How to Open a Bank Account in Cyprus
The financial system of Cyprus has been actively developing since 2008, when Cyprus became part of the European Union. And in a few years, the financial sector has become one of the main sectors of the country’s economy. Thanks to this rise, many have been able to successfully develop their business.
Cypriot banks must adhere to and follow all the requirements that banks in the European Union adhere to. The basic principle is “Know Your Client”, according to which banks conduct a thorough check of the information provided by a potential client and the legality of the source of origin of funds. Therefore, in order to open an account in Cyprus for a non-resident remotely and without personal presence, it is necessary to prepare documents professionally.
The standard procedure for opening a Cyprus bank account consists of the following steps:
1. Choosing a Cyprus bank
When choosing a bank, we pay attention to the following:
- The bank’s requirements to the client, the complexity of the account opening procedure and the procedure for checking the client and his funds;
- List of services provided by the bank;
- Compliance of the bank profile with the specifics of the proposed account transactions;
- The possibility of making money transfers abroad;
- Service rates.
2. Collection and preparation of documents for opening a bank account
This is the most time-consuming stage, since it is very important to gather all the information that the bank needs when checking the reliability of the client.
During the preparation and analysis of the package of documents, the Cypriot, and Ukrainian lawyers of Feod Group carefully check each document: starting from the dates and signatures, ending with the correctness of the assurances.
3. Obtaining prior consent from a Cyprus bank
4. Signing of bank questionnaires and forms
5. Interview with a representative of the bank and sending signed forms to the bank
6. Access to online banking and receipt of a bank card
The March statistics for 2019 are very indicative, for example:
- all deposits in banks in Cyprus amounted to 47, 500, 000, 000 €;
- total loan amount – 38, 300, 000, 000 €.
- More than thirty foreign banks are officially registered on the territory of this state.
A loyal financial policy ensures stable growth of the economy of the country itself and the welfare of local and foreign companies using the services of Cypriot banks.
It is worth noting that in recent years in Cyprus, not only has the procedure for opening bank accounts changed, but the whole process of registration has changed. Recent changes in the law on countering the legalization of proceeds from crime and new rules of the Central Bank have made their adjustments. An important innovation was the ability to initiate the procedure for issuing a bank account online.
What is important to know about the Cyprus banking system as a whole?
The Central Bank of Cyprus (hereinafter referred to as the Central Bank) is at the head of all financial institutions. The services themselves provided by different banks do not differ much. The main differences are what percentage the bank charges for transactions, and how much the annual maintenance of accounts and cards costs.
The Central Bank allows both individuals and companies (not only Cypriot ones) to open various bank accounts.
To open a personal account, the determining factor is age – the future account holder must be over 18 years old. But which bank to choose is up to you.
Advantages of the process of opening an account in Cyprus
- speed (in some cases up to 3-4 days);
- documents are sent online;
- in most cases, you do not need to make a minimum deposit when opening an account;
- minimum fees and interest;
- a wide range of online opportunities.
What types of bank accounts are available in 2023?
There are different types of accounts in any bank. As a rule, this is a personal, savings, corporate, or credit account.
Personal and savings accounts are issued to an individual. Both for residents and non-residents. Most often it is a salary or debit account. If the salary is paid by a local Cypriot company, then the bank provides preferential terms for servicing accounts. A personal account can also be a savings account. It is relevant for those who want to accumulate funds and manage their assets.
A corporate account is required to register a company in Cyprus. This account is needed for the authorized capital and for performing various operations in the future. A business account is no more difficult to open than a personal one, only a little more documents are required. We will tell you more about this below.
Many people are interested in whether it is possible to issue a trading account for a company, because this is a necessary component of the functioning of organizations operating in the field of e-commerce. Any company working online needs to have such an account. But such an account can be opened for different companies. Important:
- submit an application for registration of a trading account;
- provide a certificate of registration;
- take care of creating a secure, in terms of the safety of personal information of visitors, an Internet page in order to dock it with the company’s account;
- install payment equipment.
- Credit account
What attracts you the most when it comes to opening a credit account? Of course, these are low percentages. And Cyprus is a favourable zone in this regard. For more information about the credit system in Cyprus, contact us, and we will advise you for free.
How Not to Make a Mistake in Choosing a Bank?
Carefully study all the conditions stipulated by the bank. Perhaps there is a mandatory minimum amount of the amount deposited to the account. In the case of a business account, it is important to find out on what conditions it is possible to carry out international transactions, especially if we are talking about foreign shareholders of the company. It is important to find out if Internet banking is available, because without it, some operations are extremely difficult to carry out, especially at a distance.
We recommend Hellenic Bank or Bank of Cyprus to our clients.
Is it difficult for a non-resident to open an account in the Bank of Cyprus?
Any non-resident who has the necessary documents can open an account in Cyprus. For residents of third countries, it will just take a little more time. Plus, you need to justify your goals in more detail.
Our company helps with the registration of an account in a Cyprus bank and without the arrival of an individual in the country. You can initiate the procedure remotely from Russia, Ukraine, Belarus, Kazakhstan or any other country. To clarify the cost of this service, write to us.
How to open an account in Cyprus for an individual?
To open a bank account in Cyprus, an individual will need the following documents:
- Photocopy of the passport
- Registration or any confirmation of the place of residence;
- Confirmation of your annual income (for example, salary statement, documents confirming your active or passive income, dividends, a copy of the tax return, and so on)
- A letter of recommendation about your solvency, drawn up by employees of a bank or other financial institution (the letter is considered valid for three months)
- Documents confirming the source of your income, the value of your property, the legal status of your property.
How to open a bank account in Cyprus for a legal entity?
To open a corporate account with the Bank of Cyprus, you need to collect the following documents:
- The name, legal address of the company, the actual address, a detailed description of the activity, a link to the website (if any).
- Certificate of Competence, an official certificate of the company’s solvency (Letter of Good Standing).
- Certificate of company registration.
- Certificate of the Directorate and the secretariat.
- Documents confirming the corporate structure of a legal entity, showing the entire structure up to its beneficial owner. This documentation should be provided in a clear and understandable form.
- Financial reports.
- Documents confirming the legal source of funds.
- Certificate of good Standing of the company (Letter of Good Standing), as well as a letter of recommendation no older than three months ago. The same set of documents must be provided if it is necessary to open a personal account for the owner of the company.
Important: All documents must be in English. Or it is necessary to make their official translation, certified by a notary.
How to Open an Offshore Account in Cyprus?
Officially, such a concept as “offshore” or carrying out activities outside the country is no longer used, but it is possible to open a corporate bank account for a company that does business outside Cyprus.
If you wish to open a business bank account in Cyprus, our team here at IB-IA GROUP UAB will be delighted to assist you. We have eight years of experience in helping clients to open bank accounts in
Europe. We tap into our vast network of trusted partners in the European financial services industry to offer the most suitable and cost-effective solutions that improve the functioning of the businesses we serve.