During the early nineties Cyprus chose the technology of offshore cage culture to develop marine aquaculture, due to coastal land competition by tourism, concerns for environment and the lack of sheltered sites. Currently there are 8 sea cage farms (seabream and seabass), licensed for an annual production of 150 t. The farms are located 1-1.5 km offshore, spaced at 3 km intervals, in water depths ranging from 20-35 m. Of the main manufacturers the most commonly used cage is the circular 16 m-diameter 'PolarCirkel' type. The report provides information on the physicochemical environment, the supporting infrastructure, and the regulations for the establishment/operation of cage farms. Information is also provided on aquaculture production and on main constraints facing marine aquaculture development, i.e., the small size of the farms, the scarcity of available sites, the negative public perception of the environmental impact of aquaculture and the attitudes of fishermen towards cage farms.