Philenews

Cyprus' 'Brain Gain' Schemes: Broadening the Scope Raises Questions

Published January 24, 2026, 06:07
Cyprus' 'Brain Gain' Schemes: Broadening the Scope Raises Questions

Cyprus, like other countries such as Greece, Italy, and Canada, is implementing 'brain gain' schemes offering tax incentives and facilities to professionals from abroad. The aim is to strengthen the economy and develop sectors such as technology and education. From 2021 to 2024, Cyprus has provided tax breaks totaling €2 billion to 46,605 workers from 48 countries, with revenue from the scheme reaching €120 million in 2024. However, the new 'Cyprus Minds' scheme has raised some concerns, as it is aimed at all workers abroad, regardless of their educational level. This means that a university degree or other certifications are not required, only employment abroad for a specific period. Offering incentives is considered legitimate, as professionals who have built their lives abroad would hesitate to leave without some benefit. The government argues that the tax breaks have not led to revenue losses, as these workers contribute to the economy in other ways. Nevertheless, the broad targeting of 'Cyprus Minds' raises questions about the scheme's effectiveness in attracting truly high-skilled talent and whether the incentives are being exploited by individuals who would not significantly contribute to the Cypriot economy.