Concerns over tax exemption for "brain gain" in Cyprus

Concerns regarding the legislative framework for tax incentives aimed at attracting skilled workers and repatriating Cypriots were discussed in the Parliamentary Committee on Financial Affairs.

The Committee's President, Christiana Erotokritou, called for public consultation, as the Pancyprian Bar Association stated they had not been invited to consult with the Ministry of Finance.

Points were raised regarding the definition of "talent" and whether it includes only academic qualifications or also work experience. The Bar Association expressed concerns about unequal treatment of taxpayers, while they were surprised by the Legal Service's position, as they believe the measures reinforce "brain drain".

KEBE and OEB agreed with the Bar Association, emphasizing the need for a holistic framework for the repatriation of talent. Savia Orphanidou, a DISY MP, stressed the need for stricter criteria and a review of the bill. Andreas Kaukalias, an AKEL MP, stated that the Ministry of Finance's proposal is not substantiated due to a lack of data.

Alekos Tryfonidis, from DIPA-Cooperation, stated that there is room for discussion and consultation, while more details will be requested on the strategic planning.

The Ministry of Finance stated it is open to reviewing the law.