How to Open a Bank Account in Cyprus?

According to the latest S&P Global report, Cyprus has considerably strengthened its banking infrastructure, with notable improvements in banks’ credit ratings. On top of that, Cyprus also complies with the Eurozone’s and European Union’s (EU) banking standards. The country’s banking sector is highly regulated and operates under the direct oversight of the European Central Bank (ECB).

The jurisdiction is a pioneer in international banking, offering a comprehensive range of services for individual and corporate clients. Are you looking to open a bank account in Cyprus? Learn about the benefits and process of opening an account in Cyprus.

Why Should You Open a Bank Account in Cyprus?

Opening a bank account in Cyprus for foreigners can be a clever strategy that opens pathways to access Europe's strong banking infrastructure:

1. Benefit from Non-Dom Regime

Cyprus’s non-dom (non-domicile) regime is recognized across the globe. It provides significant tax benefits to non-residents. Thus, as a non-resident of the country, you can enjoy tax benefits, such as a 17-year tax exemption on worldwide passive income. Aside from this, you are also exempt from 100% capital gains tax on the sale of non-Cypriot assets.

2. EU Guaranteed Protection

A major benefit of opening a bank account in Cyprus as a foreigner is the EU-guaranteed protection. The deposits in the bank account are protected by the harmonized European Deposit Guarantee Scheme up to €100,000 per bank.

3. Strong Banking Infrastructure

According to the S&P Global report, Cyprus has strengthened its banking infrastructure with up-to-date technical capabilities. Moreover, the Cyprus central bank has also considerably reduced its non-performing loans (NPLs), which in turn improved its credit rating. Thus, opening a bank account in Cyprus for a foreigner is an ideal move to access strong international banking.

4. Gateway to the Eurozone and SEPA

You can open a bank account in Cyprus and access the Single Euro Payment Area (SEPA). That means you can transfer your money anywhere within the Eurozone without additional charges. Aside from this, you can also access SEPA Instant, which enables you to transfer funds up to €100,000 to any of the 36 SEPA countries instantly.

5. Remote Opening

You can also open a Cyprus bank account remotely. That means you can open an account from the comfort of your home and transact globally effortlessly.

What are the Types of Bank Accounts in Cyprus?

Cyprus has numerous types of accounts that cater to the requirements of both locals and non-residents. Here’s a quick overview:

1. Personal Bank Account

This is a mandated right under the EU Payment Accounts Directive. Every bank in Cyprus must offer this type of account to any legal resident. It is designed for financial inclusion, meaning even if you have a bad credit score or no job, the bank generally cannot refuse you an account.

2. Personal Savings Account

Unlike other countries, opening a personal savings account is not mandatory. It is a financial product that people can opt for to enhance their savings. This type of account has a withdrawal limit to encourage savings.  

3. Corporate Bank Account

A Cyprus business bank account is popular for corporate firms. A corporate bank account provides access to additional features, such as higher fund transfer limits. However, onboarding is rigorous as it requires strict AML compliance.

4. Fixed Term Deposit Account

A fixed-term deposit account in Cyprus is a secure, interest-bearing savings account in which funds are deposited for a set period at a fixed interest rate. It is also known as a term deposit account. These accounts typically prohibit withdrawals or further deposits during the fixed term.

5. Escrow Account

Escrow accounts are different from standard bank accounts. These are specialized accounts for holding funds or assets via a neutral third party until pre-agreed contractual conditions are met by buyer and seller. These types of accounts are commonly used for real estate-related transactions.

6. Multi-currency Account

Cyprus banks do not offer separate multi-currency bank accounts. However, you can open a bank account in Cyprus and opt for the foreign currency sub-account model. In the sub-account model, you can choose denominations for your fund in numerous major currencies, such as JPY, CHF, USD, CAD, and so on. This facilitates easier cross-border transactions without currency conversion.

Documents Required to Open a Bank Account in Cyprus

The following are the key documents that you must have to open a bank account:

• Valid passport or national ID
• Proof of residential address (outside Cyprus)
• Bank reference letter
• Proof of source of funds/income
• Detailed CV or professional information
• Completed bank application forms

What are the Steps to Open a Bank Account in Cyprus?

You can open a bank account in Cyprus by following the steps mentioned below:

Step 1: Select a Bank

Choose a bank that handles non-resident accounts. There are numerous banks, such as Bank of Cyprus, Hellenic Bank, and Alpha Bank.

Step 2: Gather Required Documents

Prepare a notarized or apostilled document and submit it to the bank. Key documents such as identification-related papers, proof of address, proof of source of funds, bank reference letter, and so on.

Moreover, you may also require a certificate of incorporation, Memorandum of Association, Articles of Association, and a certificate of directors/shareholders to open a Cyprus business bank account.

Step 3: Complete the Application Form

Fill out the bank's application form, which includes providing a clear, detailed purpose for opening a bank account in Cyprus for foreigners and expected annual deposits.

Step 4: Submit the Documents

You can submit the documents in person or remotely. Moreover, you can also use the bank's online services.

How Can Business Setup Worldwide (BSW) Help?

Choosing to open a bank account in Cyprus is a wise choice as it provides access to SEPA and Europe’s guaranteed protection scheme. Moreover, you can also trade internationally across major jurisdictions without the hassle of currency conversion. However, meeting the rigorous AML compliance and documentation requirements can be tedious. This is where seeking guidance from consultants such as BSW comes in. Contact us to know more!