Cyprus is a presidential republic and EU member since 2004, with an economy that combines services (particularly financial and professional services), tourism, and shipping. As a strategically located Mediterranean island, it serves as a business hub between Europe, the Middle East, and Africa. The country uses the euro and is known for its favorable tax regime, which has attracted international businesses and investment funds. Key economic sectors include financial services, tourism, shipping management, real estate, and increasingly, technology services. Despite recovering from a severe banking crisis in 2013, Cyprus faces ongoing challenges with its division between the internationally recognized Republic of Cyprus and the Turkish-occupied northern part, as well as the need to diversify its economy beyond traditional sectors.