Business Daily: Cyprus Has a 'Brain Gain' Plan

BBC World Service | Host: Daniel Rosney
Release Date: September 22, 2025

Episode Overview

This episode explores Cyprus’s ambitious new "Minds in Cyprus: Brain Gain" initiative—a government plan aimed at reversing the “brain drain” by luring back talented professionals from its large diaspora. Host Daniel Rosney investigates the details of the program, the challenges of enticing citizens to return, and addresses the criticisms of a potential two-tier employment system. The episode also places Cyprus’s efforts in a broader, global context, looking at how other nations are responding to similar demographic and economic challenges.

Key Discussion Points & Insights

1. The ‘Brain Gain’ Initiative: What Is It?

• Cyprus seeks to attract Cypriot professionals working abroad—especially in business, technology, and innovation—to return and contribute to a modernizing economy (00:58).
• Main incentives include:
  • 25% tax cut for returnees after seven years abroad
  • Tripling of maximum tax exemption
  • Housing support, and assistance with education and healthcare for returning citizens (00:58–01:37).
• Launch took place in London, home to an estimated 300,000 Cypriots, highlighting the scale of the diaspora (02:54).

Notable Quote

"Together we can reverse the brain drain into a brain gain."
—Daniel Rosney (00:58)

2. Voices from the Diaspora: Real Stories

• Nicholas: 28-year-old Cypriot paralegal, left seven years ago for better career prospects in the UK (03:39).
  • Highlights the challenge of independence and housing affordability in Cyprus versus London.
  • Finds the initiative attractive but notes that career trajectory remains his primary concern.
• Pavlos Clientes: Left Cyprus amid financial crisis, built a business in the UK before returning (17:00).
  • Skeptical about financial incentives as a motivation:

    “You are not coming back because someone is giving you for a few years some tax break.”
    —Pavlos Clientes (17:02)

  • Emphasizes need for greater international trade links and not just reliance on local market (17:28).

3. Government Perspective: Deputy Minister Irene Pickey Interview

• Stresses the urgency: Cyprus has “nearly as many people abroad as at home” (04:51).
• Refuses to set hard targets for returnees but suggests a few thousand returns would be a “great success” (06:22).
• Responds to criticism about possibly creating a two-tier workforce due to tax breaks:
  • The incentive is temporary (7 years).
  • It's designed to aid relocation costs, not to create permanent inequality (08:16).
  • Plans to abolish the prior residency requirement for housing grants for returnees (06:47).

Notable Quotes

“The project for me is going to be a success from having the right people moving back to the country.”
—Irene Pickey, Deputy Minister (05:56)

“It's just a trigger for people to come back. It's not creating an inequality forever...”
—Irene Pickey (08:16)

4. International Context: Comparisons & Academic Insight

• Other countries’ approaches:
  • Croatia: Financial incentives for returnees, but focused on less developed regions.
  • Portugal: Major tax breaks for under-35s to prevent emigration (12:52).
• Academic perspective (Katja Batista, economics professor):
  • Highlights multiple benefits of diaspora—remittances, educational motivation, international investment, and trade ties (13:35–15:02).
  • Policy should address more than just financial incentives—lifestyle and career opportunities also drive migration.
  • Demographic decline means that attracting skilled migrants is critical.
  • Notes these policies are common but especially hard in low-income countries most affected by brain drain.

Notable Quote

“When the most skilled people leave the country, this will be a drag on its growth and development. But… both the diaspora... and those that come back... can benefit the country in multiple ways.”
—Katja Batista (13:42)

5. Challenges & Criticisms

• Housing Crisis: Recognized as a major barrier, and government is adapting grants to include new returnees (06:47).
• Risk of Two-Tier System: Differing tax burdens for returnees and locals could cause workplace tension (07:56–09:03).
• Preparedness: Some, like Pavlos Clientes, note the initiative is still in proposal/PR phase, not yet law (17:28).
• Market Readiness: If Cyprus cannot develop strong international links for local companies, returning professionals might face limited career progression (17:28).

6. Returnees’ Real Motivations

• Financial perks matter, but personal choice, career development, and sense of home are key.
• Some, like Nicholas, may time their return to maximize tax incentives but make career their main driver (19:33).

Notable Quote

“It is a positive change. It is something I will consider... If I'm close to the threshold or not, maybe I extend my stay in the UK to get that benefit. My main goal… is to qualify as a solicitor and then if I have this benefit, this tax incentive, then that's an added benefit.”
—Nicholas (19:33)

Notable Quotes & Memorable Moments

• The vision:
  “Together we can reverse the brain drain into a brain gain.” (00:58 – Daniel Rosney)
• Returnee’s skepticism:
  “You are not coming back because someone is giving you for a few years some tax break.” (17:02 – Pavlos Clientes)
• Government’s stance:
  “It’s just a trigger for people to come back. It’s not creating an inequality forever...” (08:16 – Irene Pickey)
• Academic context:
  “Both the diaspora... and those that come back... can benefit the country in multiple ways.” (13:42 – Katja Batista)

Segment Timestamps

• Intro & Cyprus Brain Gain launch context: 00:58–04:28
• Interview with Nicholas (diaspora perspective): 03:39–04:28; 19:33–20:06
• Interview with Deputy Minister Irene Pickey: 04:51–11:08
• International comparisons & academic analysis: 12:52–16:57
• Pavlos Clientes interview (returnee/business owner): 17:00–19:09

Conclusion

Cyprus’s Brain Gain plan is an ambitious, multi-faceted response to the loss of skilled human capital over decades. The initiative provides financial incentives, but faces real challenges—including societal tensions, infrastructure limits, and the need to create a dynamic ecosystem that competes not just on tax but on career opportunity and quality of life. The episode highlights both optimism and skepticism in the community, situating Cyprus’s efforts within a broader global trend among smaller and aging nations.

For policymakers and the diaspora alike, the underlying reality is that attraction—and retention—go beyond tax breaks to the heart of what makes a nation a place worth coming home to.