How to Open a Bank Account in Cyprus for Residents and Non-residents
Are you planning to open a bank account in Cyprus but are unaware of how to do it yet? Don’t fret as nowadays, the entire procedure has become rapid and simple, thanks to the massive change in the banking system in Cyprus resulting in its development. That said, it takes only a short amount of time for you to have your own Cypriot bank account whether it is for yourself or a company.
Why Open a Bank Account in Cyprus?
There are several reasons why you should consider opening a bank account in Cyprus. Even if you are a non-resident, you can still benefit from having an account in the country because you will enjoy the following:
• Hassle-free and quick bank account opening process – It only takes around 3 to 4 days to have your account opened and activated.
• Ease of submission – You can submit the required documents through email or fax.
• No to low minimum start-up deposit needed – Most banks do not require you to prepare a huge amount as an initial deposit.
• Low bank fees
• Provides online banking solution
The Actual Procedure
The process of opening a Cypriot bank account allows you to take the necessary steps in managing your finances, whether you are an individual or a part of a company. It also gives you or the company you are working with the opportunity to do banking transactions here. Note, though, that because of the legislation changes and the battle against money laundering, several banks started to impose stricter and more demanding procedures when it comes to opening accounts.
It is also crucial to note that the entire process varies from one bank to another as well as your chosen currency and bank account type. In that case, here are the very basic steps:
• Choose the specific type of account you would like to open and the bank where you intend to collaborate with – The good news is that the country has plenty of banks with each one capable of providing you with various account types and services. With that in mind, it is crucial to select a bank capable of meeting your specific needs and requirements.
• Submit your bank account application – You can do this online, in the office, or on the website of the bank.
• Supply the necessary documents – Provide the requested documents depending on the type of account and the bank you have chosen. The documents are usually those that verify your financial reliability as well as your identity. You should also present documents that verify where your funds come from, like tax returns and contracts, a good credit history certificate provided by your past bank, proof of residence, like rental agreements and utility bills, identification documents, and justification of why you decided to create an account which also indicates the specific amount to deposit.
• Sign an agreement – You will have to agree to open an account, which contains data regarding tariffs, rules, and commissions.
• Give the initial deposit – This amount may differ based on your chosen bank and account type.
• Gather bank details that will let you do banking transactions.
Opening a Cypriot Bank Account in Person
Regardless if you are a resident of Cyprus or not, you are given the opportunity to open a bank account there. Note, though, that it is highly recommended to do the process in person instead of using correspondence from abroad.
So here are the actual steps:
Step 1 – Visit your chosen bank personally. In several cases, you are allowed to open one prior to arriving in Cyprus with the help of a Cypriot bank, which is an operating foreign bank, or an overseas branch. The only thing that’s important is to have your signature approved, so you can open your account. It is important to note that the Bank of Cyprus already has existing branches abroad. If you are in the UK, then you can visit or contact its bank in Manchester.
Step 2 – Gather data from several Cypriot banks. Do this early, giving you more than enough time to do a comparison of their services. Prior to selecting a bank, spend time comparing the charged fees for not only personal accounts but also international money transfers and overdrafts, among many other banking services.
Step 3 – Ask for solid recommendations from your trusted friends and neighbors, too. Once you have made your choice, you can personally visit your chosen bank. Introduce yourself. Ensure that you are at least 18 years old and you can show proof of your identity, like documents showing your local address, and a passport.
You can also do the process remotely. The most important thing to do, in such a case, is to download the app and then submit the scanned versions of your documents, like your ID and passport. Many, if not all, banks in Cyprus provide mobile apps and online banking options that you can take advantage of. You can also access their tables containing information about charges and commissions online.
Step 4 – Wait for your account to get activated. After the verification of your submitted files and documents, you can expect your chosen bank to activate your account.
Step 5 – Deposit the required minimum amount. You need to know how much the bank requires for the deposit. Fund it with that amount so you can begin using your activated bank account.
What Do You Need to Open a Personal Account (Private Person)?
If you are a private person, whether you are a resident of a third country or the European Union, then you will have to prepare a specific set of documents to start the process of opening an account. Here are the usual documents requested that may also vary depending on which bank you approach.
• Employer certification (salt slip) – The bank may ask this if you are working as an employee.
• Details regarding your existing bank accounts and/or credit cards
• Identity documents – Opening an account in Cyprus requires the applicant to be at least 18 years old. If you are a European Union citizen, you will have to present a valid foreign passport. If you are a non-EU citizen, the requirements would be a valid passport along with a residence permit or visa in Cyprus. Ensure that all presented documents are valid when you are opening an account. The expiration date should not also be less than six months.
• Purpose of your account
• Resume and application form – Your chosen bank may ask you to supply them with a resume and a filled-out questionnaire provided by them. Expect the application to differ a bit based on the bank where you applied for an account.
• Account opening application in your chosen bank
• Account statements for at least six months from your past banks – A few banks may request this so be prepared.
• Documents that verify where you live, like a title deed, lease agreement, or utility bill
• Documents that verify where the funds that you intend to transfer to your account come from – Among these documents are contracts, certificates of inheritance and tax returns, among many others.
• English translation of documents for non-English-speaking clients
• Local recommendations – There are also banks in Cyprus that request some references. An example would be a reference from another bank or a lawyer.
Expect the documents to differ based on what the Cypriot bank and authorities require. Before visiting or submitting your requirements, you should contact your selected bank. That way, you can give them all the information and documents they need right from the start.
What Bank Accounts Can You Open in Cyprus?
Whether you are a resident or non-resident in Cyprus, you have a couple of options in terms of the bank accounts you can safely and successfully open. Here they are:
Personal Bank Account
The most commonly opened bank account in Cyprus is the personal bank account. It can be opened personally by a resident in Cyprus (person living in the country) or someone who lives outside the country (non-resident). It is also possible for a local company to open a personal bank account for their employee.
Employers can also open employment bank accounts for their employees to lessen commissions and fees based on the negotiations and discussions between the Cyprus company and the actual bank.
Once you have the necessary documents, you can apply for any of the following types of personal bank accounts depending on what you need exactly:
• Basic, which provides the chance to perform every vital bank transaction, including depositing money, purchasing goods, and making and receiving payments – Once you have the basic card, you can make payments but note that it does not include credit.
What’s good about the basic account is that opening up one does not require you to be a Cyprus resident or to be employed. Your application will surely be approved if the basic account is what you are going to open. Your chosen bank may only have grounds to reject your application if they discover that you also have the same account with another bank. It may also get rejected because of a serious reason, like national security.
Their response regarding your application has to be given to you in ten days or less. If your application gets rejected, you should be able to hear valid reasons.
• Current, which can either have or don’t have an overdraft facility – Once you have a current account, you can do the things allowed in a basic account. The only difference is that you will receive a checkbook or have the chance to access an overdraft facility.
• Savings, which works similarly to a basic account – The only difference is that the savings account allows you to earn an interest.
Corporate Account
The majority of banks in Cyprus allow you to open up a business or corporate account that has different facilities, making it effortless for you to perform business transactions effectively. Among these facilities are standard products, including letters of credit, letters of guarantee, and loans for businesses. There are also specialized services, such as business credit cards. In addition, there are special features that are ideal for shipping companies.
To open up a corporate account, it would be best to contact your chosen bank so you will know the requirements. The most commonly sought documents by banks for corporate accounts are the following, so you may want to prepare all of them:
• Registration certificate
• Company charter
• Secretary and director certificate
• Company shares certificate
• Good credit history certificate – This document is only often requested from foreign companies with operations that are over two years old.
• Actual address confirmation – could be office location
• Legal address confirmation
Merchant Bank Account
This bank account is now one of the most commonly used bank accounts in Cyprus. The reason is that more and more e-commerce companies are now in operation and the number of them has a consistent growth. In most cases, internet companies create such accounts but it is also possible for traditional companies to set one.
If you are thinking of opening up a merchant bank account in Cyprus, here are the steps:
Step 1 – Choose a provider capable of installing the facility or equipment that will be used in making payments.
Step 2 – File a certificate of incorporation. This is essential in setting up or establishing an account.
Step 3 – Create a website. The online company should build a website for use in linking it to the bank account.
Conclusion
As you can see, the banking system in Cyprus makes it more convenient for not only locals but also non-residents to have a bank account in the country. All it takes is for you to decide on the specific bank in Cyprus where you want to have your account opened, submit the necessary documents, and wait for the approval and activation of your account.