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Why Paphos is Dominating the Property Market for International Buyers in 2025
2 May 2025
Paphos property market for international buyers sees a record-breaking rise in 2025, overtaking Limassol. Discover why Paphos is now Cyprus’s top investment hotspot.
Introduction to the Paphos Property Boom
Over the past year, Paphos has catapulted to the forefront of Cyprus's real estate landscape, becoming the most attractive destination for international property buyers. Once a quieter alternative to bustling Limassol or cosmopolitan Nicosia, Paphos has now claimed the spotlight.
In March 2025 alone, Paphos recorded a remarkable 204 property transactions, a figure that stands out when compared to Limassol’s 172 sales. This isn't just a blip—it reflects a 38% year-on-year increase in foreign buyer activity, an uptick driven by a unique blend of economic, lifestyle, and investment incentives.
The Rise in Property Sales: Key Statistics
The recent data from Cyprus’s Land Registry highlights a compelling narrative:
- 204 properties sold in March 2025 in Paphos—the highest across all districts
- 38% increase in international demand compared to March 2024
- Limassol, traditionally the leader, recorded 172 sales, placing second
This trend signifies a shift in buyer preferences, as Paphos gains ground not just for affordability but as a long-term strategic investment.
International Demand: What's Fueling the Growth?
The surge in interest is not random. It’s the result of targeted infrastructure development, government policies, and international marketing. Several key factors are behind this boom:
- Investor-Friendly Residency Schemes: Cyprus’s Permanent Residency through investment attracts affluent individuals.
- Digital Nomads & Remote Workers: Favorable climate, affordability, and fiber connectivity make Paphos ideal for digital expats.
- Interest from UK, Germany, Israel, and Russia: These nations dominate the buyer demographic.
These international buyers are often middle-aged investors, retirees, or entrepreneurs looking for either rental income, a retirement base, or a second home in the sun.
Economic and Political Stability in Cyprus
Cyprus remains one of the most stable countries in the Eastern Mediterranean, a fact that provides great confidence to investors. Being a European Union member, it offers:
- Legal and banking transparency
- Free movement of capital and services
- Favorable tax environment
- No inheritance tax
Additionally, dual citizenship options and investment programs continue to attract non-EU investors, particularly from Asia and the Middle East.
Why International Buyers Prefer Paphos
Paphos holds a unique appeal:
- Mediterranean Climate: Over 300 days of sunshine per year
- Natural Beauty: Coastal promenades, mountains, and UNESCO World Heritage Sites
- English-Friendly Environment: Most locals speak English, easing integration
- Affordable Living: Daily expenses are significantly lower than in Western Europe
This makes it highly livable and culturally rich, perfect for retirees and families alike.
Types of Properties in Demand
Different buyers have varied tastes, and Paphos offers a versatile property portfolio:
- Luxury Villas: Gated communities, sea views, private pools
- Modern Apartments: Often in central areas with amenities and rental demand
- Beachfront Residences: Prized for high ROI through short-term rentals
- Off-Plan Properties: Lower initial cost and customizable design
Both resale and off-plan developments are in demand, with developers actively launching new projects in popular suburbs.
Hotspots in Paphos for Property Investment
Several neighborhoods and villages are seeing concentrated investment:
- Kato Paphos: A vibrant hub for tourism and short-term lets
- Peyia: Popular with British expats, scenic sea views
- Coral Bay: High-end resorts and beachfront homes
- Tala: Elevated position with panoramic views and tranquility
Each area offers distinct investment profiles, from high rental yield to capital growth.
Comparing Paphos with Limassol and Larnaca
| City | Avg. Property Price (€/m²) | ROI | Short-Term Rental Demand |
| Paphos | €1,700 | 6.5% | High |
| Limassol | €2,400 | 5.8% | Very High |
| Larnaca | €1,600 | 5.3% | Moderate |
While Limassol remains a business hub, Paphos wins on lifestyle, affordability, and rental profitability, especially in peak seasons.
Benefits of Investing in Paphos Real Estate
Investors in Paphos enjoy:
- High Return on Investment: Driven by tourism and student populations
- Residency via Investment: Fast-track permanent residency for non-EU nationals
- Tax Incentives: No immovable property tax and low transfer fees
- Robust Rental Market: Long-term and Airbnb-type rentals are booming
Legal Process for International Property Buyers in Cyprus
The legal process is clear but requires expert guidance:
- Hire a Licensed Lawyer
- Sign Reservation Agreement
- Due Diligence and Title Check
- Contract of Sale Registration
- Permission from Council of Ministers (for non-EU buyers)
Most transactions are completed within 2-3 months.
Taxes and Fees Involved in Buying Property in Paphos
| Type | Amount |
| Property Transfer Fees | 3-8% depending on value |
| VAT (new builds) | 5-19% |
| Stamp Duty | 0.15–0.20% |
| Lawyer Fees | ~1% of property value |
Cyprus remains one of the more affordable EU countries for property acquisition, even with VAT included.
Challenges Faced by Foreign Investors
While the market is hot, challenges do exist:
- Delays in Title Deeds: A common issue with off-plan purchases
- Currency Exchange Risk: Especially for non-Euro buyers
- Understanding Local Laws: Cyprus has its quirks in planning regulations
These can be mitigated with local legal and financial experts.
Tips for First-Time International Buyers
- Visit the Property Personally
- Choose a Reputable Developer or Reseller
- Ensure Legal Checks on Title and Permits
- Open a Local Bank Account
- Plan for the Long-Term (3-5 years)
Engaging an experienced agent with expat experience is critical to success.
Case Study: A British Couple’s Investment Journey in Paphos
James and Linda, a retired couple from Leeds, chose Paphos in 2024. Within 6 months, they:
- Purchased a 2-bedroom villa in Peyia
- Gained permanent residency
- Earned €12,000 in rental income in 2024
They describe their experience as “life-changing, peaceful, and profitable.”
Future Outlook: Is Paphos a Sustainable Investment Destination?
Yes. Here's why:
- New marina projects and road networks are in development
- Flight connectivity is improving with new routes
- Tourism continues to grow, supporting short-term rental demand
Paphos isn’t just trending—it’s strategically positioned for long-term growth.
FAQs About Buying Property in Paphos
1. Can foreigners buy property in Cyprus?
Yes, both EU and non-EU citizens can purchase property, although non-EU buyers need government approval.
2. Is Paphos safe for families and retirees?
Absolutely. Paphos is known for its low crime rate and friendly communities.
3. What is the average property price in Paphos?
As of 2025, around €1,700/m² for standard properties and up to €3,000/m²for premium locations.
4. Do I need a lawyer to buy property in Cyprus?
Yes, it’s essential to hire a registered lawyer to ensure due diligence.
5. Can I get residency by buying a home in Paphos?
Yes, with a minimum investment of €300,000, you may qualify for permanent residency.
6. Is now a good time to invest in Paphos?
With rising demand and infrastructure growth, 2025 is an excellent timeto consider investing.
Conclusion: Is Now the Time to Buy in Paphos?
Absolutely. With soaring demand, favorable policies, and an unmatched quality of life, the Paphos property market for international buyers is entering a golden era. Whether you're looking to invest, relocate, or retire, Paphos offers a compelling case for 2025 and beyond.