Cyprus’ €2 Billion Tax Incentives: A Strategic Magnet For Global Talent

by THEFUTURE.TEAM

January 21, 2026

Overview Of Cyprus’ Tax Advantage Strategy

Between 2021 and 2024, Cyprus allocated tax deductions and exemptions totaling approximately €2 billion to attract skilled professionals from abroad. This initiative has successfully integrated 46,605 professionals representing more than 48 nationalities into the local workforce, underscoring the island’s emerging role as a hub for global talent.

Yearly Performance Metrics

According to official parliamentary data, the tax incentive program yielded concessions totaling €1.3 billion over 2021-2023. In 2021, 9,794 professionals claimed exemptions worth €228.5 million, while 15,449 beneficiaries in 2022 secured benefits amounting to €442.5 million. The scheme expanded further in 2023 with 20,191 claimants receiving €647.1 million, and continued to grow in 2024 with an additional 21,328 professionals benefitting from deductions worth €724.5 million.

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Fiscal Policy To Attract Global Talent

The current legal framework provides tax relief ranging from 20% to 50%, forming an attractive, flexible, and accessible fiscal regime established in 2022. With the upcoming reintroduction of the “Minds in Cyprus” bill before the Parliamentary Committee on Economic Affairs, the government aims to expand this framework. Proposed enhancements include increasing the initial tax exemption from 20% to 25%, raising the maximum deductible amount from €8,550 to €30,000, and reducing the required non-residency period from 15 to 7 years. Additionally, applicants must not have been tax residents in Cyprus during any year within the seven-year period preceding their application.

National And International Beneficiaries

Data indicates that 42.2% of the newly arrived talent comprises Russian professionals, who claimed €869.2 million in tax incentives – a figure corresponding to 43.5% of the overall concessions. Other notable beneficiaries include professionals from Ukraine, Greece, and returning Cyprus nationals. The majority of recipients are expatriates from countries including Russia, Ukraine, Lebanon, Israel, the United Kingdom, the United States, China, and Australia, with European citizens constituting 80% of the foreign talent. Meanwhile, Cyprus nationals only accounted for 19.6% of the beneficiaries, claiming €371 million in relief.

Sectoral Distribution Of Tax Incentives

The tax break program has predominantly benefited professionals in media and communications (including the software industry), scientific and technical fields, as well as financial and insurance services. Key figures include:

17,497 professionals in media and communications received exemptions totaling €739.4 million.
11,240 employees in scientific and technical activities benefited from €495.9 million in deductions.
3,675 individuals in financial and insurance services secured €124.5 million in relief.

Other sectors such as retail trade, administrative services, transportation, construction, public administration, healthcare, and education also registered significant fiscal benefits, highlighting the extensive economic impact of this initiative.

Future Outlook And Strategic Initiatives

The government is determined to have the “Minds in Cyprus” legislation approved before the end of the current parliamentary session in April, ahead of the May elections. This strategic policy aims to further incentivize the inflow of global talent and facilitate the return of Cypriot professionals working abroad. Recent outreach in markets such as the United Kingdom reflects this broader ambition and the commitment to strengthening the island’s competitive position in the global economy.

Conclusion

Cyprus’ tax incentive program exemplifies a strategic use of fiscal policy to drive economic innovation and talent attraction. With a carefully structured and evolving framework, the island is poised to reinforce its status as a dynamic hub within the competitive global marketplace.

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EU Services Production Grows As Information And Communication Lead

by THEFUTURE.TEAM

November 10, 2026

Services production continued to expand across the European Union in August 2026, with information and communication recording the strongest annual growth. However, performance varied significantly between industries and member states, while Cyprus reported a mixed picture, with business services expanding and hospitality-related activities declining.

Information And Communication Leads Sector Growth

Compared with August 2025, services production increased by 5.9% in the euro area and 5.8% across the EU in information and communication. Transportation and storage also recorded growth, rising by 2.1% and 1.9%, respectively.

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Real estate activities increased by 1.6% in the euro area and 1.1% in the EU. Professional, scientific and technical activities grew by 1% in both areas, while administrative and support services advanced by 1.1% and 1.3%.

Accommodation and food services was the only major sector to record an annual decline, falling by 0.1% in both the euro area and the EU.

The monthly figures were more mixed. Information and communication remained the strongest performer, increasing by 1.2% in the euro area and 1% across the EU. Real estate activities rose by 0.4% and 0.9%, respectively, while transportation and storage edged up 0.1% in the euro area but declined by 0.2% in the EU.

Administrative and support services recorded modest gains of 0.2% in the euro area and 0.1% in the EU. Accommodation and food services fell by 0.3% and 0.4%, while professional, scientific and technical activities declined by 0.8% and 0.9%, respectively.

Slovakia And Greece Record Strongest Annual Growth

Romania recorded the largest monthly increase in services production, at 5.2%, followed by Malta at 1.8% and Portugal at 1.7%. Luxembourg experienced the steepest decline, with output falling by 5.1%, followed by Bulgaria at 2.3% and Denmark at 1.9%.

On an annual basis, Slovakia led with growth of 10%, followed by Greece at 9.3% and Malta at 7.5%. Hungary recorded the weakest performance, with services production declining by 5.6%. Denmark fell by 5.3%, while Italy recorded a smaller decrease of 0.3%.

Cyprus Sees Growth In Business Services But Weakness In Hospitality

Cyprus’ latest figures show a similar divide between expanding business services and weaker hospitality-related activities. According to the Statistical Service of Cyprus (Cystat), professional, scientific and technical activities recorded the strongest annual growth among the covered sectors in the second quarter of 2026, increasing by 3.4%.

Transportation and storage and information and communication both grew by 2.1%, while real estate activities rose by 1.6%. In contrast, accommodation and food services declined by 3.1% year on year, and administrative and support services fell by 2.2%.

First-half results were more favourable for several sectors. Between January and June, professional, scientific and technical activities grew by 3.5%, transportation and storage by 2.8%, real estate by 2.1% and information and communication by 1.3%.

Nevertheless, administrative and support services contracted by 1% over the six-month period, while accommodation and food services declined by 0.7%.

How Cyprus’ Figures Differ From Eurostat’s Data

The Eurostat and Cystat figures measure different aspects of economic activity and are not directly comparable. Eurostat’s services production index tracks changes in the volume of output, whereas Cystat’s Turnover Value Index for Services and Transport measures the value of sales at current prices.

The reporting periods also differ: Eurostat’s figures cover August, while the cited Cypriot data relate to the second quarter and first half of 2026.

Cystat transmits services production data to Eurostat but does not yet publish a separate national production index. Turnover figures therefore remain the main publicly available national indicator for the sector.

Taken together, the data point to continued growth in several of Cyprus’ business-oriented services, alongside persistent pressure on accommodation, food and administrative support activities.

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