On Thursday 24th April Cypriot President Nicos Christodoulidis unveiled a series of initiatives aimed at encouraging Cypriots living abroad to return to the island.
He told a meeting of the Council of Ministers that the government plans to introduce a wide package of incentives, including significant tax breaks, improvements in housing and education, and support for professional integration.
Among the key measures is a 25 per cent tax rebate on income from the first job after return, with an increase in the maximum tax deduction from €8,55,000 to €25,000 per year. This privilege will be available to academics and professionals who have worked abroad for at least seven years after graduation.
The President stressed that this is just the beginning and that the full range of initiatives will be presented on 21 May in London at the first official event for Cypriot returnees. He expressed confidence that the comprehensive approach would attract attention and resonate with the Cypriot diaspora.
We have a holistic proposal and a sincere desire to bring our compatriots back home. I am confident that the results will be positive, given the interest already expressed,' the island nation's president said.
For his part, government spokesman Konstantinos Letimbiotis said that the approval of these measures 'confirms the political will of the government' and is a strategic step in the implementation of the Talent Repatriation Plan.
This plan aims not only at the return of citizens, but also at the influx of scientific, creative and professional potential capable of transforming the country's economy and society," Letimbiotis said.
He also stressed that the tax breaks are not just an economic mechanism, but a political statement of Cyprus' intention to invest in its own people, in their experience, knowledge and value as human capital.
It is worth noting the successful experience of Greece in this regard, where some 300,000 Greeks have returned to the country since the introduction of similar tax incentives in 2020. The impetus was a 50 per cent tax rebate for 7 years for returning citizens, and now this approach has inspired Cyprus to do the same.
According to the Cyprus High Commission in London, there are around 300,000 Cypriots living in the UK and many are considering returning. However, the number of young Cypriots studying in the UK has fallen sharply since Brexit, from over 9,000 students in 2017 to 4,780 in 2024.
Incidentally, the Cypriot Council of Ministers has already approved the amendment to the Income Tax Act, which will soon be submitted to Parliament by the Finance Minister. In addition to tax relief, the bill includes more flexible eligibility conditions aimed at facilitating the return of those who can contribute to innovation, productivity growth and the competitiveness of the economy.
Special attention is paid to the fact that the programme does not require any direct expenditure from the budget and is exclusively focused on new taxpayers, thereby broadening the tax base and strengthening long-term fiscal sustainability. The bill provides for a five-year reassessment of the measures in the light of changing socio-economic conditions.
Today's decision shows that the Cypriot government is not resigned to a brain drain. We are taking action - with a plan, a vision and a strategy. Our aim is to bring back those who can transform the country and help build its future. This is a Cyprus that believes in itself," concluded Letimbiotis.