Apartment in Paphos

What to know before you decide

Tax: what applies to this property

This property is sold directly by the developer, which places it on the VAT track rather than the transfer fee track that applies to resale homes. At a starting price of EUR 220,000, the property falls within the range where a reduced VAT rate of 5% may be claimed on up to 130 sqm of covered area, provided it will serve as an actual permanent residence in Cyprus and subject to formal approval and the remaining conditions. Buying it as a holiday home, an investment or a rental carries the full 19% rate. All conditions and brackets are set out in the Cyprus purchase tax guide.

Yield and investment horizon

In Paphos, gross long term rental yields run at roughly 4% to 4.5% on market average. On new developer projects the range we see is 5% to 9%, and yields of 11% and above appear only in managed short term letting schemes. Capital appreciation is estimated at around 7% a year and is never part of the running yield. Apartments of up to two bedrooms are more liquid to let long term and suit buyers looking for running income. You can model a specific scenario in the yield calculator.

The process and our guidance

The purchase is made with the developer alongside a local lawyer, after checks on the land registry, the permits and the developer's financial standing. There is no buyer commission. We guide the whole process from sourcing to handover, and it can be combined with a guided property tour in Cyprus.