How to open a bank account in Cyprus: procedure, documents, best banks and innovations of 2023

Whatever the purpose of your visit to the island, be it living, working, or doing business, you will need to open a bank account in Cyprus. And this is a good decision, as the banking system of Cyprus is one of the most reliable. Let’s look at the advantages, the opening procedure, the list of documents, and the rules for opening a bank account in Cyprus for individuals and companies.

The red thread of Cyprus' entire policy is creating a sound banking system, a developed economy, a broad financial sector, and attractive conditions for foreign investment. This policy has resulted in a growing influx of relocates from all over the world who come to the island to live, educate their children, open businesses, and relocate companies from other countries. Whichever of these cases is yours, you will, in any case, face the question of opening a bank account in Cyprus.

Today, the Republic’s banking system is developing rapidly and is considered one of the most reliable. Cyprus is not offshore but offers a very mild tax climate and favorable economic conditions, facilitating business development on the island. And the banking system has to meet the declared level and provide its clients with security.

Therefore, nowadays, opening a bank account in Cyprus is not as easy as it used to be — the requirements for clients have become stricter, the number of required documents has increased, as well as the need to prove the legality of the origin of your funds through the KYC and due diligence procedures.

To facilitate and speed up the account opening procedure, you must know its nuances and correctly collect the documents. SPM specialists will help you to do it and guide you from the beginning to the end of the process. In the meantime, we have prepared expert material on how to open a bank account in Cyprus.

What can a bank account be opened in Cyprus, and for what purposes?

Depending on their purpose and function, there are several types of bank accounts. Some of the most common types of bank accounts include:

• Current account — this is the most common type of bank account used for everyday transactions such as paying bills and buying goods and services.
• Savings account — you can deposit money to accumulate savings. Unlike the current version, a savings account is not for day-to-day transactions and may have restrictions on withdrawals. Usually, such an account contains money that is not needed in the near future.
• A deposit account is an account into which a large amount of money can be deposited for a certain period to receive a higher interest rate than a savings account.
• Credit account — an account to which the bank can issue a loan or overdraft under certain conditions. The customer must pay interest for the use of credit funds.
• E-payment account — used for making electronic payments and transfers, allows you to quickly and conveniently make online transactions, such as paying for goods and services over the Internet.
• Multi-currency account — here, you can keep money in different currencies. It is convenient for those who do business with foreign companies or travel abroad.
• The investment account is used for long-term deposits and must always contain a fixed minimum balance on which interest is accrued. And also allows you to invest money in various financial instruments such as stocks, bonds, and funds.
• Account for trading in financial markets — is needed for trading in financial markets such as stock exchanges and Forex markets.
• Business account — used by businesses and companies to run their business operations. It may have unique functions and features, such as issuing checks or getting credit.

Which account should I choose for an individual?

For an individual wishing to open a bank account in Cyprus, there are several options, depending on the purpose of the account.

A current bank account is the most common type of account for individuals, which provides the ability to conduct transactions for bill payments, transfers, etc. Usually, to open a current account, it is necessary to provide documents proving identity and place of residence.

For personal use by individuals are also suitable:

• savings account;
• deposit account;
• credit card;
• debit card;
• multi-currency account;
• e-wallet.

Which account should I choose for a legal entity?

A company needs a corporate bank account to conduct its activities and financial transactions. Usually, this account is opened in a bank in the same country where the company is registered. Different types of corporate bank accounts may be required depending on the type of company and its activities.

In addition to those listed above, other types of bank accounts are also available for legal entities:

• Safe Deposit Box — allows you to safely store documents, valuables, and other essential materials in the bank.
• Escrow Account — used for temporarily storing funds, for example, in real estate or business transactions, when the parties are not ready to make a transfer until certain conditions are met.
• Merchant Account — allows the company to accept customer payments using bank cards.
• Foreign Currency Account — used to store and conduct transactions with foreign currency.
• International Account — allows legal entities to conduct international financial transactions such as transfers, currency conversion, etc.

The choice of a particular type of bank account depends on the needs and goals of the legal entity.

Every company needs a corporate bank account to receive customer payments and settle with suppliers and counterparties.

The main types of corporate bank accounts in Cyprus include:

• Accounts for receiving payments: used to receive payments from customers and partners of the company.
• Settlement accounts: used to pay suppliers to pay salaries and other settlements.
• Special Accounts: These are set up for specific operations, such as trading on the stock market or conducting international transactions.

The type of corporate bank account in Cyprus may depend on the company’s needs and business model. For example, for companies engaged in trading, an account for foreign exchange transactions, and for companies providing services — an account for payment processing. In addition, it is possible to open a multifunctional corporate account in Cyprus that allows various operations from a single account, including foreign exchange transactions, transfers, and payment processing.

The procedure for opening an account in a bank in Cyprus

Since Cyprus is not an offshore and fights against money laundering, opening a bank account has become more complicated — now you have to prove the legitimacy of your sources of income, go through an interview and provide a much longer list of documents. And if European citizens can do it easier and there are fewer requirements for them, the residents of third countries will have to prove their trustworthiness.

The procedure for opening a bank account in Cyprus may vary slightly depending on the selected bank, account type, and currency. However, in general terms, it may look as follows:

• Choice of bank and type of account: Many banks in Cyprus offer different services and types of accounts. It would be best if you choose according to your needs and requirements.
• Applying for an account: Once you have chosen a bank and type of account, you need to apply for an account. Usually, you can use it at the bank’s office or online at the bank’s website.
• Providing necessary documents: Depending on the bank and type of account, you may need to provide the following documents:
• Passport or another identification document;
• Documents proving residence (e.g., rental agreement and utility bills);
• Documents confirming the origin of funds (e.g., tax returns, contracts, etc.).
• Signing the agreement: After you submit the required documents, you will be asked to sign an agreement to open an account. Usually, the contract contains information about the rules of using the account, commissions, and rates.
• Making an initial deposit: To open an account in Cyprus, you usually have to make an initial deposit. The deposit amount may vary depending on the bank and your account type.
• Getting bank details: After signing the contract and making the initial deposit, you will be given bank details that you can use for banking transactions.

Please note that opening an account with a bank in Cyprus may take some time, so it is recommended to apply in advance and have enough time to go through all necessary procedures.

Documents for opening a personal account of a private person

To open a bank account in Cyprus, an individual must be at least 18 years old, and the following documents will be required:

• A passport or other form of identification, bearing a photograph and signature, valid at the time of account opening and expiring not earlier than six months. Only a valid passport is required for EU citizens, and a visa or residency permit to Cyprus is also required for non-EU citizens.
• Bank application form and CV. The form may vary from institution to institution.
• Application for account opening.
• Documents proving your place of residence, such as a rental agreement, title deed if you purchased a property, and recent utility bills for the last 3 months, but no older than that time frame.
• Documents confirming the origin of the funds to be transferred to the account. Tax returns, contracts, certificates of inheritance, etc., can be submitted.
• Some banks may require a local recommendation from another bank or lawyer.
• Information about the purpose for which you intend to use the bank account in Cyprus.
• Information about existing bank accounts and/or credit cards.
• Account statements from previous banks for the past six months.
• Pay slip (certificate from your employer).
• If you do not speak English, you may need to have your documents translated into English.

Please note that the list of required documents may vary depending on the bank where you will open an account and on the requirements of the Cypriot authorities.

Documents for opening a corporate account

The following documents are usually required to open a corporate account in Cyprus:

• Bank questionnaire, your resume, and application for account opening.
• Company constituent documents: these can be the articles of association or the company formation agreement, the company formation notice, documents confirming the right to conduct business, etc.
• Company registration certificate: a document confirming the company’s registration in Cyprus.
• Full name of the company, the address of the legal entity, and telephone numbers.
• Details of directors and secretary.
• Proof of registered office (e.g., lease agreement or utility bills).
• Account opening agreement in Cypriot bank form.
• Signature specimen card of the authorized representative of the company.
• Company Tax Number.
• A detailed business description and sample contracts with customers and partners.
• Certificate from the bank in the country of residence on the existence of a bank account.
• Document confirming the identity of the company’s authorized representative: it can be a passport or other identity document.
• Documents confirming the place of residence of the authorized representative of the company: utility bill or other documents confirming the place of residence.
• Documents confirming the origin of funds: accounting statements, tax declarations, contracts, etc.
• Documents certifying the authority of the person signing the agreement to open an account on behalf of the company (for example, a power of attorney issued by an authorized person).

In addition, you need to visit a bank office in person or conduct a video interview with a bank employee.

Which bank in Cyprus to choose?

The choice of a bank in Cyprus depends on many factors, such as your banking needs, the size of your business or capital, as well as the reputation and reliability of the bank.

Several major banks in Cyprus provide various banking services to individuals and businesses. Some of them include the following:

• Bank of Cyprus — the largest bank in Cyprus, offering a wide range of banking services to individuals and legal entities.
• Hellenic Bank — the second largest bank in Cyprus also offers a wide range of banking services.
• AstroBank — a medium-sized bank in Cyprus that specializes in providing services to legal entities. Took over all assets and liabilities from RCB Bank, which recently ceased operations.
• Ancoria Bank — a small bank in Cyprus also provides services to individuals and legal entities.
• Eurobank Cyprus — has many prestigious international awards and is recognized as the bank with the best service and customer experience.
• Ecommpay and Unlimint — the most in-demand payment platforms and FinTech companies for IT businesses.

When choosing a bank in Cyprus, it is essential to check its reliability and the availability of the banking services you need, as well as to compare interest rates and other conditions of services provided by different banks to choose the most suitable option for you.

Now let’s take a closer look at each bank’s specifics and features.

Bank of Cyprus

The largest bank in Cyprus and one of the largest financial institutions in the Middle East and North Africa. The bank was founded in 1899 and had a long history in Cypriot banking. It provides a wide range of banking products and services, including savings and current accounts, credit cards, mortgage and business loans, investment and financial advisory, asset management, etc.

It is a member of the European Central Banking System, the European Banking Council, and the European Banking Association. It is actively involved in the Cypriot banking sector, providing competitive banking services to individuals and businesses.

Bank of Cyprus is also actively involved in the domestic market of Cyprus, financing local businesses, developing small businesses, and investing in various sectors of the economy, such as tourism, agriculture, industry, real estate, and others.

One of the features of the Bank of Cyprus is the presence of a vast network of branches across the island, which provides ease of use of banking services to residents of Cyprus and tourists. The bank also has a highly qualified staff that can provide professional assistance in choosing the most appropriate banking products and services.

It is important to note that the Bank of Cyprus is a stable and reliable bank with a long history and a solid reputation in the market. It also has high creditworthiness, confirmed by major international ratings agencies such as Moody’s, Fitch, and Standard & Poor’s ratings.

Hellenic Bank

The largest private bank in Cyprus. Provides a wide range of financial services to corporate and private clients, including deposits, loans, bank cards, mortgages, investment products, and more.

Among the key features of the Hellenic Bank are:

• Customer service — the bank has a long experience in the financial services market and strives to provide its customers with the highest level of service.
• Products and services — various products and services are available, tailored to all customer needs. Liquidity management, lending, trade finance, international payment services, etc., are public for legal entities. For individuals, the bank offers deposits, loans, debit and credit cards, mortgages, investment products, etc.
• Innovation — Hellenic Bank is actively developing its technological base, offering customers convenient and modern tools to manage their finances. The Bank also launches new products and services based on the latest trends and market requirements.
• Loyalty — the Bank’s customer loyalty program provides various privileges and discounts on products and services.
• Responsibility — Hellenic Bank adheres to high corporate responsibility and sustainable development standards, introducing social-environmental principles in its work and supporting various charity programs.

In general, Hellenic Bank provides a wide range of financial services and strives to provide customers with the highest level of service, combining traditional banking products with innovative technology.

AstroBank

A medium-sized bank in Cyprus with 14 branches, founded in 2008. It offers a wide range of banking products, particularly with a focus on legal entities.

Some of AstroBank’s features include:

• Internet banking — you can manage your accounts via Internet banking, facilitating financial management and fund transfer.
• Deposits — AstroBank offers different types of deposits, including term and irrevocable deposits with varying interest rates, allowing customers to choose the most suitable option for their needs.
• Loans — the bank offers loans for various purposes, including mortgages, car loans, education, etc. There are also loan restructuring services.
• Bank cards — AstroBank offers credit and debit cards, including Mastercard and Visa, which can be used for cash withdrawals and purchases in stores and online.
• Enterprise Services — a wide range of business services, including bank guarantees, export, and import financing, liquidity management, and more.
• Funds — asset management and investment services, including portfolio management, investment funds, and securities market trading.
• Cooperation — the Bank cooperates with international banks and financial institutions, which ensures the availability of global financial resources and the expansion of the geography of banking services.

The bank actively cooperates with international banks and financial institutions, allowing it to provide a high-quality service to its global corporate clients.

Ancoria Bank

A relatively young bank, founded in 2016. Although it is a relatively new entrant in the Cypriot banking market, it has quickly gained popularity due to its high reliability and competitive interest rates.

Essential services include bank account opening and maintenance, credit and loan origination, investment services, asset management, and payment and transfer processing services.

A unique feature of Ancoria Bank is its focus on personalized customer service, providing high-quality service and an individualized approach to each client.

Ancoria Bank also protects its clients' accounts and deposits by adhering to strict rules and regulatory requirements and using modern encryption and fraud protection technologies. The bank offers competitive interest rates on deposits and other products.

It is a reliable and innovative bank in Cyprus, offering its clients high-quality banking services combining security and convenience.

Eurobank Cyprus

Eurobank Cyprus (formerly Marfin Popular Bank) is one of the leading banks in Cyprus, providing a wide range of financial services. It was founded in 2007 as a subsidiary of the Greek Eurobank EFG. In 2012 the bank was renamed Eurobank Cyprus after its merger with Marfin Popular Bank.

The main specifications and features of Eurobank Cyprus:

• Offers a wide range of banking services for individuals, including various types of accounts, credit cards, mortgage and consumer loans, and asset management services.
• Provides comprehensive services for legal entities, including corporate account opening, lending, loan collateralization, liquidity management services, etc.
• Provides its clients with access to modern digital banking services, including a mobile app and online banking that allows them to manage their accounts, make payments and receive information about their finances online.
• It has a network of branches nationwide and also provides services through its online and mobile platforms.
• It is a stable and reliable bank in Cyprus. The bank is actively working to strengthen its position in the financial services market and ensures a high level of service to its customers.

In general, Eurobank Cyprus is a robust and reliable bank in Cyprus, which provides a wide range of financial services to individuals and businesses and actively uses modern digital technology for the convenience of its customers.

Ecommpay

A Cyprus-registered fintech company that provides online payment and e-commerce services. It was founded in 2012 and had offices in several countries, including Russia, the UK, Singapore, and Latvia.

Ecommpay provides its customers various online payment services, including credit card and e-payment processing, bank card issuance, online store support, and other e-commerce services. In addition, it provides its customers with risk management and free-advisory services.

One of the main features of Ecommpay is that the company has a technological platform for processing online payments. Because of this, it can provide its customers with high-quality services tailored to their individual needs.

Personalized solutions are also available to customers, allowing them to choose only the needed services. The company has many partners, including major banks and payment processors.

Unlimint

Unlimint (formerly CardPay) is a payment company registered in Cyprus in 2009. The company provides online payment solutions, including e-wallets, card processing, international transfers, and other services.

The main advantages of Unlimint are:

• Multiple Tools — a wide range of online payment tools and services, including numerous payment processing options, international transfers, currency exchanges, and e-wallets.
• Global presence — offices in different countries, allowing it to serve customers worldwide. The company has an international license to process payments, enabling it to work with clients from other countries.
• Security and reliability — the company complies with international data security standards and protects against fraud.

In general, Unlimint is a reliable payment provider with many years of experience in the global market. The company provides a wide range of tools and services for online payments, has a high level of security, and offers customized solutions for each client.

Why choose the banking system of Cyprus: advantages

In Cyprus, the banking system is considered one of the most reliable and stable in Europe and worldwide. Many advantages make the Cypriot banking system attractive to foreign individuals and companies:

• Reliability and stability: Cyprus' banking system is regulated by the Central Bank of Cyprus and meets high EU standards. Cyprus banks have a high degree of reliability and stability.
• Favorable tax climate: Cyprus is a tax haven for many foreign investors and companies as the country has some of the lowest taxes in Europe. Cyprus has a low tax burden, which makes the country attractive to businesses.
• Excellent banking services: Cypriot banks provide a wide range of services such as international transfers, credit, investment, internet banking, mobile banking, debit and credit cards, deposits, and safe deposit boxes. Banking services are available in English and other world languages, making them easy to use for foreign customers.
• Low initial fees: you can open an account with a bank in Cyprus without incurring high costs. Depending on the type of account and the bank, you may need to pay between 100 and 1000 Euros when you open an account. This is one of the advantages of Cyprus' banking system for foreign clients.
• Total client confidentiality: Cypriot banks do not disclose information about their clients to third parties without their consent or a court order. This is one of the advantages of this banking system for those who value their privacy and security.
• A liberal currency policy: banks do not restrict their customers from conducting foreign exchange transactions or conversions. You can open an account in any of the world’s currencies and freely transfer money between different accounts and countries. This will be interesting for those engaged in international business or investments.
• A wide choice of banks and account types: in Cyprus, there are many banks, each offering different services and account types. This allows clients to choose the best option.

However, the Cypriot banking system has also faced some problems in the past, such as:

• Shrinking the size of the banking sector after the 2013 crisis.
• Exchange of some funds for shares or interest freeze for accounts over 100 thousand euros.
• High level of problem loans and low profitability of banks.

The 2013 crisis caused severe problems as significant banks were on the verge of default due to their dependence on Greek debt. To get financial assistance from the European Union and the International Monetary Fund, Cyprus had to agree to a series of harsh measures, such as restructuring the banking system, tax increases, and spending cuts.

Since then, the Cypriot banking system has undergone significant changes and has strengthened its stability and reliability. Banks have increased their capital ratios, liquidity and asset quality, and efficiency and transparency. Cypriot banks also continue to support the country’s economic recovery and provide services to their customers.

Innovations of Cypriot banks to open an account in 2023

The banking system continues to evolve and update. Here are some innovations for opening an account in 2023:

• Banks in Cyprus offer the opportunity to apply for an account online without visiting a bank branch. To do this, you must create an account on your chosen bank’s website and attach copies of your passport, residence permit, certificate of property ownership, or utility bills for the past three months.
• The customer verification process has been simplified, and minimum account balance requirements have been lowered. For example, the Bank of Cyprus does not require a minimum balance to open a current or deposit account.
• Banks in Cyprus continue to offer favorable conditions for depositors and borrowers. For example, Eurobank Cyprus Ltd offers deposits with a yield of up to 1% per annum in euros and up to 2% in U.S. dollars. CDB (Cyprus Development Bank) provides loans secured by real estate on the island or abroad with an annual interest rate of 2,5%.

EY Cyprus presented its report on the future of the banking sector in Cyprus, prepared with the support of the Association of Cypriot Banks (ACB). The report highlights four key aspects: a committed, resilient, secure and stable, and progressive banking sector.

According to this report, Cypriot banks are among the largest employers on the island, employing about 7,400 people, or 974 bank employees per 100,000 customers, the third highest in the eurozone. Bank employees also receive higher compensation than the average wage in Cyprus. Since 2015, average earnings in the banking sector have been about 1.8 times higher than the average industry wage.

The banking sector emerged from the coronavirus pandemic relatively unscathed, supporting borrowers and the economy along with effective government initiatives. However, the Russian invasion of Ukraine has shaken economies and political relations worldwide, causing disruptions in production and the international trade supply chain with ripple effects on European economies. Pan-European sanctions against Russia negatively impact electricity bills in Cyprus, as the island relies heavily on imported energy, underscoring the need for an accelerated green transition. Record inflation levels have shifted markets and are expected to emphasize borrowers' solvency. However, any liquidity outflow during this period of economic turmoil is expected to be absorbed, as Cypriot banks have the highest liquidity coverage ratio in Europe at 314%.

Also, read about how to pay taxes in Cyprus in 2023: rates, preferential programs, and business benefits. The country’s tax system is recognized as one of the most lenient and favorable in the European Union. But how to become a tax resident, and what documents are needed for this? And how to optimize your business by registering it in Cyprus? Read more about this in our article at the link above.

Find out also why investors choose Paphos to live in Cyprus: see the best places, sights, beaches, and real estate. And you’ll understand why investing in the ancient city of Aphrodite is profitable.

 

SPM is your most valuable contact in Cyprus.

 

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