How to Open a Bank Account in Cyprus as an Expat?
Opening a bank account in Cyprus is a straightforward and a fast procedure. Many times, I have listened to my customers about their tiresome experiences dealing with bank account openings overseas, and how they were pleasantly surprised by their smooth experience in Cyprus. That is if you know what to do, who to contact, and where to go. This article is intended to inform you about just that!
Banking System in Cyprus Explained
In Cyprus, there are two main types of banks; the local ones and international banks which are commonly overseas branches of some Turkish banks. Nevertheless, all banks are regulated by the Cyprus Central Bank which is a government bank regulating other banks. The central bank issues licenses to the operational banks, monitors their activity, and ensures that the local banking laws and regulations are abided by. Turkiye Is Bank, or Garanti Bank are well-known international banks. Whereas, Creditwest and Asbank are well-known local banks. A third type is public banks, of which there are only two of them; these are Vakiflar and Koop Banks.
Can a Foreigner Open a Bank Account in Cyprus?
Yes, a foreigner who intends to obtain residency, invest, or conduct business in Cyprus can apply to open a bank account in Cyprus. Property ownership, working, or student visa all qualify for the permanent residency scheme.
Where to Go to Open a Bank Account in Cyprus?
Going through different branches of different types of banks to check if they service expats can be time-consuming. Hence, a few of the local banks have opened dedicated Expat Banking branches in the most popular town centers. There, you will find banking representatives who are experts in opening foreign national bank accounts and you will find many languages spoken, English being the number one. When making an appointment you can make a special request to be appointed an English-speaking customer rep.
When Can You Open a Bank Account in Cyprus?
Bank account opening is a service provided with prior appointments. I would advise you to call a few days in advance to book your appointment with the bank you intend to visit. Typically banks work Monday to Friday with different work hours for the summer and winter months, typically as outlined below.
Working Hours of Cyprus Banks
Winter Term (from 1st of September until 1st of June):
Working Hours:
Mon. – Fri.: 08.00 – 12.00 and 13.00 – 17.00
Cashier Hours:
Mon. – Fri.: 08.00 – 12.00 and 13.00 – 16.00
Summer Term (from 1st of June until 1st of September):
Working Hours:
Mon. & Thurs.: 08.00 – 12.00 and 13.00 – 17.00
Tue. & Wed. & Fri. 08.00 – 12.00 and 13.00 – 15.30
Cashier Hours:
Mon. & Thurs.: 08.00 – 12.00 and 13.00 – 16.00
Tue. & Wed. & Fri. 08.00 – 12.00 and 13.00 – 14.30
Visitors should also note that the banks will be closed on national holidays, where a typical holiday calendar will look like the one given below, with slight variations.
- January 1st
- April 23rd
- May 1st
- May 19th
- July 20th
- August 1st
- August 30th
- October 29th
- November 15th
- 8 days of religious holidays a year. The dates change every year. These 8 days include 3 days of Ramadan, 4 days of Eid, and two half days before each.
What are the Documentations Required from a Foreigner to Open a Bank Account in Cyprus?
- Passport Original: must be valid, expired passports cannot be used. If the applicant is from a European Union member state, they can alternatively use their valid form of government issued ID.
- Proof of address: Often a document called ‘ikametgah’ is requested from the Muhtar (the town chief) of the applicant’s Cyprus address. Alternatively, in expat branches, a recent utility bill with the full name and address from the primary address (local or from overseas) of the applicant can be used. Another form of proof of address can be a valid driver’s license (local or from overseas) if it has the full name and address of the applicant.
- Deposit: Most expat banks require a sum of approximately 1000 Euros deposit when opening a new bank account for foreigners.
- Stamp Duty Tax: A negligible sum of paperwork stamp fee is taken to process the paperwork, often this is less than 5 US Dollars.
Do I Need a Bank Account in Cyprus?
Why would you need a bank account in Cyprus if your overseas bank and cards satisfy your needs?
The truth is that you don’t. If you are just visiting for a short time, and do not have the intention to stay or do business for an extended period (that is longer than 3 months), then you can use your VISA or Mastercard in your day-to-day transactions and withdraw money at ATMS in multiple currencies.
Not all ATMs allow for multi-currency withdrawals but the ones that do are not hard to come by and are clearly labelled. These currencies are USD, GBP, and Euros alongside the Turkish Lira. Foreign bank accounts are accepted pretty much everywhere and transactions are easy and straightforward with tax and tip being included in the initial offering price. However, if you are an AMEX user, things can get a bit complicated with most post machines being incompatible with this type of card and card numbering system. I would in that case recommend carrying cash for the duration of your visit or obtaining a VISA or Mastercard prior to travelling.
Even if you are investing in a property in Cyprus with the aim of collecting rental returns, most rental management companies will have a dedicated client bank account for these types of transactions and will credit you your net balance with the option to either collect cash or to receive your payment as a transfer to your overseas bank account. Most of the time these rental and property management companies will also pay your bills and taxes. Hence, you will still not likely need to have a local bank account.
If you are here to stay long-term or do business then opening a bank account is necessary. To obtain a residency permit, one of the requirements is to open up a local bank account to deposit a sufficient sum to show as proof of income that can sustain the applicant’s needs. This sum can be different depending on the type of resident visa the applicant is aiming for.
The resident will also find it easier to use a local bank account as this will minimize the transfer costs of their expenditure from their overseas bank account. It will be easier to pay local bills, conduct day-to-day transactions with lower fees, and manage the money in favorable exchange rates.
Commercial Bank Accounts in Cyprus
If you are in Cyprus to conduct business, then you may also need to open a commercial bank account to satisfy your needs. For this, the applicant must also obtain a registration of their company to the TRNC Registrar of Companies. Business incorporation can be complex and best assisted by local lawyers and experts in this area. In some sectors, a local citizen shareholder of 51% is a requirement for business incorporation and in most cases, a deposit sum will be required.
Documentation and the procedure of obtaining a commercial bank account is very different from a personal bank account which is the focus of this article. We will not explore in detail this type of bank account as the requirements for commercial bank accounts vary depending on the type of business conducted and their banking needs so a personal consultation from an expert bank representative is advised.
How Long Does It Take to Open a Bank Account?
Often applicants are offered an appointment on the same or the next day of inquiring for an appointment, however, this will depend on how busy the bank is at the time of inquiry. Often winter months of January till March are the least busy months. Once the appointment is obtained, all you need to do is show up on time to the branch you have been appointed to and your customer rep will be waiting for you. Don’t forget to bring all of the required documentation outlined above in the section “What are the Documentations Required from a Foreigner to Open a Bank Account in Cyprus?”
The appointment will take approximately half an hour, during which your customer rep will guide you through the application process step by step, set you up for online and mobile banking, give clear instructions on how to make transfers and help you apply for credit and/or debit card if needed. If you are an American citizen there is some additional paperwork to file the Foreign Account Tax Compliance Act (FATCA) but, the process is more or less the same and just as easy, and should take no longer than an hour to complete.
Your accounts will be ready to use by the end of your appointment, and you can start to make money transfers in and from your account and make online payments. If your account is from CreditWest Bank, they are also offering contactless payments in most local places via ‘LocalPay’.
If debit and/or credit cards were applied for, this application will be sent to the card provider which is often CardPlus. It will approximately take two weeks from the time of application to receive these. Often your customer rep will inform you when these are ready for collection.
What are the Advantages of Having a Bank Account in Cyprus?
– Minimizing fees associated with local spending
– Strict confidentiality and respect to the privacy of the origin of your wealth – for Americans still subject to FATCA regulations
– Easy and short process for opening a bank account
– Low fees and low deposit requirements
– Minimum paperwork and bureaucracy to open a bank account
– Online banking allows for payments from anywhere in the world once the account is set up
– Having access to banking and financial service offerings for investors in unique bond markets
What are the Rules for Opening a Bank Account in Cyprus?
There are a few basic rules for obtaining a personal bank account in Cyprus. The main rule is that the applicant must attend the application interview in person. The applicant must also be above the age of 18, which is the legal age of majority in Cyprus. For younger individuals, parental involvement is obligatory.
Typical Services Offered by Banks in Cyprus
Below I put together a list of services that are commonly offered by Cyprus banks, the services offered are not limited to this list but, this gives a pretty good outline.
- Cash withdrawals in ATMs (some banks offer multiple currencies; it is advised to check this with your bank)
- Online local and international payments
- Credit, and debit cards
- Contactless payment services like ‘local pay’
- Foreign exchange (FX) of currencies; USD, GBP, EUROS, and TL are commonly offered currencies (rates should be checked, the buying and selling rates are usually different)
- Trading precious metals
- Investing in local bonds, shares, and securities
- Savings accounts in different currencies sometimes with more favorable interest rates
- Obtaining loans or bank mortgages
How Are Local Banks Differ in Practice and User Experience from International Banks?
Most services outlined in the “Typical Services Offered by Banks in Cyprus” section of this article, are pretty straightforward and indifferent from international banks. When using a local bank account in transfers of money between local accounts, an account-specific dedicated number is used called UBAN.
When international transfers are handled, the beneficiary will be the bank itself and not the bank account holder. The bank account holder will be referenced in the remittance section alongside the account number. In this case, the bank’s IBAN number will be used instead of the account holder’s individual UBAN number.
VIP Inspection and Onboarding Program
As real estate professionals, we are no experts in the banking sector, that is why we partnered up with local professionals including bankers and legal advisors, and incorporated our services as a package.
Beware of Scams
With online international transactions becoming mainstream daily tasks, more and more online scam attempts are surfacing. If you have been informed of any changes regarding your account, account number, or password make sure to call and confirm in person through the main phone lines of your bank. Do not give away your password or PIN under any circumstances.
Disclaimer: The information provided in this article is accurate as of February 2024. However, it is important to note that banking regulations and practices may undergo changes over time. Banks reserve the right to request additional documentation or decline applications at their discretion. It is also worth noting that different banks may have varying procedures for applicants.
Sincerely,
Director of Mediterranean Condos | Investment, and Residency Expert Broker in Cyprus Real Estate
Voted Forbes Best Buy | Formerly associated with Live and Invest Overseas, Forbes Global Properties, & Expat Exchange
Email: 📧 cyprus@mediterranean.condos
Phone: ☎️ +90 533 864 1652
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