Hello from sunny Paphos! Welcome to your August update, packed with important developments and market trends you need to know as a homeowner or property buyer in Cyprus.
Paphos: Cyprus’ Luxury Property Hotspot
Recent market studies highlight Paphos as the top-performing region for high-end property sales. Between Q1 2024 and Q1 2025, average prices soared by nearly 17%, from around €593,000 to €693,000. Luxury homes are in high demand—and Paphos remains the standout region attracting both local and international buyers.
Secret Valley Set for Billion-Euro Transformation, Boosting Paphos Property Value
A landmark deal is reshaping the landscape between Paphos and Limassol. Columbia Group, a major player in Cyprus’s hospitality and real estate sectors, is acquiring the iconic Secret Valley resort for over €130 million—one of the largest property transactions in the island’s history.
The 5-million-square-metre site will be transformed into a luxury resort destination, featuring a five-star hotel, 3,000 upscale residences, a new golf course, beach club, marina, and retail centre. With high-end infrastructure and lifestyle facilities planned, this project signals a strong vote of confidence in the local market.
For buyers and investors, this is great news: it’s likely to drive up property values, attract further investment, and enhance the overall quality of life in the region. Paphos is rapidly evolving into a premium lifestyle and investment hub—and this development is helping to lead the way for Paphos eal estate.
Trapped Buyers Legislation: A Major Win for Paphos Property Owners
Good news for many property owners stuck in legal limbo: a new law passed on 26 June 2025 now empowers them to obtain title deeds even where sellers’ encumbrances, like mortgages, previously caused delays.
Key points:
- Buyers can seek a court order if banks or developers refuse to release encumbrances.
- The law introduces a 45-day window to file such petitions, suspending other legal action on the property meanwhile.
- Encumbrances can now be removed with written or judicial consent to enable title transfer.
Industry associations confirm the new law restores confidence and will immediately benefit thousands still awaiting deeds.
VAT Update: 5% Rate for Primary Residences in Cyprus
A new VAT regulation came into force on 24 June 2025, applying a 5% reduced rate to newly built primary residences under certain conditions.
Who qualifies?
- Buyers aged 18+ purchasing a property for personal, primary use only, to be lived in for at least 10 years.
- The maximum value must be €475,000, and size capped at 190 m² (or 130 m² without disability benefits).
- Using the property as a rental or investment disqualifies the discount, and such misuse may result in VAT being reclaimed.
The Tax Department is conducting ongoing inspections—especially in coastal areas—to ensure compliance and may demand repayment if misuse is detected.
Local Property & Planning Updates Impacting Paphos
Several important updates have recently come into effect that may impact property owners and residents in the Paphos area:
- Urban Planning Amnesty Scheme: The government’s special program to legalise minor building irregularities officially ended in June 2025. If you missed the window, you may still be able to regularise your property, but it will likely require a more formal—and potentially costly—application process. Let us know if you’d like guidance on next steps.
- Noise Control Enforcement: In a bid to improve community well-being, Paphos Municipality has launched noise pollution checks, especially in busy or tourist-heavy zones. This is part of a wider effort to enhance living standards in key residential areas.
- Rent Increase Cap Introduced: A new government order under the Rent Control Law of 1983 has placed a 6% cap on rent increases for eligible properties between 2025 and 2027. This cap applies mainly to older buildings within designated controlled rent areas, so if you’re a landlord or tenant, it’s worth confirming whether your property is affected.
Thinking of a Move? Find Your Ideal Paphos Property!
Whether you’re dreaming of a new home in the sun or looking to invest in Paphos’s thriving market, Cyprus101 is here to help you navigate with confidence. We’re always adding exciting new Paphos property listings, so be sure to check in regularly or drop us a message to let us know what kind of Paphos property you’re looking for.
Why Choose Cyprus101 for Your Paphos Property Journey?
At Cyprus101, we stay ahead of Cyprus’s evolving property landscape so you don’t have to. Whether you’re:
- Purchasing your new luxury Paphos home.
- Affected by the trapped buyer’s legal delays,
- Or planning to benefit from VAT reductions on Paphos Property.
We’re here to guide you every step of the way.
Enjoy the rest of your summer, and we look forward to helping you find or sell your perfect place in Cyprus!
Warm regards,
The Cyprus101 Team
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