Geographically, Ayia Napa lies near Cape Greco at the eastern part of Cyprus, just south of Famagusta and forms part of a larger area known as Kokkinochoria (a name derived from the red colour of its soil).

It is a town of Famagusta District. Ayia Napa is about 8 Kilometres (5 miles) away from Protaras, a town that has recently seen similar development, but still manages to remain low-key and remains more favorable for families and Cypriot locals.