Opening a bank account in Cyprus is straightforward and quick for both individuals and businesses. While most banks provide similar services, the primary consideration when selecting the right bank should be the fees and charges associated with various transactions.
To open an account, you will need to provide several documents. However, it’s important to note that the lists of required documents are partial and may change according to the requirements of the various banks that are subject to the strict regulation of the European Union
Banking services in Cyprus
In recent years, Cyprus’s banking system has seen significant positive changes, especially in technological advancements. Consequently, the National Bank has approved the opening of bank accounts online. To initiate this process, you have two options: appoint a local representative to handle the account opening on your behalf or sign the necessary documents in person upon your arrival in Cyprus. This flexibility ensures that you can begin the process even before setting foot in the country.
Most Cypriot banks offer a range of common services, including:
- 24/7 online banking and telephone support in English.
- No initial deposit requirement for account opening.
- Comparatively low banking fees.
- Acceptance of international credit cards.
- Facilitation of international deposits and transfers.
- Ability to manage accounts in foreign currencies.
Given that different companies have varied banking needs, it’s crucial to select the most suitable bank and account type for your specific requirements.
Types of bank accounts in Cyprus
Cyprus offers various account types tailored to individual and business needs:
- Private account
- Business Account
- Corporate Account
- Savings Account
- Off-shore Account
- Trade Account
Choosing a bank to manage an account in Cyprus
In 2013, Cyprus faced a profound economic crisis, influenced by a combination of factors. Primarily, the Cypriot economy was heavily reliant on its banking sector, which had sizable exposure to Greece’s own beleaguered economy. Furthermore, the Cypriot economy had a considerable dependence on its property portfolio. The value of this portfolio plummeted in the aftermath of the 2008 global financial crisis, resulting in a surge of unpaid loans and a detrimental impact on banks’ liquidity.
To prevent a large-scale withdrawal of deposits, which could have toppled the banking system due to the ensuing liquidity issue, banks were shut down for almost two weeks. Even after reopening, the range of transactions permitted by these banks was severely restricted. These challenges, among others, culminated in the dire financial crisis in Cyprus. Consequently, the government sought financial assistance from the European Union and the International Monetary Fund.
Given this backdrop, the importance of selecting a stable, reputable bank is evident. The most prominent banks in Cyprus include:
- Bank of Cyprus
- Hellenic Bank
- Eurobank
- RCB
- Astrobank
Opening a private bank account in Cyprus
For daily personal use, you might want to consider opening an account at a local branch rather than an International Business Unit (IBU), which primarily serves business needs. The IBUs generally have stricter requirements. Only Cypriot residents can open an account at a local branch. If you’re contemplating transitioning your residency from Israel, please reach out to us. We’ll be pleased to arrange a consultation regarding this matter.
While the required documentation may differ across banks, generally, you’ll need to provide the following:
- A copy of your passport or ID card.
- Proof of residence, such as an electricity bill or rental agreement.
- A reference letter from your previous bank, confirming sound credit management.
- Occasionally, a resume might be requested.
- Documents indicating income, like pay slips.
Opening a business bank account in Cyprus
If you’re registering a company in Cyprus, opening a business bank account is mandatory and forms part of the company incorporation process. While the process can be as straightforward as opening a private account, a business account requires more documentation and involves additional bureaucratic steps.
Before establishing a business bank account, evaluate the services offered by the bank, especially if the company has international dealings or foreign shareholders.
Typically, you’ll need to present the following documents, though specifics might vary:
- Proof of the company’s main address.
- A document detailing the company’s activities and its website URL.
- The company’s registration certificate.
- Details about the company directors.
- The company’s articles of association and documents outlining its corporate structure.
- Annual Financial Statements (Audit).
The importance of choosing a bank
In 2013, Cyprus experienced a deep economic crisis, which was due to several factors. First, Cyprus’ economy depended heavily on its banking sector, which had significant exposure to the Greek economy, which itself was in crisis. In addition, the Cypriot economy was somewhat dependent on its property market, which experienced a sharp decline in value after the 2008 international financial crisis. This led to a significant increase in non-repaid loans and a severe negative impact on banks’ liquidity.
All these and other factors led to the severe financial crisis in Cyprus, which led the government to request assistance from the European Union and the International Monetary Fund.
This raises the importance of choosing a stable and leading bank. The largest banks in Cyprus are:
- Bank of Cyprus
- Hellenic Bank
- Eurobank
- RCB
- Astrobank
It’s crucial to choose a bank account type that aligns with your company’s specific business activities. We provide comprehensive guidance during the bank account opening process, from helping with form preparation to ensuring you choose the bank account type best suited to your company’s needs. Contact us, and we’ll be delighted to schedule an initial consultation with you.
