On 6 March 2026, Cyprus introduced a new personal tax incentive under the “Minds in Cyprus” initiative, aimed at encouraging highly skilled Cypriot professionals working abroad to return and contribute to the country’s growing economy.

The incentive, incorporated into the Income Tax Law (Article 8(21B)), applies retrospectively from 1 January 2025 and complements the existing 20% and 50% tax exemptions available to individuals relocating to Cyprus for employment.

It is available to individuals relocating between 1 January 2025 and 31 December 2030 and applies to both employed and self-employed people.

Key Benefit

Eligible individuals are entitled to a 25% exemption on their annual employment income or business profits, capped at €25,000 per year.

This benefit is granted for a period of seven years, starting from the year in which the individual commences employment or business activity in Cyprus.

Eligibility Criteria

To qualify for the incentive, individuals must meet all of the following conditions:

  • Be Cyprus tax residents (except for the first year of relocation, during which they may also qualify as non-residents)
  • Have not been Cyprus tax residents for at least seven consecutive years prior to relocating
  • Have previously been Cyprus tax residents at some point before the above seven-year period
  • Earn a minimum annual income of €30,000 (salary or business profits) during the first 12 months of employment or business activity. The exemption continues for the following six years, provided this income threshold is maintained

Additional Requirements

Applicants must also demonstrate prior employment abroad on a full-time basis with a foreign employer, as follows:

  • University degree holders (recognized by KY.S.A.T.S): at least 36 months of employment within the 84 months preceding relocation
  • Non-degree holders: at least 84 months of employment immediately preceding relocation.