British nationals living in Cyprus account for 1.5 per cent of the total population,with British retirees able to draw their pension without paying UK withholding tax,at a flat rate of 5 per cent.The most popular destination for tourists and homebuyers is Paphos, but ‘up andcoming’ areas include Polis and Larnaca, both of which enjoy lower prices thanPaphoswith high capital growth expected as tourists look further a field towardstraditional Cypriot villages.We advise Britons against buying property in the North for the time being due tothe legal situation.