Cyprus’ bid to reverse a decade of brain drain is gaining traction: finance-ministry officials told parliament on 19 January that over 600 Cypriot professionals based abroad have already applied to return under a revamped tax-incentive package. The disclosure came during a Finance Committee review of legislation that will raise the income-tax exemption for returnees from 20 % (capped at €8,550) to 25 % (capped at €25,000) and reduce minimum overseas residency to seven years. (en.politis.com.cy)
Under the proposal, self-employed individuals would for the first time enjoy the same break as salaried employees, while high-earners who spent 15 years abroad could claim a 50 % exemption if their Cypriot salary tops €55,000. Lawmakers from opposition parties queried the fairness of retroactive provisions that would apply benefits from 1 January 2025, but the government argues the measure is essential to plug skills gaps in tech, finance and professional services.
Corporate-relocation advisers say the updated framework, when passed, will make Cyprus one of the most competitive EU jurisdictions for returning nationals—roughly matching Portugal’s non-habitual resident regime but with lower cost-of-living hurdles. HR leaders with dispersed Cypriot talent pools are already assessing whether local subsidiaries can fast-track intra-company transfers to take advantage of the seven-year rule.
![Tax-Break Reforms Attract More Than 600 Overseas Cypriots to Repatriate]()
Business associations also urge the state to streamline immigration workflows for non-Cypriot spouses and dependants, warning that slow family-reunification procedures could blunt the scheme’s appeal.
In that context, global applicants don’t have to navigate the residence-permit maze alone: VisaHQ, an online visa consultancy with a dedicated Cyprus desk (https://www.visahq.com/cyprus/), streamlines paperwork for returning professionals and their foreign family members—coordinating document authentication, appointment scheduling and real-time status tracking so employers can focus on relocation logistics instead of bureaucracy.
Nonetheless, the early application numbers suggest pent-up demand among diaspora professionals eager to combine Mediterranean living with EU market access.
If approved by the full House before the Easter recess, the incentives could become effective for the 2026 tax year, giving global-mobility teams a narrow window to structure compensation packages and secure housing before a predicted surge in demand.
Under the proposal, self-employed individuals would for the first time enjoy the same break as salaried employees, while high-earners who spent 15 years abroad could claim a 50 % exemption if their Cypriot salary tops €55,000. Lawmakers from opposition parties queried the fairness of retroactive provisions that would apply benefits from 1 January 2025, but the government argues the measure is essential to plug skills gaps in tech, finance and professional services.
Corporate-relocation advisers say the updated framework, when passed, will make Cyprus one of the most competitive EU jurisdictions for returning nationals—roughly matching Portugal’s non-habitual resident regime but with lower cost-of-living hurdles. HR leaders with dispersed Cypriot talent pools are already assessing whether local subsidiaries can fast-track intra-company transfers to take advantage of the seven-year rule.
Business associations also urge the state to streamline immigration workflows for non-Cypriot spouses and dependants, warning that slow family-reunification procedures could blunt the scheme’s appeal.
In that context, global applicants don’t have to navigate the residence-permit maze alone: VisaHQ, an online visa consultancy with a dedicated Cyprus desk (https://www.visahq.com/cyprus/), streamlines paperwork for returning professionals and their foreign family members—coordinating document authentication, appointment scheduling and real-time status tracking so employers can focus on relocation logistics instead of bureaucracy.
Nonetheless, the early application numbers suggest pent-up demand among diaspora professionals eager to combine Mediterranean living with EU market access.
If approved by the full House before the Easter recess, the incentives could become effective for the 2026 tax year, giving global-mobility teams a narrow window to structure compensation packages and secure housing before a predicted surge in demand.
