Revised brain gain bill: KEBE proposes holistic framework

The Ministry of Finance has submitted a revised brain gain bill to Parliament, with KEBE proposing a more holistic framework.

Following reactions, the Ministry submitted a new bill with retroactive effect from 2025. Tax exemptions will apply to any employment, and the university degree must be recognized by the Cyprus Council of Recognition of Higher Education Qualifications.

KEBE recommends reducing the period of non-residence in Cyprus from seven to five years and removing the reference to KYSATS, proposing replacement with "holder of a university degree recognized internationally." It considers the KYSATS requirement unnecessary and cumbersome.

KEBE proposes a holistic framework that includes adjusting tax incentives, investing in infrastructure, utilizing returnees in digital transformation projects, public-private sector cooperation, fast-track installation process, incentives for employers, and facilities for families.

The Pancyprian Bar Association argued that tax incentives do not help the return of Cypriot professionals, while Cypriot citizens abroad reported that brain gain does not provide enough opportunities.

The bill is referred to as the Income Tax (Amendment) (No. 3) Law of 2025.