The city of Paphos, located on the western coast of Cyprus, has been experiencing a surge in real estate prices in recent years. This is due to a combination of factors, including a strong economy, attractive tax incentives, and an influx of foreign investment.
One of the main drivers of the high property prices in Paphos is the city's popularity among tourists and retirees. Paphos is known for its mild climate, beautiful beaches, and rich history, which make it a desirable location for vacation homes and retirement properties. As a result, demand for real estate in the area has increased, driving up prices.
In addition, the Cypriot government has implemented a number of tax incentives to attract foreign investment in the real estate market. For example, non-resident property owners are not subject to capital gains tax when they sell their properties, and there is no inheritance tax on property passed on to family members. These incentives have made Paphos an attractive destination for foreign buyers, further driving up prices.
Finally, the strong economy of Cyprus has contributed to the high property prices in Paphos. The country has experienced steady economic growth in recent years, and this has increased the purchasing power of local buyers. As a result, competition for properties in desirable locations such as Paphos has intensified, leading to higher prices.
Overall, the real estate market in Paphos is one of the most expensive in Cyprus. While this may make it difficult for some buyers to afford properties in the city, it is a reflection of the strong demand for real estate in this desirable location.