The Republic of Cyprus is a sovereign state island with a presidential government system located in the Eastern Mediterranean. On 1 May 2004 the Republic joined the European Union. Tourism is one of the main sources of income for the country.

An offshore regime for International Business Companies was operational in the Republic of Cyprus after 1 January 1977 but it ceased to exist the moment the Republic entered the EU on May 01, 2004.

Cypriot companies are very attractive for investment and holding purposes and for an International Business, as the country has an attractive corporate tax rate of 12,5% - one of the lowest rate of corporate taxation nowadays in EU. In addition, Cyprus has an extensive network of double taxation treaties with regard to such types of income as royalties, interest and dividends.