Cyprus is situated in the eastern Mediterranean at the cross roads of three continents- Europe, Asia and Africa covering an area of 9251 sq.km.. The Republic of Cyprus was established in 1960, after gaining its independence as a British colony. Since 1974, however, a de facto division of the island has existed, with the Greek Cypriot community controlling 63% of the territory, and the Turkish Cypriots, backed by Turkish Army Units, 37%. It is a member of the Commonwealth and the European Union since 2004. It is a prosperous country with is annual Gross Domestic Product rising to an average of Euro 18,810 per capita. The economy is dominated by professional services, with the tourist and the financial services industries being the strongest over the years.

The Cyprus government has worked hard to create a favorable tax regime while at the same time maintaining a normal-looking domestic economy, albeit with rates of taxation, which are the most beneficial in Europe and very low by international standards. The success of this program is attested by the high numbers of International Business Companies (IBC) (over 50,000) registered in Cyprus since 1975.