Nicosia, Cyprus. More than 600 Cypriot nationals living abroad have expressed interest in returning to work in Cyprus under a government incentive plan, MPs at the House finance committee heard on Monday. The finance ministry said over 600 applications have been submitted through the official platform.
Government initiative and response
The plan forms part of a talent repatriation initiative announced by the president, offering tax incentives and other measures to encourage skilled workers and Cypriots living abroad to return. The finance ministry described the response as a sign of the plan’s effectiveness in attracting individuals who spent time abroad to gain experience.
Current tax incentive framework
Under the current framework, individuals who worked abroad for three consecutive years for a non-resident employer can receive a 20 per cent exemption on their first employment income in Cyprus, capped at €8,550 per year, valid for seven tax years. The article applying this exemption is set to expire in 2027.
Proposed changes to the bill
A revised bill aims to expand and improve existing tax incentives introduced in 2022. The proposed changes increase the exemption to 25 per cent of income from employment or profits from self-employment, with a maximum annual limit of €25,000.
Eligibility requirements
To qualify under the proposed changes, an individual must have lived outside Cyprus for seven consecutive years and earned more than €30,000 annually, either from employment or business activity. For those holding recognised academic qualifications, three years of work abroad is sufficient, while seven years is required for those without such qualifications.
Would you consider applying for the incentive plan to return to work in Cyprus?