Latest Tax Incentive for Repatriation of Cypriot Professionals

Latest Tax Incentive for Repatriation of Cypriot Professionals

As part of the Cyprus government’s “Minds in Cyprus” initiative, a new Cyprus tax incentive for professionals returning to Cyprus came into effect on 6 March 2026. The measure is designed to encourage skilled Cypriot professionals currently living and working abroad to relocate to Cyprus and contribute to the country’s growing economy.

Introduced under Article 8(21B) of the Cyprus Income Tax Law, the incentive applies retrospectively from 1 January 2025 and is available to individuals relocating to Cyprus up to the end of 2030. It applies to both employment income and self-employment income, alongside the existing 20% and 50% relocation tax exemptions.

What is the new Cyprus tax exemption?

Eligible individuals can benefit from a 25% tax exemption in Cyprus on their annual employment income or business profits that are capped at €25,000 per annum.

• It applies for 7 consecutive years;
• It starts from the year of commencing employment or business activity in Cyprus;
• It is available to both employees and self-employed professionals relocating to Cyprus.

This further enhances Cyprus as an attractive destination for internationally mobile professionals.

Who qualifies for the Cyprus relocation tax incentive?

To qualify for this Cyprus relocation tax benefit, individuals must meet the below conditions.  They must:

• Not be Cyprus tax residents for at least 7 consecutive years prior to their relocation;
• Have previously been Cyprus tax residents at some point before that period;
• Become Cyprus tax residents (with flexibility in the first year);
• Earn a minimum annual income of €30,000 from employment or business activities.

The exemption continues to apply for the full 7-year period, provided the income threshold is maintained.

Employment abroad requirement

Applicants must also demonstrate prior employment outside Cyprus with a foreign employer:

• 36 months within the last 84 months, if holding a university degree recognised by KYSATS (Cyprus Council for the Recognition of Higher Education Qualifications); or
• 84 months, if no recognised university degree is held.

Why relocate to Cyprus?

Cyprus continues to position itself as a leading destination for international professionals, entrepreneurs and returning Cypriots, offering:

• Competitive personal tax incentives in Cyprus;
• A strategic location within the EU;
• A well-established professional services sector;
• High quality of life and favourable residency options.

Follow this link to read more about the Cyprus Talent Repatriation Tax Incentives Action Plan.

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

How FBS Cyprus can support you

At FBS Cyprus, we provide tailored, end-to-end support to individuals considering relocation to Cyprus or returning under the new tax incentive framework.

Our services include:

• Eligibility assessment for the new and existing Cyprus tax incentives;
• Personal tax planning and structuring, ensuring optimal use of available exemptions;
• Relocation advisory, including tax residency planning and practical guidance;
• Ongoing compliance support, covering tax filings and reporting obligations.

With extensive experience in Cyprus tax and corporate services, our team ensures a smooth and efficient transition, allowing you to focus on your professional or business objectives.

Get in touch

If you are considering relocating to Cyprus or would like to assess whether you qualify for the new tax incentive, our team would be pleased to assist.