in-cyprus 24 April 2025
President Nikos Christodoulides on Thursday announced new tax incentives aimed at encouraging skilled Cypriots working abroad to return home, as part of a broader strategy to transform “brain drain” into “brain gain”.
The new measures include a 25% tax exemption on first employment earnings and an increase in the maximum annual tax relief from 8,550 euros to 25,000 euros for Cypriots who have worked abroad for at least seven years after completing their studies, Christodoulides told a cabinet meeting.
“On May 21, we will hold our first meeting in London as part of this new strategy, with participation from Cypriot and foreign entrepreneurs, as well as citizens who have chosen to return to Cyprus,” the president said.
The government will also present non-legislative incentives related to education and housing as part of a comprehensive package to attract talent back to the island, he added.
Christodoulides highlighted housing as a consistent priority on the cabinet’s agenda, noting that seven housing schemes have been launched within two years, which have received strong response, particularly from young citizens.
“Our housing policy remains dynamic, as the schemes are continuously evaluated and subject to improvements,” he said, adding that the cabinet had approved changes to two schemes last week and revised income criteria for plans managed by the Cyprus Land Development Corporation during today’s meeting.
The revised criteria will expand access to these schemes and enhance the ability to purchase or rent residential units through the organisation, according to the president.
Christodoulides expressed confidence that the expatriate return initiative would yield positive results, based on interest already shown
