The plenary of the House of Representatives has approved the 'brain gain' bill aimed at offering tax incentives to attract Cypriot and foreign scientists to Cyprus.
The bill amends the Income Tax Law in order to grant tax incentives and other facilities aimed at the movement of skilled workers to the Republic and the repatriation of Cypriot citizens. The bill is included in the Action Plan for the Repatriation of Talent and is expected to make the existing tax framework more attractive, flexible and accessible.
Based on the current legislation, an individual who for three consecutive years, prior to the commencement of his employment in the Republic, was employed outside the Republic by an employer non-resident in the Republic and whose employment in the Republic commenced after 26 July 2022, is exempt from income tax, with effect until 2027, for a percentage of 20% of the remuneration from first employment in the Republic or an amount of €8,550, whichever is the lesser.
The exemption is granted for seven tax years, starting from the year following the year of employment in the Republic.
The proposed regulations provide for an increase in the percentage of remuneration from first employment in the Republic that is exempt from income tax from 20% to 25%, an increase in the maximum amount of tax exemption from €8,550 to €25,000 and a reduction in the required period of time outside the Republic for an individual to benefit from the exemption from fifteen to seven years after completing their studies.
(Source: CNA)
