Cyprus spent €407 million on tax benefits for foreigners

From 2021 to 2023, Cyprus granted benefits to 25,277 professionals who relocated to the island. These benefits covered salaries amounting to €1.31 billion over the same period. Current tax reductions range from 20% to 50%.

Leading the list are specialists from Russia, who received €156.9 million in tax breaks on salaries totaling €513.8 million.

Next are 2,825 Greeks (€32.9 million in benefits) and 1,339 Ukrainians (€17.9 million). 781 Belarusians were exempt from €13.6 million in taxes, and 552 Israeli citizens — from €17.4 million.

Also on the list: British (€15.7 million), Lebanese (€5.4 million), Indians (€5.5 million), Germans (€4.9 million), Italians (€4 million), and French (€6.8 million).

The majority of beneficiaries worked in IT, science, and finance.

9,060 employees in information and communication: €136.4 million in tax breaks on €450.2 million in earnings. Next come specialists in scientific and technical fields, administration, trade, and repair. Other sectors — from water supply to healthcare — accounted for over €50 million in benefits.

Cypriot lawyers are dissatisfied with the government’s generosity and claim discrimination against local professionals.

According to lawyers, this encourages locals to leave for countries with better working conditions.

They also criticized the lack of public consultation. Committee members acknowledged the need to revise some provisions of the law.