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Cyprus Offers Strategic Tax Incentives To Attract Global Talent

by THEFUTURE.TEAM

January 21, 2026

Overview Of The Minds In Cyprus Initiative

Cyprus is making headway in its efforts to attract skilled professionals from abroad, launching a revamped tax incentive scheme under the initiative known as Minds in Cyprus. The program is designed to ease the transition for overseas workers into the local workforce by offering significant tax exemptions and broad eligibility criteria, particularly for those who have resided outside the country for seven years.

Program Details And Fiscal Implications

According to reports from the Ministry of Finance, around 600 overseas professionals have already expressed interest in leveraging the new benefits. Under the current framework, employment earnings can enjoy a tax relief of 20% up to €8,550 for a period of seven years. However, the proposed legislative amendment aims to increase this exemption to 25% for self-employed earnings, extending the maximum relief up to €25,000 for those who have lived abroad for the specified period.

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Eligibility Criteria And Comparative Markets

The initiative targets young professionals and introduces variable residency requirements based on educational qualifications. Applicants holding a recognized university degree are required to have spent three years abroad, while those without such credentials must meet a seven-year residency condition. Notably, similar schemes are also being implemented in Greece, reflecting a broader regional trend in fiscal policy aimed at talent retention and attraction.

Stakeholder Concerns And Future Considerations

Despite the positive outlook, some members of the Economic Committee have raised concerns about potential inequalities. Critics argue that the policy may result in a disparity between different groups of workers, effectively creating two tiers of employment. There is a strong call for setting an expiration date for the initiative to ensure its relevance and fairness over time.

Legal Perspectives And Implementation Insights

Representatives from the Cyprus Bar Association, including legal expert Maria Grigoriou, have also voiced concerns. Grigoriou highlighted that the retroactive application of the new provisions, effective from January 1, 2025, might benefit workers who relocated in the previous year. Furthermore, she emphasized the need to align an applicant’s professional experience with the nature of the work in Cyprus to ensure that the scheme truly serves the country’s interests.

Balancing Incentives And Fairness

An official from the Cyprus Employers and Industrialists Federation (OEB) noted that while the tax incentive adds a valuable dimension to Cyprus’s economic strategy, the inherent challenge remains: balancing fairness across all sectors. The official acknowledged that criteria which favor some groups might inadvertently exclude others, underscoring the complexity of designing universally equitable fiscal incentives.

As the scheme continues to evolve, both policymakers and industry stakeholders will be closely monitoring its effectiveness and impact on Cyprus’s competitive edge in attracting global talent.

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Bird Aviation Signs Long-Term EasyJet Maintenance Deal In Cyprus

Bird Aviation has signed a long-term agreement with easyJet to provide scheduled aircraft maintenance services at its Larnaca facilities, expanding the companies’ existing partnership and securing maintenance work in Cyprus for at least seven years.

Seven-Year Maintenance Agreement

The agreement runs for an initial seven years, with an option to extend for a further three years, Bird Aviation said.

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Under the contract, the company will operate two maintenance lines dedicated to scheduled heavy maintenance checks for easyJet’s Airbus A320 family aircraft. All work will be carried out at Bird Aviation’s facilities in Larnaca.

Expanding An Existing Partnership

Bird Aviation said the agreement builds on its long-standing relationship with easyJet and provides a long-term framework for heavy maintenance services. The company added that the contract strengthens the role of its Larnaca base in supporting easyJet’s fleet maintenance programme.

EasyJet Reports Lower Profit

The agreement comes as easyJet faces a more challenging operating environment. The airline recently reported that pre-tax profit fell 70% to £85 million in the April-to-June quarter, compared with £286 million a year earlier, largely because of a £105 million increase in fuel costs following renewed conflict in the Middle East.

The airline also said customers are booking flights closer to departure, affecting the timing of revenue. However, booking trends have improved during the peak summer season, although easyJet said the outlook remains dependent on late-season demand and fuel prices.

Takeover Bid And Industry Challenges

EasyJet is also the subject of competing takeover bids from two U.S. investment firms. The board initially accepted a £5.5 billion offer from Castlelake before recommending Apollo Global Management’s higher £5.7 billion proposal. Any transaction could face scrutiny under European Union airline ownership rules.

Meanwhile, Ryanair also reported weaker earnings, with quarterly profit falling 34% to €538 million after higher jet fuel costs during the Iran conflict. Despite the higher costs, both airlines said demand strengthened during the summer travel season.

“Pricing has been attractive, driving strong late booking demand for our flights and holidays,” easyJet chief executive Kenton Jarvis said.

“Our recent experience is that bookings become strong in the month of departure,” he said. “So I expect that as we move through August, bookings will be above where they were at this time last year.”