More than 600 Cypriot nationals living abroad have expressed interest in returning to work in Cyprus under a government incentive plan, MPs athe the House finance committee heard on Monday.

The plan, part of a talent repatriation initiative announced by the president, offers tax incentives and other measures to encourage skilled workers and Cypriots living abroad to return.

A spokesperson for the finance ministry said that since the measures were announced, over 600 applications have been submitted through the official platform.

The ministry described the response as a sign of the plan’s effectiveness in attracting individuals who spent time abroad to gain experience.

A revised bill aims to expand and improve existing tax incentives introduced in 2022.

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.

The proposed changes in the bill increase the exemption to 25 per cent of income from employment or profits from self-employment, with a maximum annual limit of €25,000.

To qualify, 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.

The bill also includes a 50 per cent exemption for individuals outside Cyprus for 15 years with annual earnings over €55,000.

Representatives from the bar association highlighted potential fairness issues with the incentives.

They questioned whether the benefits would favour returning professionals over residents who have worked in Cyprus under similar conditions.

Concerns were raised over the retroactive application of the law from January 1, 2025, which could benefit individuals who already returned without waiting for the bill’s approval.

The bar association emphasised the need for the law to ensure that returning professionals contribute their expertise to sectors relevant to their experience abroad.

Akel MP Andreas Kafkalias stressed that while incentives for repatriating Cypriots are welcome, proposals must be fair and socially beneficial.

He called for a thorough review of the legislative framework and consideration of the tax reform, which has already increased tax-free thresholds and altered rates.

Dipa MP Alekos Tryfonides welcomed the plan but stressed that incentives should align with adequate pay and long-term prospects for returning young professionals and their families.

The talent repatriation initiative, branded Minds in Cyprus, includes several complementary measures alongside tax incentives.

A centralised website provides practical guidance on repatriation, including access to healthcare, education, public services, research funding and entrepreneurship support.

The online platform launched in September 2025 matches high-skilled job seekers with vacancies from partner companies in Cyprus.