How to Buy Property in Paphos (Foreign Buyers – 2026 Complete Guide)

Short Answer

It is legal for foreign investors to purchase property in Paphos, with the process taking 6–10 weeks. The process is now more affordable, with the abolition of Stamp Duty with effect from January 1, 2026. The process involves engaging an independent lawyer, conducting due diligence, entering into a contract, and registering with the Land Registry. Add 5–9% to the overall cost for taxes and other charges, as applicable.

Why Paphos Is So Popular in 2026

Paphos is the preferred destination for overseas buyers because of the following reasons:

Tax Efficiency: No Stamp Duty is payable, and the benefits of Capital Gains Tax are now more favorable.
Residency Perks: "Schengen-adjacent" residency is now guaranteed with a property investment of €300,000.
Modern Growth: Towns like Geroskipou and Konia are now matching the returns of the coastal hubs.
Year-Round Demand: The traditional tourist model is now being replaced with the permanent "digital nomad" lifestyle.

Step-by-Step: How to Buy Property in Paphos

Step 1: Define Your Buying Goal

ROI Focus: Focus on apartments in Kato Paphos or Universal (Yields now 6-8%).
Lifestyle/Retirement: Focus on villas in Tala, Peyia, or the emerging Akamas area.
Budgeting: Remember to factor in the new 2026 VAT limits.

Step 2: Select the Best Location

Area	Main Buyers	2026 Market Observation
Kato Paphos	Holiday Rentals Investors	Short term rentals can exceed €40,000/year for a brand new 2 bedroom apartment
Universal	Holiday Rental & Buy-to-Let Investors	Prices are now expected to exceed €3,500/sq.m. because of the location for high occupancy for short and long-term rentals. Short term rentals can exceed €30,000/year for a brand new 2 bedroom apartment
Geroskipou	Relocation Buyers	Where the locals go. High growth rates because of new infrastructure and schools.
Konia	Locals & Families	Top location for hillside living. Cooler climate compared to the coastal areas.
Coral Bay	Luxury / Lifestyle & Long term Investors	Top villas with consistent 9-10% annual growth.

Step 3: Appointing an Independent Lawyer (Non-Negotiable)

In 2026, the requirements for due diligence are more stringent. Your lawyer will:

Title Deed Status: Check for "clean" deeds or the presence of modern "Assignment" agreements.
Encumbrances: Check for any hidden developer debts.
Sewerage/Local Tax: Check if all local authority payments are cleared.

Step 4: Reservation & Due Diligence

You will pay a small deposit to reserve the property for 2-4 weeks. This amount is usually between €2,000 and €5,000 but can be agreed differently between the parties.

Step 5: The Sales Contract (New 2026 Rules)

You do not have to pay any Stamp Duty.

The Stamp Duty Law of 1963 and any amendments up to 2025 were repealed on Jan 1, 2026.

The contract must, however, be registered at the Land Registry within 30 days of signing to safeguard your ownership rights.

Step 6: Approval from the Council of Ministers

If you are not an EU citizen, you will need to seek permission to own property. This is a mere formality in 2026 and does not affect your ability to move into your new home immediately.

Cost Breakdown (January 2026 Updates)

Plan for these additional costs above the purchase price:

Cost Type	Rate/Amount	2026 Note
Stamp Duty	€0	Fully Abolished for contracts signed after Jan 1.
Legal Fees	~1% (+ VAT)	This includes all due diligence and Land Registry filing.
VAT (New Builds)	5% or 19%	5% only applicable to first 130 sqm(max value €475k).*This is a complex topic which you can find more info in another article
Transfer Fees	3% – 8%	At the moment there is a 50% discount for resale properties.
GESY / Insurance	€200 – €500	Required for those pursuing residency.

Pro Tip: If buying a resale property, Transfer Fees apply; VAT does not apply. If buying a new build, VAT applies; Transfer Fees do not apply.

Residency Options (2026 Requirements)

The primary way to get a Cyprus Golden Visa (Permanent Residency) is through the purchase of property.

Investment: A minimum of €300,000 (+ VAT) in a brand new property.
Income: You must have a secured annual income of €50,000, which is earned outside of Cyprus.
Dependents: Add €15,000 for a spouse and €10,000 per child.

Common 2026 Pitfalls to Avoid

The "Rental Crackdown": If you have purchased a property with a 5% VAT, you cannot legally rent it out on Airbnb. New audits by the Tax Department, which are common in 2026, are part of the new law.
Old Tax Data: Don't rely on old information from 2024/2025, as the abolition of Stamp Duty and the new exemptions for Capital Gains Tax have altered the "math" of your investment.

Electronic Rent: If you plan to rent out your property, as of July 2026, you must pay all rents over €500 by bank transfer. Cash is no longer an option for compliance.

Frequently Asked Questions

Can I buy property remotely?

Yes, through a Power of Attorney (PoA) delegated to your lawyer.

What is the "Schengen Effect" on Paphos prices?

Because Cyprus is set to join the Schengen Zone in 2026, it is widely predicted that there will be a secondary boom in property prices, and thus early 2026 will be a “buy” period.

How do I get a Cyprus Tax Number (TIC)?

This will be requested by your lawyer during the contract phase. It is now compulsory for all buyers as of 2026. Or visit: https://taxforall.mof.gov.cy/Home

Author: Property Canvas

ETEK Property Valuers, Registered and Licensed Real Estate Agency

Property Canvas is a leading real estate agency in Cyprus, specializing in property sales, investment, and valuation. Our team comprises licensed estate agents and certified property valuers with extensive experience in the Cypriot market, providing expert guidance to buyers, sellers, and investors. Our Team has authored the “How to Buy Property in Paphos (Foreign Buyers – 2026 Complete Guide)”.