There is now a smoking ban in public places from January 2010 here in Cyprus so you won't be able to smoke in bars and restaurants, but you are fine smoking outdoors and many bars have now built outdoor bars with cover for smokers.
In hillside villages, you will find that many coffee shops and small bars ignore the no smoking rule as most of their customers are men who smoke heavily. If they didn't let them light up, they would have no customers!
There is a heavy fine for both the smoker AND the owner of the restaurant/bar etc. if a person is caught smoking by the police. In practice, however, I don't think many people report others who smoke. I have personally directed a complaint at someone (a British man) who lit up in a restaurant while we were eating and refused to put his cigarette out. He ignored us and verbally abused me. I tend not to eat out in places where i know the owners and clientele still smoke even though it is banned.
