Can only comment on a couple of points you've asked.

Wages have increased over the last couple of years in Cyprus, but 40000 euro's would be considered a very high wage, top management money. you should be able to rent a property with a pool for much less than 1700 euro's if you're willing to live in one of the villages between Larnaca and Lefkosia. You'll be in work in say 30 mins and on the beach in the same time. The only problem you may have driving into Lefkosia now is the amount of traffic on the roads. Cyprus has become a 3 or 4 car family, 250 used cars a week have been exported from U.K. to Cyprus since the end of 2006.

I have no idea as far as medical care costs, always paid for mine, but much cheaper than the U.K.

As far as living in Cyprus, it's definitely better if you can develop a good social circle....