Tax incentives and other measures are expected to be introduced to encourage Cypriot scientists to return home, as the reduction in youth unemployment accelerates the repatriation of graduates from foreign universities.
By May at the latest, the incentives and facilities for the repatriation of Cypriot professionals will be announced, as part of an action plan developed by the Presidency of the Republic. A special event is scheduled in London on 21 May, attended by President Nikos Christodoulides, where these measures will be officially presented.
Speaking on the initiative, President Christodoulides has previously highlighted the importance of attracting Cypriot professionals back to the country. He plans to meet with Cypriot expatriates working in the UK to introduce an attractive return package, in collaboration with Cypriot and international businesses seeking skilled personnel. “We will attempt – and I believe we will succeed – in reversing brain drain into brain gain by bringing Cypriot professionals back home,” he stated during a Cabinet meeting last month.
As part of the government’s 2025 planning, the Presidency of the Republic has taken on the responsibility of drafting an Action Plan for Talent Repatriation, in cooperation with the relevant ministries. Drawing inspiration from Greece’s similar initiatives, where brain drain has been a much larger issue, Cyprus is expected to include tax incentives among its measures.
During a recent meeting with Alpha Bank executives, President Christodoulides reinforced the connection between this initiative and Cyprus’ full employment conditions, its growing demand for skilled professionals, and the significant drop in unemployment. Notably, recent data also indicate a sharp decline in youth unemployment, which had previously discouraged Cypriot graduates from returning home after studying abroad.
According to figures released last week by the Ministry of Labour, citing Eurostat data, Cyprus now ranks first among EU member states in youth unemployment reduction. Specifically, the youth unemployment rate (under 25 years old) was 16.1% in March 2023, dropping to 9.9% by December 2024—the lowest level since 2008. This represents a 6.2 percentage point decrease, translating to a 38.5% reduction.
“Achieving full employment conditions positively impacts citizens’ daily lives, and the substantial reduction in youth unemployment creates optimistic prospects for the future of the younger generation in the labour market,” the ministry’s announcement stated.
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Source: Economy today
