Cyprus is an island in the Mediterranean Sea, south-east of the Greek borders. After Sicily and Sardinia, Cyprus is the third largest island in the Mediterranean Sea. Although the island is geographically in Asia it is politically a European country and is a member of the European Union.
Cyprus is politically stable, has a fast-growing economy, a high standard of living, well developed telecoms and infrastructure and is a member state of the EU. The high standards adhered to by the banking, legal and accountancy professions contribute to the country's growing and international reputation as a business centre in its own right.
Establishing a Cyprus offshore company also provides a convenient "foothold" for non-EU countries such as China, India and Japan to engage in trade with Europe and vice versa with no exchange restrictions and offering the benefit of the 19% EU VAT – Europe's lowest permissible rate.