More than 600 people working abroad have now expressed interest in returning to Cyprus under the government’s enhanced tax incentive scheme “Minds in Cyprus” — an increase of over 100 applications in just two months, after registrations stood at around 500 in November 2025, officials told the House Finance Committee.

According to the Ministry of Finance, applications have been submitted through a dedicated platform, confirming strong interest since the measures were announced. Officials said the scheme appears effective in attracting Cypriots and other skilled workers who moved abroad temporarily to gain experience.

The bill, last discussed in October 2025, is a key pillar of the government’s Talent Repatriation Plan, aiming to boost skills, experience and the tax base.

Under the current framework, in force since 2022, eligible returnees receive a 20% income tax exemption, capped at €8,550 annually for seven years.

The revised proposal increases incentives significantly:

• 25% tax exemption, capped at €25,000 per year, for employees and the self-employed

• Eligibility generally requires seven consecutive years abroad, prior tax residency in Cyprus and income above €30,000

• A 50% exemption applies to those who spent 15 years abroad, earning more than €55,000 annually

The Ministry argues the state ultimately benefits by attracting experienced professionals and expanding the tax base.

Despite broad support for repatriating talent, MPs raised concerns that returnees will benefit twice — from special exemptions and from wider tax reform measures such as higher tax-free thresholds and family-related deductions.

Several MPs warned this could create inequality between workers, particularly disadvantaging those already employed in Cyprus. Concerns were also voiced that the scheme is no longer limited strictly to high-skilled “talent”, as individuals without university degrees may also qualify if they meet time-abroad criteria.

The Cyprus Bar Association highlighted that the bill has retroactive effect from 1 January 2025, allowing those who already returned last year to benefit. While the Legal Service said this is not unlawful, MPs urged caution.

AKEL MP Andreas Kafkalias called for a more balanced approach that also supports professionals who chose to stay in Cyprus, while DIIPA MP Alekos Tryfonides stressed that competitive salaries and working conditions are just as important as tax breaks.

With 600 applications already submitted, “Minds in Cyprus” shows some kind of momentum — but Parliament remains divided over how generous the incentives should be and who should benefit most.