Paphos is a region in the southwest of Cyprus and is made up of two main settlement areas, Old Paphos and New Paphos, although New Paphos is where the main activity is.

What's so special about it?

Paphos is steeped in myth, legend, history and ancient culture, so much so that the whole town was deemed an official Unesco world heritage site. It is most famous as being the birthplace of Aphrodite, the mythical Greek goddess of love.

Best kept secrets Until the 1970s the area was underdeveloped but now, thanks to investment, it is a popular tourist location.

On the back of EU investment the government has plans for further investment in local infrastructure. The airport will be refurbished by 2008, servicing 2.7 million passengers per annum.

Plans are also in place to build a 1,000berth luxury marina at Coral Bay, which will be the biggest in Cyprus and one of the biggest in the Middle East.

A massive $1bn mixed-use development is also planned on a 250-acre site, which will be known as 'Neapolis' and will consist of a hospital, university, business centre, office park and cultural, sports and leisure facilities.

Who lives here?

Aphrodite is the region's best-known resident, however, mere mortals who were born here include internationally famous composer Marios Joannou Elia and Rauf Denktas, who was Turkish Cypriot leader for more than 30 years.

What's the property market like?

"Cyprus joined the EU in 2004 and the property market has been doing exceptionally well since. In 2006, the BuySell Home Price Index recorded a total increase of 5.9%, making the average home price 157,451.

Although the market has really grown in the last few years, it is expected that this trend will continue, " says Litsa Chrysostomou, marketing manager at BuySell Real Estate.

"In Paphos and similar coastal resort towns, prices are increasing on a year-byyear basis, " says Carlo Walther, head of business development at Rightmove Overseas. "People buying properties inland can find some real bargains and obviously the possibility of VAT change on the land sales next year should help to push up the housing demand." Knight Frank Residential Research predict that prices in Cyprus as a whole will grow by 12.5% in 2007.

How do you go about buying property?

Information on Paphos can be found in a number of publications such as the Cyprus Mail, the Cyprus Property Guidemagazine or Insight, Paphos's glossy lifestyle magazine.

Independent advice can be found at the BuyAssociation and MyOverseasProperty. ie websites.

As a part of the EU, foreigners are allowed to buy property but can only buy one home and can only buy up to 4,014sq m of land;

however, by 2011 the rules will come into line with EU norms.

A lawyer is required to register the property with the government.

Once an offer is accepted and an agreed deposit paid, the sale is binding, so there is no gazumping. A signed contract must be submitted to the Land Registry within two months.

Mortgages are available up to 70-80% of the purchase price. Interest rates vary depending on currency and institution.

Where are the best places to buy?

One of the main tourist and property attractions in the area is the Aphrodite Hills Resort. "The Anarita and the Mandria areas of Paphos are close to Paphos airport and also offer great beaches and golf courses.

Due to the fact that so much is on offer in these areas, owners could benefit from both capital gain and increasing rental returns in these areas, " says Chrysostomou. With planned development to its marina area and Blue Flag beaches, the Coral Bay area is a good investment location.

What's the rental market like?

According to the Global Property Guide, Cyprus is a renters' market and rental properties are plentiful. It reports that the average rental yield on the island is 4.7%.

However, in Paphos it is higher, starting from about 4.95% and rising to 5.5% for larger properties.

Agents at Cybarco report that, typically, properties are rented out shortterm for up to 35 weeks of the year.

However, Chrysostomou believes that in certain areas such as Coral Bay short-terms rentals can also be achieved. In general, a one-bed apartment will generate 343 to 428 per month, a two-bed 445 to 514 per month and a three-bed 548-plus per month.

What type of property is available?

Agents at Cybarco report that foreigners tend to opt for villas but there is a wide variety of apartments available, as well as off-plan houses, traditional village homes and retirement villages.

Average property prices?

The BuySell Home Price Index found that the average price of a house in Cyprus was 160,308. However, as Paphos is one of the more upmarket areas, prices are above average. The Global Property Guide data reports that on average a 50sq m property starts from 145,600, rising to 415,000 for a 150sq m property.

What are the tax breaks with Ireland?

Pensioners get taxed 5%; there is no inheritance tax; at 10% it has one of the lowest corporation taxes in Europe; income tax is one a sliding scale from 0-30%; capital gains tax is 20%; and property tax is 0% if the property is less than 100,000.

Cyprus and Ireland's double taxation treaty is currently being renegotiated.

FAST FACTS

Getting there: XL and BA fly to Paphos but flights are more regular from the UK.
Population: 47,300 Currency: Cypriot Pound (CYP1 = 1.7)
Weather: Temperatures average from 17degreesC in winter to 32degreesC in summer
Transport: The international airport is currently getting a revamp. Roads are good and possibly the best form of transport as there are many motorways. There are no railways but communal taxis are common place.
Going out: Must-see sights are the Paphos Archaeological Park, the Tombs of the Kings, Paphos Fort and Paphos Aquarium. There are many nightclubs and bars in Paphos town centre and along the Coral Bay area, however Kouklia, a traditional Cypriot village, is fast becoming a popular spot.
Eating Out: Paphos offers the full range from fast food, such as KFC and McDonalds, to high class dining at restaurants such as Pavarottis. Cypriot meze-style eating is very common and cheese, fish and of course traditional halloumi, which is made from a mixture of goat's and sheep's milk and usually grilled.
Shopping: Paphos has a range of stores from tourist shops on the harbourside to quality furniture stores to large UK department stores.

USEFUL CONTACTS

>> Irish Embassy in Cyprus: 00357-2281 8183; nicosiaembassy@dfa. ie
>> Cypriot Embassy in Dublin: 01-676 3060; embassyofcyprusdub@eircom. net
>> Paphos Tourism: www. discoverpaphos. com
>> Cyprus Government: www. cyprus. gov. cy
>> Cyprus Mail: www. cyprus-mail. com
>> Cyprus Property Guide: www. cyprus-propertyguide. com
>> Insight magazine: www. insightpaphos. com
>> BuyAssociation: www. buyassociation. co. uk
>> My Overseas Property: www. myoverseasproperty. ie
>> Association of International Property Professionals: www. aipp. org. uk
>> Federation of Overseas Property Developers, Agents and Consultants: www. fopdac. com
>> BuySell Real Estate: www. buysellcyprus. com