The Cypriot government’s renewed effort to attract expatriate professionals and entrepreneurs is back before Parliament, as MPs begin examining the revised Talent Repatriation Bill.

The bill, part of the “Minds in Cyprus” initiative, seeks to encourage skilled Cypriots abroad to return home and contribute to the economy by offering targeted tax incentives for both employees and self-employed individuals.

The updated proposal introduces a 25% income tax exemption on employment or business income earned in Cyprus by eligible returnees, capped at €25,000 per year. The exemption applies for up to seven consecutive tax years, starting from the year of arrival or the start of employment.

The measure will have retroactive effect from January 1, 2025, and represents a significant upgrade from the previous 20% exemption (capped at €8,550 annually).

According to the Ministry of Finance, the incentive applies to those who:

• Begin working or conducting business in Cyprus between 2025 and 2030.

• Earn over €30,000 in the first year of their activity.

• Have not been Cyprus tax residents in the past seven years but were residents at some earlier point.

• Hold a recognized university degree and have worked abroad for at least 36 months within the last seven years, or have seven years (84 months) of full-time employment abroad even without a degree.

The tax break can be used only once in a lifetime and cannot be combined with the existing Article 8(21A) exemption, which remains in force until 2027.

The “Minds in Cyprus” initiative is a cornerstone of the government’s broader strategy to reverse the brain drain and attract both returning Cypriots and foreign high-skilled professionals. The Ministry of Finance emphasized that the framework now explicitly includes self-employed individuals and has been refined following extensive consultations and two rounds of amendments since the original bill’s introduction in May 2025.

The Parliamentary Committee on Finance and Budget reviewed the revised version in late June 2025, incorporating feedback from experts and stakeholders.

The Presidency announced that over 300 Cypriots living abroad registered on the “Minds in Cyprus” platform within less than two weeks of its launch on 26 August 2025, underscoring strong interest in the initiative.