One’s wish to open a bank deposit account in Cyprus is perfectly understandable. Cyprus is a beautiful country with a well-developed financial and banking system. In addition, the island attracts foreign customers thanks to the following:
- its status of a full member of the EU;
- a low tax rate of 10%;
- stable economic, political and legal environment;
- valid agreements that exclude double taxation system;
- strict regulation of the credit and financial sector by the Central Bank;
- favorable geographical position of the jurisdiction in the crossroads of the most important trade routes between Asia, Europe, the Middle East and Africa.
Find out what interest rates on deposits are offered by the Cyprus banks for non-residents in 2022 below.
What is Important about Banking in Cyprus?
Absolutely all banks in Cyprus, including representative offices of foreign financial and credit institutions, are controlled by the regulator, the Central Bank of Cyprus.
The Central Bank of Cyprus does not prohibit opening personal, business and deposit accounts to foreign individuals and companies. The main requirement for individuals at the time of opening an account with a bank in Cyprus is that they must be 18 years of age, unless of course it is a children’s account.
What Are the Benefits of Opening a Bank Account in Cyprus?
- High level of confidentiality. Banking secrecy in Cyprus is protected by law. The authorities of this jurisdiction may get access to banking information in certain situations for tax purposes only, if allowed by a tax agreement or a court order.
- Full range of payment solutions. Non-residents are allowed to open bank accounts in multiple currencies, make short- and long-term deposits, have access to Internet banking, international bank transfers, payment cards, credit services.
- Wide range of payment cards. These include prepaid debit cards with high spending limits.
- Remote account opening. This includes deposit accounts in Cyprus.
- Multicurrency accounts. These accounts allow transactions in US dollars, pounds sterling and euro, as well as in other currencies upon request.
- Technical support of the bank. It is available in multiple languages, including English.
- Fast-track account opening procedure (up to 7 days).
In addition to the above mentioned services, a non-resident customer may be offered specialized banking services, including investment services.
Many non-EU nationals use bank accounts in Cyprus to create a service history and facilitate their payments within the EU.
Free selection
of personal bank accounts abroad for
persons depositing €5000+. Expert services
based on 7+ years of experience in banking.
of personal bank accounts abroad for persons depositing €5000+. Expert services based on 7+ years of experience in banking.
What are the Terms and Conditions for Opening Deposit Accounts in Cyprus?
Banks in Cyprus provide for short-term and long-term placement of funds by depositing them in a deposit account. The currency of the deposit is euro. Should you wish to work with Cypriot savings accounts, banks offer the opening of deposits for a term of 8 calendar days or more.
Modernization of the banking system in Cyprus has made it possible to open bank accounts remotely,without visiting the bank in person.
Please find below a comparison of interest rates and terms of deposits subject to notice of withdrawal for non-residents at the banks of Cyprus:
| Deposit terms | Minimum deposit amount | Interest rate % |
| 8 days | unrestricted | 0 |
| 35 days | unrestricted | 0.03 |
| 90 days | unrestricted | 0.07 |
| 180 days | unrestricted | 0.10 |
Here are the interest rates on fixed-term deposits at the Cyprus banks:
| Deposit terms | Minimum deposit amount | Interest rate % |
| 3 months | €1000 | 0.05 |
| 6 months | €1000 | 0.08 |
| 9 months | €1000 | 0.10 |
| 12 months | €1000 | 0.12 |
| 18 months | €1000 | 0.15 |
Interest on deposits is accrued on a monthly basis and paid out at the end of the deposit agreement. Early termination of the deposit is stipulated, as well as penalties, in the form of recalculation of accrued interest.
The bank may offer the customer an individual interest rate based on the amount and the deposit term.
The banks in Cyprus offer child deposits for those who wish to open a deposit for the purpose of saving money to the child’s advantage:
- The minimum amount to be deposited is between € 30 and € 2,000 (depending on the program you choose);
- The terms is 12 months;
- The interest rate is 0.12%.
Interest received as income on deposits in Cyprus is not taxed, unlike other European jurisdictions.
According to EU legislation, holders of eligible deposit accounts are protected up to a limit of €100,000 per person. To learn more on deposits with the European banks, please do not hesitate to use our free consultation of selecting a foreign bank account.
What Documents Do I Need to Prepare to Open a Deposit with a European Bank?
To open a bank deposit in Cyprus, a non-resident customer will need to provide the same set of documents as for opening a personal European account.
All documents to be submitted to the bank must be translated into English and certified accordingly (apostille, notary). Copies of passport and the document confirming your place of residence must be signed by the passport holder.
In addition to your ID papers you will need a proof of source of funds, filled-out application for account opening and a questionnaire.
The set of documents may be sent by email or by courier. The account opening process will be carried out via the Internet.
How Can I Make Lodgements into My Bank Deposit in Cyprus?
Deposits are lodged by transferring money from a bank account opened in the name of a foreign national with any other bank. Please note that if the currencies of bank accounts do not match, an additional currency conversion fee will be charged.
How Can I Close My Bank Account in Cyprus?
The procedure for closing a Cypriot bank account can be carried out remotely via your personal online banking account. In order to do this, you need to log into your account, make sure that you have no outstanding obligations to the bank and select the Close Account option.
If you would like to know the current terms and conditions, and interest rates of the Cyprus banks, please use the opportunity of a free consultation by our experts. Expert support in opening a foreign bank account will guarantee that you get the right financial instrument working for your goals in the right way.
