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Geography

Cyprus is the third largest island in the Mediterranean Sea (after Sicily and Sardinia) situated at the hub of 3 continents, Europe, Asia and Africa. Cyprus is approximately 100 kilometres west of Syria, 370 kilometres north of Egypt and 70 kilometres south of Turkey.  Its 9251 square kilometres encompass pine forested mountains as well as some of Europe's cleanest beaches.  The island enjoys the best type of Mediterranean climate with abundant sunshine even in winter. The island provides a perfect climate for summer holidays. It is estimated that there are more than 300 sunny days each year. The sun is a resilient force in Cyprus, shining high and bright enough to keep the sea warm for comfortable swimming from early May all the way through October. The average annual temperature for the island as a whole is about 20° C ranging from as low as 10° C in January and going up to 40° C in August.

Out of a total of 867.600 inhabitants the estimated composition of the population by community at the end of 2006 was approximately 76% Greek Cypriots, 12% Turkish Cypriots, 12% Foreign residents Source: Cyprus Statistical Service, Demographic Report The total population figures do not include illegal settlers from Turkey, the number of which most probably is in the range of 150-200 thousands.

Language

The language of the Greek Cypriot community is Greek and the community adheres to the Autocephalous Greek Orthodox Church of Cyprus. The language of the Turkish Cypriot community is Turkish and the community adheres to Islam. The religious groups of Armenians, Maronites and Latins, in accordance with the 1960 constitution, opted to belong to the Greek Cypriot community. 

Capital City

The capital of the island is Nicosia with a population of almost 308.000 in the sector controlled by the government of the Republic of Cyprus. It is situated roughly in the centre of the island and is the seat of government as well as the main business centre. The 1974 Turkish invasion and occupation of 36 % of the island's territory literally cut the capital in half. After the fall of the Berlin Wall, Nicosia remains the only militarily divided capital in Europe. Apart from the capital, Nicosia, all other major cities are located on the coast. Limassol is the second largest city and the island's biggest port. Larnaca and Pafos, which are popular holiday resorts, are the third and fourth largest cities, respectively.  

Government 

Cyprus is an independent sovereign Republic with a presidential system of government. Cyprus is a politically stable democracy with a system of government based on that of other western democracies where human rights, political pluralism and private property are safeguarded. Under the 1960 Constitution, executive power is exercised by the President of the Republic, for a five-year term of office. The President exercises executive power through a Council of Ministers appointed by him.  On May 1st 2004, Cyprus became a full member of the EU and is also a member of the United Nations, the Commonwealth, the Organisation for Security and Cooperation "OECD", and many other international Organisations.

The Legal System

The legislative authority in the Republic is exercised by the House of Representatives whose members are elected to office for a period of five years.   The administration of justice is exercised by the island’s separate and independent Judiciary. The legal system in Cyprus is closely connected with the legal system of the United Kingdom, and all statutes regulating business matters and procedures are based essentially on English law. It is important to emphasise also the fact that most laws are translated into the English language. Under the 1960 Constitution and other legislation in force, the following judicial institutions have been established: The Supreme Court of the Republic, The Assize Courts, District Courts, Military Court, Industrial Disputes Court, Rent Control Courts and Family Courts. The Supreme Court is the final appellate court in the Republic and the final adjudicator in matters of constitutional and administrative law.  

The Tax System

The tax law of Cyprus, as reformed in 2002 is probably the most modern, effective and simple tax system in the EU. In addition to this, it conforms fully to the EU and OECD regulations. Opportunities to reduce the income tax burden are numerous, for individuals as well as for domestic and international businesses.  The extensive network of tax treaties, in conjunction with the advantages of membership in the European Union and the full acceptance by Cyprus of the European Union Code of Conduct and the Campaign against Harmful Tax Competition has added a lot to the reputation of Cyprus as having a very competitive but internationally respected tax legislation. This has created an excellent ground for tax professionals to establish Cyprus as a major financial centre within the European Union, developing Cyprus from an alleged tax haven country into a Country that has a modern and competitive tax environment.