As Cyprus’ technology sector continues to grow, the country is shifting its focus from attracting foreign professionals to convincing Cypriots abroad to come home.

That was the message from a panel at this year’s TechIsland Summit in Limassol on Thursday, where officials and industry leaders examined how Cyprus can turn brain drain into brain gain.

The discussion, moderated by TechIsland chairperson Valentinos Polykarpou, featured Deputy Minister to the President Irene Piki, cultural activist and author Tasoula Hadjitofi, and Exness Co-founder, CEO and TechIsland board member Petr Valov.

Opening the debate, Polykarpou pointed out that while the tech sector has been expanding rapidly, this momentum brings a serious challenge, which is attracting talent.

“Until now, in order to meet this demand, the focus has been on attracting highly qualified professionals from abroad, which has worked well,” he said, citing incentives such as a 50 per cent tax exemption, fast-track work permits for spouses, and EU Blue Cards.

But he made it clear that relying only on foreign workers isn’t sustainable.

“There are thousands of educated and experienced Cypriots who went abroad to study and never returned,” he continued.” When they left, they found better opportunities, large multinationals, high salaries, career advancement.”

Now, he added, the local landscape has changed. “Cyprus can currently offer all of this, the question is: how do we bring these Cypriots back?”

For Deputy Minister Piki, this is now a matter of national policy. She said the government’s international business strategy, which began in 2022, was revised this year with a clear focus of attracting skilled Cypriots back to the island.

“In 2024, we decided that now is the right time to entice all these excellent Cypriots abroad to return,” she said. This shift also marks a move beyond the country’s traditional professional services sectors.

She presented updated tax incentives as part of this revised approach.

The eligibility threshold has been lowered from 15 to seven years abroad, targeting Cypriots earning over €50,000 who have gained experience in the field rather than simply finishing their studies.

“This threshold ensures that applicants have gained professional experience and have not simply completed their studies,” she said.

To support the transition, the government is also preparing a dedicated platform and further actions, from housing and education support to resolving military service issues, aiming to make the repatriation process easier.

Hadjitofi, who has long worked with Cypriot professionals abroad, was blunt, saying that “Cypriots abroad often enjoy much higher salaries than those they expect in Cyprus.”

That, she said, must be taken seriously when shaping return policies.

She stressed that beyond financial considerations, career prospects, corporate culture, and family support are critical.

Comparing Cyprus with countries like the Netherlands and the UK, she pointed to specific relocation schemes that help professionals resettle with their families, find proper schools, and integrate into the job market with a long-term view.

If Cyprus wants to compete, she added, it will have to address practical issues, like cutting red tape, removing unnecessary requirements such as corporate seals, and developing niche specialisations within tech.

“We must focus on the maturation of the ecosystem and the country’s strategic positioning.”

She also referenced the UK’s Global Talent visa for tech professionals, saying Cyprus could learn from its streamlined approach.

From the business side, Petr Valov made the case that bringing back Cypriot talent makes financial sense for companies.

Culturally, it’s easier to integrate, and relocation costs are lower. “If you invest some money now, you will earn much more in the future,” he said.

Still, he acknowledged a major sticking point. “Cyprus has not managed to offer salaries at the same level as other European countries.”

Without addressing that gap, he warned, repatriation will remain difficult.

Valov also called for state support in the form of tax breaks for companies hiring returning Cypriots. “If, for example, a company hires a Cypriot with a certain salary threshold, it should have tax incentives in return.”

He backed the broader brain gain effort, noting that several major tech players — including Wargaming, Exness, ASBIS and payabl., have already committed to supporting government efforts.

The next step in the campaign is the Brain Gain event in London on May 21, where around 20 companies will meet with Cypriot professionals considering a return.

According to Piki, more than 700 have already registered for the event, which will also be streamed live for those who can’t attend in person.

While it won’t be a traditional career fair, it will serve as a first point of contact between returning talent and the companies looking to hire them.

“We have a really dynamic, smaller ecosystem that is growing,” Piki said, adding that the incentives in Cyprus now rival those of more mature tech markets.

She also pointed to growing interest from American companies, following the President’s recent visit to the US.

Finally, she confirmed that the government is already working on further ways to help companies hire Cypriots, not only those currently in Cyprus but those who are ready to come back.