The Council of Ministers has authorized the Minister of Finance to immediately submit to the House of Representatives a draft bill introducing tax incentives aimed at encouraging the repatriation of Cypriots working abroad. The goal is to reverse the ongoing brain drain by attracting scientific and professional talent back to Cyprus, Government Spokesperson Konstantinos Letymbiotis announced.

Speaking after the Cabinet meeting at the Presidential Palace, Letymbiotis stated that the proposed amendment provides for a 25% income tax exemption, with a cap of €25,000, for scientists and professionals who have worked abroad for at least seven years following the completion of their studies. The bill also introduces flexibility in eligibility criteria to facilitate the return of professionals who can immediately contribute to innovation, productivity, and the competitiveness of the Cypriot economy.

He noted that the submission of this bill marks “another decisive step towards achieving a strategic national goal: reversing the brain drain and initiating a new era of brain gain for Cyprus.”

Letymbiotis added that this initiative is part of a comprehensive Talent Repatriation Action Plan, currently in development, which will be officially presented during an event in London on May 21, 2025, with the participation of the President of the Republic.

He emphasized that the measure involves no immediate fiscal cost, as it targets exclusively new taxpayers, while strengthening the country’s tax base in the medium term and supporting long-term fiscal stability. The framework will be reviewed every five years to ensure its adaptability to socioeconomic developments, thereby enhancing its effectiveness.

According to the spokesperson, strengthening tax incentives in a targeted manner is “not merely a tool for attracting talent from abroad; it is a substantial policy initiative that sends a clear message: the Republic of Cyprus invests in its people—our compatriots’ talent, expertise, and knowledge—and is actively working to bring them back home.”