There is no doubt that since Greece started to fall because of the economical crisis, many EU countries started to worry about their future. The Euro is no longer stable and analysts are predicting dark times.
One of the measures politicians took was to raise the Value Added Tax (VAT) and in some countries (like Hungary) they set it to 27% which is way too high. However, other countries preferred to keep their VAT as low as possible, Cyprus from example has it as low as 10%.
That is why many business owners prefer to move their businesses in countries like Cyprus. Cyprus company formation is a website where you can find a lot of information about creating a company in Cyprus.
Highly recommend it!