Faced with acute labour shortages but also a growing economy, Cyprus is stepping up efforts to turn brain drain into brain gain, rolling out new tax breaks, family support schemes and a digital platform aimed at bringing back professionals from abroad.

At the opening of the World Conference of the Cypriot Diaspora in Nicosia, President Nikos Christodoulides praised expatriates for their role abroad, emphasising that reunification remains the government’s top priority. Eight Cypriots were also honoured for their contribution to the homeland.

Deputy Minister to the President Irene Piki, meanwhile, outlined the progress of the Minds in Cyprus initiative since its launch in London earlier this year, saying it is intended to connect people, ideas and opportunities and depends on the active participation of the diaspora.

A key pillar of the initiative is the expansion of tax incentives. In fact, the exemption has been raised from 20 to 25 per cent of an employee’s salary, while the cap has been lifted from €8,550 to €25,000.

At the same time, the qualifying period abroad has been cut from 15 years to seven, with greater flexibility in employment history requirements.

Payment fraud in Cyprus rose sharply in the second half of 2024, though the island still recorded fewer incidents than the eurozone average, according to the report of the Central Bank of Cyprus (CBC).

The total volume of fraudulent transactions jumped 34 per cent year-on-year to 14,000, while the value increased by 26 per cent to €3 million.

By comparison, the eurozone saw a smaller rise of 7 per cent in volume and 22 per cent in value.

Card payments accounted for the vast majority of cases, with 13,000 incidents representing 94 per cent of the total.

However, their financial impact was lower, amounting to €1.2m or 39 per cent of overall losses. Almost all involved unauthorised transactions, mostly online scams, with 95 per cent taking place over the internet, while fraud at physical points of sale remained limited.

Cyprus has moved to strengthen its role as a regional innovation hub with the signing of a Memorandum of Understanding (MoU) between Chief Scientist Demetris Skourides and Invest Cyprus chief executive Marios Tannousis.

According to the statement, the agreement brings together the Research and Innovation Foundation (RIF) and the Cyprus Investment Promotion Agency, widely known as Invest Cyprus, to accelerate investment in research, technology and innovation, while helping Cypriot companies expand internationally.

Under Skourides’ leadership, the Office of the Chief Scientist provides strategic direction for the country’s innovation ecosystem, while RIF acts as its executive arm, running funding programmes to promote scientific excellence, entrepreneurship and the commercialisation of research.

In this framework, working jointly with Invest Cyprus, the bodies aim to position the island as a leading destination for business and innovation.

More than three quarters of people in Cyprus used internet-connected devices in 2024, outpacing the EU average, official data showed on Thursday.

Eurostat said 76.9 per cent of Cypriots aged 16–74 used such devices, compared with 70.9 per cent across the bloc.

The highest shares were recorded in the Netherlands (94.8 per cent), Ireland (90.6) and Denmark (87.0).

At the bottom were Poland (46.1), Bulgaria (50.8) and Romania (56.6). Greece stood at 56.8, Italy at 63.1 and Germany at 69.5.

Across the EU, smart TVs were the most common devices, used by 57.9 per cent of people.

Unemployment in Cyprus stood at 4.3 per cent in the second quarter of 2025, down from 4.6 per cent a year earlier, according to a report published by the Cyprus Statistical Service (Cystat) on Thursday.

The number of unemployed persons was 22,663 (men 11,019, women 11,644), compared with 23,760 (men 10,980, women 12,780) in Q2 2024.

At the same time, the labour force rose to 528,981 people, or 65.4 per cent of the population, up from 511,423 (65.1 per cent) a year earlier.

Moreover, participation among men reached 71.1 per cent, while for women it was 60.0 per cent.

Meanwhile, the number of employed persons climbed to 506,318, giving an overall employment rate of 62.6 per cent.