Welcome to August in Paphos

August is one of the most vibrant months of the year in Paphos. Long sunny days, warm Mediterranean evenings, lively festivals, world-class sporting events, and a thriving property market continue to attract visitors and new residents from around the globe.

Whether you’re already enjoying life in Cyprus, planning your move, or considering investing in property, we hope this month’s newsletter keeps you informed about everything happening in our beautiful corner of the island.

This Month at a Glance

• Paphos named one of the world’s best sunset destinations by Travel + Leisure

• Stamp duty abolished on qualifying property contracts signed in 2026 

• VAT Changes coming September 1st, 2026

• Electric Harbour Festival returns to Latchi on August 9

• Paphos Beer Festival features over 150 beers and an exclusive opening night drone show

• Celebrate the August 15 Assumption Day holiday throughout Cyprus

• Pafos FC begins another exciting European football campaign

• Help local animal rescues care for our furry friends this summer

Paphos Named One of the World’s Best Sunset Destinations

There are few places where the day ends more beautifully than in Paphos—and now one of the world’s leading travel publications agrees.

Travel + Leisure has recognized Paphos as one of the world’s best places to watch the sunset, highlighting the spectacular Mediterranean coastline and unforgettable evening skies that locals and visitors enjoy year-round.

Whether you’re enjoying the view from Paphos Harbour, Coral Bay, the Sea Caves, Latchi Harbour, or the hillside villages of Tala and Kamares, every sunset reminds us why so many people choose to call Paphos home.

It’s not just about beautiful scenery—it’s about a lifestyle that combines relaxation, natural beauty, and an exceptional quality of life.

Property Market Update

Buying Property in Cyprus Just Became Even More Attractive

If you’ve been thinking about purchasing a home in Cyprus, 2026 has brought several positive changes that make buying property even more appealing. Lower purchasing costs, expanded tax allowances, and continued strong demand in Paphos are creating excellent opportunities for both investors and those relocating to Cyprus.

Stamp Duty Abolished

One of the biggest changes for property buyers this year is the complete abolition of stamp duty on contracts and legal instruments signed during 2026.

Previously, buyers were required to pay stamp duty based on the purchase price of the property. This additional cost has now been removed, making the buying process more affordable and reducing upfront expenses.

Whether you’re purchasing your dream retirement villa, a holiday apartment, or an investment property, eliminating stamp duty means more money stays in your pocket.

Expanded Capital Gains Tax Allowances

Cyprus has also expanded the lifetime Capital Gains Tax (CGT) allowances available to qualifying homeowners.

Although the Capital Gains Tax rate remains 20%, homeowners may now qualify for significantly larger tax-free allowances when selling their primary residence.

For many owners who have lived in their home for at least five years, exemptions may now reach up to €150,000, depending on individual circumstances.

This enhancement provides greater long-term value for those purchasing a permanent home in Cyprus.

VAT Changes Coming September 1, 2026

New VAT legislation comes into effect on September 1, 2026, introducing clearer rules regarding:

• What qualifies as a “new building”
• First-supply VAT rules
• Transitional arrangements for developers and purchasers

If you’re considering purchasing a new-build property, it’s important to understand how these changes may affect your transaction.

At Cyprus101, we work closely with experienced lawyers and tax professionals to help our clients understand every stage of the purchasing process.

Paphos Property Market Continues to Lead Cyprus

Paphos continues to experience exceptional growth and remains one of Cyprus’ most desirable property markets.

Market Highlights

• Strong international demand

More overseas buyers are choosing Paphos for permanent relocation rather than simply purchasing holiday homes.

• Luxury market growth

According to recent Ask Wire market analysis, Paphos accounted for approximately 24% of Cyprus’ highest-value property sales during 2026, with several transactions worth tens of millions of euros.

• Continued confidence

Demand remains strong across luxury villas, resale homes, modern apartments and retirement properties as buyers continue to appreciate Paphos’ outstanding lifestyle, excellent healthcare, low crime rate and Mediterranean climate.

Reduced 5% VAT for Primary Residences

Many purchasers buying a new property as their permanent residence may qualify for the reduced 5% VAT rate, potentially saving thousands of euros.

The reduced rate generally applies when:

• The property will be your primary residence.
• You meet the government’s qualifying requirements.
• The property satisfies the applicable size and usage criteria.

Because every buyer’s circumstances are different, Cyprus101 can help explain the current rules and connect you with experienced legal professionals to ensure you receive the correct advice before purchasing.

Cyprus Permanent Residency Through Property Investment

For many non-EU buyers, purchasing property in Cyprus can also open the door to obtaining Cyprus Permanent Residency.

Benefits include:

• The right to live permanently in Cyprus

• Residency for eligible family members

• Access to excellent healthcare and education

• No requirement to become a Cyprus tax resident unless you choose to do so

Permanent Residency remains one of the most attractive options for international buyers seeking a safe European lifestyle and long-term security.

If you’re considering relocating to Cyprus, our experienced team can guide you through the property purchase and introduce you to trusted immigration professionals.

Featured Community – Kamares

Perched on the hills above Paphos, Kamares remains one of the region’s most prestigious and recognizable residential communities.

Known for its distinctive architecture, peaceful surroundings and breathtaking Mediterranean views, Kamares offers residents a unique lifestyle that combines privacy with convenience.

Residents enjoy:

• Spectacular sea and mountain views
• Cooler summer temperatures.
• Beautiful walking areas
• Mature landscaped surroundings
• Easy access to Tala Village
• Close proximity to Coral Bay beaches
• Short drive to Paphos Town and the International School

Whether you’re searching for a permanent residence, retirement villa or holiday home, Kamares continues to be one of the most desirable addresses in Paphos.

Cyprus101 currently has a selection of beautiful homes available in Kamares. Contact us to arrange a private viewing or browse our latest listings online.

August Events Around Paphos

Paphos Beer Festival

Paphos Medieval Castle

Wednesday, August 5th – Saturday, August 9th

One of the biggest highlights of the summer returns to the beautiful Paphos Harbour.

This year’s opening night features an incredible exclusive drone show over the Medieval Castle beginning at 9:00 PM. The drone display will take place only on opening night, making it a must-see event for residents and visitors alike.

Festival Highlights

• FREE ENTRY

• Over 150 beers from Cyprus and around the world

• Amazing street food

• Live entertainment

The Beer Festival has become one of Paphos’ signature summer events and offers something for the entire family.

Electric Harbour Festival – Latchi

Saturday, August 9

5:00 PM – Midnight

Spend an unforgettable evening at beautiful Latchi Harbour with live DJs, music, entertainment, food vendors, cocktails and a fantastic waterfront atmosphere.

Whether you’re dancing the night away or simply enjoying dinner by the marina, the Electric Harbour Festival is one of the most exciting summer events on the west coast.

Yeroskipou Cultural Festival

The annual Geroskipou Festival continues throughout August with an excellent programme celebrating Cypriot culture and traditions.

Visitors can enjoy:

• Live music
• Traditional dancing
• Theatre performances
• Local crafts
• Delicious Cypriot food
• Entertainment for the whole family

Assumption Day – August 15

Friday, August 15

The Feast of the Assumption of the Virgin Mary is one of Cyprus’ most significant public holidays.

Churches throughout Cyprus hold special services while villages celebrate with traditional festivals, food, music and family gatherings. Many businesses close for the day or even up to 10 days, making it a wonderful opportunity to explore local celebrations or spend time enjoying the beaches and mountains with family and friends.

Pafos FC Update

The excitement continues for Pafos FC as the club begins another important month of European football.

Supporters are eagerly following the team’s UEFA qualifying matches while preparations continue for the upcoming Cyprus First Division season.

Following another highly successful campaign, Pafos FC has continued strengthening its squad during the summer transfer window and hopes to build on last season’s success both domestically and in European competition.

The club’s continued growth has placed both Pafos FC and our city firmly in the international spotlight, bringing increased recognition to the Paphos region.

Good luck to Pafos FC as they proudly represent Cyprus this summer.

Help Our Local Animal Rescues

Every summer brings a heartbreaking increase in abandoned puppies and kittens across Cyprus. Local shelters are currently caring for hundreds of animals while facing rising veterinary bills and increasing demands for food and supplies.

If you’re able to help, donations of the following items are urgently needed and most appreciated.

Most Needed

• Dry dog food
• Dry cat food
• Puppy food
• Kitten food
• Wet food
• Bleach
• Laundry detergent
• Paper towels
• Cleaning supplies
• Blankets
• Towels
• Puppy training pads

Donations can be dropped off directly at:

• Tala Cat Sanctuary
• Animal Rescue Cyprus (Kato Paphos)
• Alex’s Farm of Strays Animal Rescue
• Friends of Peyia Dog Pound

Every bag of food, every towel, every cleaning product and every donation makes a real difference to animals waiting for loving homes. Thank you for supporting the wonderful volunteers who work tirelessly every day to care for Cyprus’ abandoned animals.

Thinking About Buying or Selling?

Whether you’re relocating to Cyprus, searching for a holiday home, investing in property or preparing to sell, the Cyprus101 team is here to guide you every step of the way.

With decades of experience in the Paphos property market, we pride ourselves on honest advice, local expertise and exceptional customer service.

Visit www.cyprus101.com to browse our latest listings or contact us to discuss your property goals.

Cyprus101 Estate Agents

Licensed Real Estate Agent RN560 | Lic. No. 41E

Telephone: +357 26 271292

Email: cleo@cyprus101.com

Website: www.cyprus101.com

Thank you for reading our August newsletter. We wish you a wonderful summer and look forward to helping you find your perfect place in Cyprus.