Cyprus, officially termed the Republic of Cyprus, is a Euro-Asian nation strategically positioned at the core of the eastern Mediterranean Sea. It is located south of Turkey and west of Syria and Lebanon. Cyprus is the third-largest island in the Mediterranean, noted for its substantial tourism industry and rich cultural heritage. A former British colony, it gained independence in 1960 and subsequently joined the Commonwealth in 1961.

The legal framework governing corporations in Cyprus is the Cyprus Companies Law, which is heavily influenced by British legislation dating back to 1948.

The ability to obtain an intra-community VAT number with relative ease, along with a corporate profit tax rate of 12.5%, makes Cyprus an appealing onshore jurisdiction for foreign investors seeking to engage in international business operations.

With its favorable tax regime, Cyprus has gained a reputation as a leading offshore destination for holding companies, international trade, and service-oriented businesses. Additionally, the country’s regulatory environment provides a stable and predictable setting for companies, with a legal system rooted in British common law, ensuring a clear and reliable structure for corporate governance and dispute resolution. This combination of factors contributes to Cyprus’s attractiveness for businesses seeking both tax efficiency and legal stability within a European Union framework.