Area: 35,980 sq km

Population: 22,858,872 (July 2007 est.)

Capital: Taipei

Government: Multiparty democracy

Ethnic groups: Taiwanese (including Hakka) 84%, mainland Chinese 14%, indigenous 2%

Main languages: Mandarin Chinese (official), Taiwanese (Min), Hakka dialects

Religion: Buddhist and Taoist 93%, Christian 4.5%, other 2.5%

Time: GMT/UTC +8

The island of Taiwan, formerly known as Formosa, is located in Eastern Asia, to the southeast of China and to the north of the Philippines. It is surrounded by the South China Sea, the Taiwan Strait, the East China Sea and the Philippine Sea. Although the country is very densely populated, and has a number of large cities, around 70% of the land area is accounted for by the central mountain range, and there are many lush forested areas.

The country now known as Taiwan, and referred to by its government as the Republic of China, was created in 1949 when senior members of the Chinese Nationalist Party established a government there after fleeing China following the Communist takeover of the country. This party remained in power in Taiwan until 2000 when the Democratic Progressive Party won the elections. This party has maintained a fragile hold over the country since then, but some predict that the Nationalist party will regain power in the 2008 elections.

Taiwan has an uneasy relationship with China, whose government continues to press for reunification and refuses to recognize Taiwan as an independent state. Taiwan has never formally been recognized as a sovereign state by the international community, although in practice it has operated as an independent nation for many decades. The population is reportedly split fairly equally between those who are in favour of maintaining the status quo, those who want formal independence for Taiwan and those who support reunification with China.

After its formation in 1949, Taiwan underwent rapid industrialisation and developed a thriving capitalist economy. Taiwan is a major trading partner of China and of many western countries, and has built its economy on its strong export market. It has experienced steady economic growth nearly ever year and achieved a growth rate of 4.3% in 2006.

There are a fairly large number of expatriates living in Taipei, the capital, and in Taiwan's other main cities, including the employees of multinational firms, many English language teachers and foreigners married to Taiwan nationals. In 2002 it was estimated that there were more than 405,000 foreign residents in Taiwan, including about 17,000 white-collar workers.

Despite some political instability, everyday life in Taiwan is reportedly very peaceful and the country offers a high quality of life in many respects. Although the cost of living is a little higher than in many other Asian countries, salaries are relatively good and taxes are low. The people are friendly and the crime rate is very low. Taipei itself is a bustling, modern city and business centre, with a good range of entertainment facilities.

The main difficulties for expats living in Taiwan seem to be language difficulties, the slow and complex bureaucracy, and concerns about the air and water pollution that the country is experiencing.