How to Open Up a Bank Account In Cyprus

How to Open Up a Bank Account In Cyprus

Cyprus has always been a welcoming host to foreigners who move their permanent residency on the island. One of the steps taken to make foreigners feel like home is the establishment of several international banking institutions in order to execute their financial exchanges with ease. Furthermore, local banks have also been developed over the years to offer convenience and effectiveness to its existing clients as well as to the new ones. The process of setting up a bank account has become simple, rapid and hassle-free, while the expert staff of each bank will be by your side every step of the way.

Procedure & Documentation

To open a bank account you must visit a branch of the bank you are interested in personally. There are specific banks which offer you the ability to start the procedure online before you come to Cyprus, but you do need to be at their offices physically on the final stage of the process. If there is a branch of the bank in question in your country (e.g. there is a branch of the Bank of Cyprus in London), then you can create the account in the specific bank office without having to travel to Cyprus. The procedure includes some paperwork which needs to be signed by you and also some basic documents which need to be presented at the bank.

The documentation you will need depends upon the type of account you wish to create. Both local and foreign individuals have the option to create either personal or business accounts and companies can set up corporate bank accounts. Generally, you will need to provide an identification document, such as an ID or a passport, proof of residency, i.e. a utility bill, and a reference number from your previous bank. However, the requirements may vary depending on the bank you use, your service provider, and what purposes you require the bank account for.

Banks in Cyprus

There are currently 30 banks, both local and international, operating in Cyprus at the moment. All of them offer some basic and additional services, depending on your needs and interests. Here is a list of the most established and well-known ones and a few of the services they offer:

Bank of Cyprus

This is the biggest bank in Cyprus with 121 offices in all cities of the island, 4 in the United Kingdom and 1 in Romania. Additionally, there are representative offices in Greece, China, Ukraine and Russia. The services they offer cover a wide range which includes online banking, mobile banking, packages for young people of 18 to 25 years old and competitive packages for students. The Corporate Banking Division of the Bank of Cyprus can assist you in growing your business and managing your financial exchanges by offering overdraft limits, term loans, Asset Finance, Trade Finance and European Financing Schemes.

Hellenic Bank

This is the second-biggest bank in Cyprus, which was merged with the Cooperative Bank, and has 68 branches. The bank offers its customers a debit card in their current account with overdraft limit upon request. Furthermore, there is a Student Pack covering the ages of 18 to 26 and offering a free contactless card and a free PayBand wearable card. The package has no handling fees for withdrawals around the world and offers significant discounts in selected stores. The package ‘My Account’ covers ages from 18 to 30, with a beneficial interest rate and a Net Card which is used at ATMs and shops.

Eurobank Cyprus

The bank offers free cash withdrawals in selected ATMs, free travel insurance, free purchase protection, contactless debit cards and Visa Gold credit card with low-interest rates. The customers of the bank can make online banking payments fast and easy. Eurobank also offers quality services for corporate banking. In addition to the standard products and services, it offers specialised products, including corporate loans, CAPEX and Investment loans, tailor-made credit financing solutions, project financing in cooperation with the specialised Group Project Finance team, working capital facilities, Trading financing via Letter of Guarantees or Letters of Credits, Corporate Transaction Banking Services and shipping finance in cooperation with specialised Group Shipping DIvision.

Astrobank

Formerly known as Pireus Bank, the Astrobank allows you to create a savings account or a youth account if you are between 14 - 28 years old, in which there is no annual fee and have free cash withdrawals from any Visa ATM. You can also create a Notice Account which allows you to save money and earn interest at the same time. If you are using the Platinum Visa Debit Card package, you can link up to 4 current and 4 savings accounts.

CBD Bank

This is one of the best bank institutions in Cyprus specialising in corporate and company banking. They offer short-term business loans for up to 2 years, overdraft facilities and credit lines for trade finance and guarantee facilities to small, medium and large corporates. Furthermore, their long-term financing services include project financing, acquisition of business premises, renovation, purchase of assets and refinancing.

Alternative banking options

As technology has advanced quicker and beyond than most of us expected, we now have the ability to set up an account without even using an actual bank. If you want to avoid some of the hassle of opening up a traditional bank account you can use alternative banking options. Those are widely used by the locals as well.

Revolut

This is an easy way to have a card with no additional charges for international payments or transfers. You can create an account using your phone, by downloading the application ‘Revolut’ and adding your phone number. You will then need to add a bank account you will be transferring money from and you can use it in any shop or online purchase without any additional charges. The procedure is fast, simple and convenient. This banking alternative has become extremely popular with the younger generations in Cyprus due to its ease of use, and many entrepreneurs on the Island are choosing to use it for their businesses too.

Transferwise

You can open a TransferWise borderless multi-currency account if you wish to make international transfers with no additional charges. It does not cost anything to create or maintain an account, and it involves up to 28 global currencies. You can also open up a business account for use with cross border payments and easy mobile and online use.

Although the alternative online banking options are simple, fast and easy to use, they bear some limitations in comparison to the established banks. For instance, you will not be able to get a mortgage currently through these banks, or it may not be possible to receive your salary in certain cases using a Revolut or a Transferwise account, or you may not be able to withdraw a large amount of cash in one month, though many of these limitations are being overcome and many others are easily mitigated through the premium versions of the respective companies.

In general terms, creating a bank account in Cyprus has become a rather simple procedure. The specific steps you will take and the documents you will need depend upon the type of account you want and the bank institution. Furthermore there exist many service providers who can help open up a bank account for you and deal with the majority of the paperwork for your Corporate and commercial banking needs. In case you have any doubts, you can rest assured that the bank representatives will assist you throughout this procedure and offer you the most suitable solution based on your needs and interests.

Written January 2020