Cypriots living in London are being courted by their homeland with a lucrative offer: a tax break worth up to £21,000 to entice them back and fuel Cyprus’s rapidly expanding economy.
President Nikos Christodoulides is set to address over 600 members of the Cypriot diaspora at the historic Guildhall next week, where he will unveil the government’s ‘Brain Gain’ strategy – an ambitious initiative designed to reverse decades of brain drain and bring highly-skilled professionals back to the island.
The plan includes a 25% income tax exemption, capped at £21,225 (€25,000), for Cypriot nationals who have worked abroad for at least seven years following their studies. The measure aims to attract scientists, entrepreneurs, and most notably, tech professionals, as Cyprus eyes the continued growth of its burgeoning ICT sector – which now outpaces tourism in its contribution to GDP.
“This is more than just a tax break – it’s a call to come home,” a government spokesman said ahead of the London meeting. “We want to invest in our people and give them real reasons to return and thrive.”
Cyprus’s ICT industry has witnessed a surge, thanks in part to increasing foreign direct investment and a strategic push by the government to position the Eastern Mediterranean nation as a tech hub. Earlier this month, a high-level delegation travelled to Silicon Valley, holding talks with major tech players including Amazon, Nvidia, Google, and Oracle. The mission: to attract global firms to set up operations in Cyprus.
In 2023 alone, Cyprus secured £2.67 billion in foreign direct investment, according to figures from Invest Cyprus, the national investment promotion agency. This helped create over 2,500 jobs, and more than 800 technology companies are now operating across the island.
At 3.4%, Cyprus recorded one of the highest growth rates in the eurozone last year, buoyed by a strong tourism sector and investor confidence. The International Monetary Fund projects growth of around 2.5% this year, with expectations for continued stability and expansion in the medium term.
“The strengthening of tax incentives in a targeted manner is not just a tool to attract talent from abroad; it is an act of political substance,” said the government spokesman. “It sends a clear message – that the Republic of Cyprus values the expertise of its people and is committed to building a prosperous future together.”
The London event on 21 May will not only feature President Christodoulides but also include Cypriot and international business leaders, as well as expats who have already returned home to share their experiences.
Housing support, education opportunities, and access to free healthcare are also being offered as part of the package. Government officials argue that these non-financial incentives are just as important in making the prospect of returning to Cyprus more appealing for skilled professionals and young families alike.
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Significantly, the initiative is designed to have no immediate cost to the state, as it targets only new taxpayers, thereby expanding the tax base and contributing to long-term fiscal stability.
Cyprus is not alone in its efforts to bring home global talent. Countries such as Estonia, Ireland, Romania, and Poland have all launched similar campaigns in recent years. Warsaw, for example, is now the leading producer of STEM graduates in Europe, a benchmark Cyprus hopes to follow.
Marios Tannousis, Chief Executive of Invest Cyprus, believes the island’s potential is clear. “We know there is a lot of tech talent among the Cyprus diaspora living in the UK,” he said. “Our generous incentive scheme, combined with the growing opportunities in the tech sector, offers a compelling case for them to return home. With their expertise, we can keep building a modern, dynamic economy.”
For many London-based Cypriots, the offer may be too good to ignore.
