| From Propertywire.com: The Cyprus property market is in recession with sales down 40% and the second homes and holiday homes sector hardest hit. A lack of property investment from the UK is regarded as one reason for the fall, especially in around Paphos, one of the most popular areas for foreign property investors.
The decline in property sales will affect the island's revenue as it means a reduction in Capital Gains Tax. The country's finance minster has announced that it may have to take measures to correct this. 'The downturn in the market is expected to affect public revenues. The government is taking this into account and if recession continues it will take additional measures,' said Charilaos Stavrakis. He said the income from capital gains tax had fallen by 18% this year..... Full Article: Source
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