Cyprus Talent Repatriation Tax Incentives

Cyprus Talent Repatriation Action Plan

Cyprus Announces New Tax Incentives to Encourage Expats to Return Home

The President of the Republic of Cyprus, Mr Nikos Christodoulides, recently unveiled a number of new tax incentives designed to encourage skilled Cypriots who are living and working abroad to return to Cyprus. 

The goal is to reverse Cyprus’ “brain drain” and turn it into “brain gain” by attracting the repatriation of scientific and professional  Cypriots who are working abroad.

The new measures include:

• A 25% tax exemption on income from first employment;

• An increase in the maximum annual tax relief from €8,550, capped at €25,000 for Cypriots who have spent at least seven years working abroad after completing their studies.

The bill also introduces more flexible eligibility criteria to support the return of professionals who are capable of making immediate contributions to innovation, productivity and generally to the overall competitiveness of Cyprus’ economy.

Note: In order to benefit from these new incentives, there is a 7 year residency abroad requirement.

Talent Repatriation Action Plan – Meeting in London – 21/5/25

In May 2025, Mr Christodoulides met with Cypriot and foreign entrepreneurs who are living and working in the UK to officially announce the “Talent Repatriation Action Plan”.  He presented these attractive tax incentives to entice them to return home and boost Cyprus’ growing economy.

Apart from the “brain gain” incentive, other incentives, such as assistance with housing, free healthcare and education were also presented to further entice talented people with valuable experience, expertise and knowledge back to Cyprus.

The President also met Cypriots who had worked abroad and had decided to return to Cyprus and asked them to share their experiences of coming back.

A talent portal called “Minds in Cyprus – The Brain Gain Initiative” was officially launched during the London meeting.  It provides useful information on the new incentives and submission of applications, job postings, event information, plus repatriation facilitation information for individuals and families.

Visit:  https://www.mindsincyprus.com/#info

You can also watch and read testimonial videos with actual experiences of working and living in the beautiful island of Cyprus.  You can see how Cyprus offers a unique blend of business opportunities combined with quality lifestyle. You can read about Cyprus’ strategic benefits, such as its favorable regulatory environment and competitive tax system, which have positioned it as a leading hub for financial services and investment.

Housing and Medical

Housing remains a steady priority on the cabinet’s agenda, with seven housing schemes that have been introduced over the past two years, drawing significant interest, especially from young people.

ICT Sector

In addition to scientists and entrepreneurs, the government aims to attract technology specialists to support the rapid growth of Cyprus’ booming ICT sector, which now contributes more to the island’s GDP than its tourism.

Conclusion

Cyprus is enjoying stable economic conditions and positive macroeconomic indicators that reinforce confidence in the country’s development.  The Cyprus Government is establishing appealing and competitive opportunities to encourage the return and reintegration of skilled individuals who previously sought careers abroad.

President Nikos Christodoulides expressed confidence that strengthening tax incentives and the expatriate return initiative would yield positive results, based on the positive interest already shown.  He stressed that the measures carry no immediate fiscal burden, as they apply solely to new taxpayers, while contributing to a broader tax base over the medium term and promoting long-term fiscal sustainability.

The framework will be reviewed every five years to ensure it remains responsive to socioeconomic changes, thereby increasing its overall effectiveness.