Greek Cypriot Government Spokesman Konstantinos Letymbiotis said on Thursday that the Council of Ministers authorised the Minister of Finance to immediately submit before the House of Representatives a bill regarding tax incentives for the repatriation of Cypriots who work abroad with the aim of reversing brain drain of scientists and other professionals.
In statements after the meeting of the Council of Ministers, at the Presidential Palace, the Spokesman said that the amending bill that will be submitted, provides for an income tax exemption of 25% and a maximum limit of €25,000 for scientists and professionals who have worked abroad for 7 years after completing their studies.
The Spokesman added that flexibility is introduced in the eligibility criteria, in order to facilitate the return of professionals who can directly contribute to the innovation, productivity and competitiveness of the economy.
The bill concerning the tax framework, he said, constitutes another decisive step towards achieving a strategic goal of national importance namely the reversal of the brain drain of scientific and professional potential.
Letymbiotis noted that this decision “constitutes an intervention of a comprehensive Action Plan for the Repatriation of Talent” which is under formulation and will be presented at an event in London on 21 May 2025 by the Greek Cypriot leader.
He pointed out that this measure does not entail any direct fiscal cost, as it targets exclusively new taxpayers, strengthening the tax base in the medium term and adding long-term value to fiscal stability.
In addition, he said that the provision for an evaluation of the framework every five years ensures adaptation to socio-economic developments, further strengthening the effectiveness of the measure.
“In a period where economic conditions in Cyprus remain consistently favourable and macroeconomic indicators strengthen confidence in the country’s course, we are creating attractive and competitive prospects for the return of human capital that was once forced to seek opportunities abroad,” he concluded.
( Source: CNA)
