free of charge. The CYlogin authentication system has successfully verified 570,000 profiles, comprising 409,000 individuals and 156,000 legal entities.
Looking ahead, a new call centre is planned to start operating by the end of 2025, aimed at guiding citizens in utilising the ministry’s digital services and addressing complex inquiries.
In the realm of research and innovation, the ministry has allocated €27 million in institutional funding for research bodies and an additional €21 million via the research and innovation foundation to support competitive programmes such as “STEP – Production Lines” and “AI in Government.”
Launching the National AI Strategy
Preparations are underway for the launch of the national artificial intelligence strategy and action plan in 2026. This initiative aims to coordinate AI projects across various ministries and incorporate AI tools into key public systems, including “Ippodamos” and “iJustice,” which are designed to facilitate legislative work and manage judicial cases.
Moreover, Cyprus has joined the European “AI Factories” network through the “Pharos-CY” initiative, securing €3 million in co-funding over a three-year period. An AI expert committee has been formed, and the public sector has already deployed its first generative AI tool, the “digital assistant.”
Damianou concluded that these efforts will not only accelerate Cyprus’s digital transition but also enhance productivity and create new avenues for growth and employment. This is particularly significant as the island prepares for its EU Council Presidency in 2026.
