As I said I'm not overly familiar with Paphos or Limassol which is a much bigger city, as I have never lived there but in general any place you decide to live in, if its near the coast there will be a lot of tourists around, but that's not necessarily a bad thing, as the tourists bring a good vibe to the place.
As has been said before, if you are thinking of moving here permanently I would rent first rather than buying, to get a feel for the place. Property transactions here can be tricky as in some places there are issues regarding title deeds, so buyer beware. We live now for the last few years in Larnaca...close to the town centre and 5 minutes to beach. Initially we lived for 1 year in Nicosia which is the capital, and is a busy enough spot, with crazy driver with absolutely no patience. Nicosia while it has its charms and a lot of history is essentially a business and commercial city, and it wasn't really for us to settle permanently, as its to far to the sea. Also rents and properties are generally more expensive in Nicosia. We initially rented an apartment on a month to month basis until we found a more suitable home to rent.
When we moved to Larnaca, again we rented on a month to month basis until we found a very nice 2 bed apartment in a nice complex for €500 a month. about two years ago we started looking to buy a place and found a very nice house near the centre and near the beach.
I found that buying big products like a house or a car, the Cypriots are hard to deal with, its not like back home where you can haggle and make a low ball offer and maybe meet them in the middle, they don't give much leeway on price, which doesn't make sense to me. I offered 1 builder €160,000 house for a 4 bedroomed new house outside the city in a great location, and the asking price was €170,000 he wouldn't budge, it was 170 or nothing, that was 4 years ago, and I pass the houses regularly and they are unfinished unsold and derelict.
Similarly when buying a car, I was buying a brand new golf two years ago from a VW main dealer in Larnaka, usually in Ireland you can expect up to 10% discount off a new car when paying cash, but here they will let you walk out the door, rather than give a decent discount, maybe they will give you about €500 discount max. Yes the price is the price, however the price of new cars here are much cheaper than at home, so there is good value, however I found the price of oldish second hand cars to be pretty expensive. Car tax is cheap maybe €50 per year, car insurance about €500 per annum.
The general cost of living isn't any cheaper than at home in my opinion, groceries and clothes are about the same price as at home, if not even dearer, but eating out and beer and wine are cheap, and there are excellent restaurants. Electricity and Internet is about the same as at home, and the service is good.
I find the people to be easy going and generally friendly, even more friendly if they think you will buy something from them. There isn't really a big pub culture here more a coffee shop culture, peoples Saturday nights are spent chatting in one of the thousands of coffee shops everywhere.
Needless to say the weather is beautiful, with July and August the hottest, actually a bit to hot if I'm honest, September and October are the nicest months for me, you wont survive over here without air conditioning in your home and your car. Also the winters can be quite cold and the insulation in the homes is usually non existent.
We love the Larnaka area, where there is a nice laid back vibe and a good mix of tourists integrating with the locals, and plenty of ex-pats around. The town has many attractions and a good history, and its a nice laid back place to live. All the regular high street supermarkets and clothing outlets are here as is most European countries.
Finally if your missing home, there are many expats and British and Irish pubs everywhere, with Karaoke's and pub quizzes, if that's your thing, Incidentally a pint of Carlsberg in my local is €1.80. There are also lots of greasy spoons where you can get your full English every morning and add to your cholesterol levels.