Cyprus: Mediterranean enclave for upmarket expats One is a reduction of VAT from 17 per cent to 5 per cent for your first property in Cyprus and another is the abolition of the property transfer tax to zero from its past rate of up to 8 per cent. Initially short term, these measures have been extended until the end of 2012 and an extension into 2013 is widely predicted. Aphrodite Hills, Cyprus's only five-star integrated golf resort, has launched its final phase of new homes, Alexander Heights, featuring 68 hi-tech villas and apartments with sweeping views across the Mediterranean. Traditional exteriors are complemented by "smart" interiors including touch pad controls for everything from shutters and air conditioning through to music systems and underfloor heating. The first tranche of apartments and villas are priced from €609,000 to €2.8m for a five-bedroom villa and infinity pool. "A sterling purchase today of a €2.8m villa is cheaper by nearly £300,000 than it would have been 10 months ago," says Aphrodite Hills sales manager George Elias. Of the first 10 villas under construction, with a completion date of August 2013, eight have been sold, all to expat buyers. Pre-dating Alexander Heights and adjacent to it is Aphrodite Hills Theseus Village, where 10 unsold apartments remain from a total of 117. For those with less deep pockets, a two-bedroom unit with two massive terraces costs €395,000 or a one bedroom with 80sqm of living space is €270,000. There are at present 750 owners in Aphrodite Hills of which 60 per cent are British, 15 per cent Cypriot, 10 per cent Russian and the rest other nationalities (Swiss, Austrian, German, Middle Eastern, South African). To date 80 per cent have bought for lifestyle, with the remainder for investment. Aphrodite Hills property sales were robust last year. "To date, sales have outstripped 2011, which bodes well for an outstanding 2012," said Loucas Kitrou, Aphrodite Hills real estate manager. The full range of resort amenities includes an equestrian centre, nature trails, Annabel Croft tennis academy, kids" club, spa and a village square that hosts musical evenings and also features a corner shop, bank, restaurants and round-the-clock medical clinic. Central to the resort's 18-hole championship golf course is a five-star InterContinental Hotel.