The Republic of Cyprus has usually been considered a business gateway between Europe and Asia, as well as the Middle East and Africa.It has been a popular direction for foreign investment for many years. Despite the economic crisis, since 2015, Cyprus has gradually started to emerge from the recession. After a three—year economic downturn, the potential of the economy and banking system of the state gradually returns to the previous level.
Why open bank account in Cyprus?
Opening an offshore business on the island of Cyprus has several advantages:
- All the income that will bring the businessperson a capital increase will not be taxed in the state of Cyprus.
- After registration of the enterprise on the island, the businessperson has the right to benefit from the low corporate income tax rates, which is 12.5%.
- The tax policy of the Cyprus company doesn’t affect the incoming investments.
- The tax on the passive income of a non—resident who is a shareholder (as well as a license holder and a lender) has been reduced to zero.
So, we can make a conclusion about the loyalty of the taxation system on the island, which applies to the dealers who have not previously worked in Cyprus, and it looks quite attractive. It is also very important that there are many agreements allowing you to avoid double taxation. Therefore, the decision to register a company is an ideal offshore solution in Cyprus. Opening a business in that state will allow you to significantly reduce the number of tax losses for managers who cooperate with an investor from the third state that doesn’t have an agreement that cancels taxation in case of collaboration.
List of social benefits the owners of offshore businesses in Cyprus can expect:
- The modern legal infrastructure of Cyprus offshore companies.
- Cyprus is an offshore zone located at a crossroads that connect the European Union, Africa, and the Middle East.
- Regular investments allowed the offshore zones of Cyprus to acquire well—developed telecommunications.
- Cyprus offshore companies are actively working on the development and improvement of their service delivery system, which allows us to call it professionally developed and modern at this early stage.
So, what do you need to open a bank account for a company in Cyprus?
- A full set of documents for the Cyprus company or BVI offshore company.
- Copy of passport with a registration + utility bill as a proof of address.
- A letter from any bank confirming that an individual has an account.
- You need to fill out the bank forms for opening an account.
- It is necessary to indicate the mailing address to receive the device for working in the bank client system.
Personal presence in the bank for opening an account isn’t required.
All documents must be in English. (If necessary, we will help you with translation.). There are no requirements for minimum (irreducible) account balance.
All companies registered on the island, including offshore, are required to conduct full-fledged accounting and conduct annual audits.Atrium Business Solutions
Benefits of Cyprus offshore bank account
Convenience and reliability of settlement accounts in Cypriot banks provides a worthy competition to other banks and has no requirements for the minimum balance and amount of the first payment:
- Opening an account within a month.
- One of the best guarantees of the bank secrecy worldwide.
- No complicated requirements to the satisfaction of the customers.
- Fast and available opening of commercial accounts in a short term.
How do we choose Cyprus banks?
To date, Internet banking is the most popular service. The main convenience is that the user can manage his/her account through it:
- pay for services and bills;
- transfer money to another account;
- change the currency.
All this is made remotely, regardless of the location, which is very comfortable. The safety of financial operations in Internet banking is at a high level. Thus, Cypriot banks use the secure contact system «DigiPas,» which can maximally protect the user’s personal data from the fraudulent schemes.
Moreover, the banks on the island offer their clients to use their credit and debit cards (there is an overdraft function) to pay for services and make purchases all over the world. The minimum balance of these cards is 10 Euros. When choosing the most promising type of investment, you can opt for opening a multicurrency account in franks, dollars, euros, rubles, and other currencies. The main benefit of such investment is that it allows you to avoid the conversion and reduce the risk of loss of funds and currency fluctuations.
On average, the term of account opening and crediting funds varies from one to ten days. Annual account maintenance costs from 20 to 300 Euros per year. The cost of opening an account in different banks can reach from $450 to $1500.
How to open bank account in Cyprus
Account opening procedure:
- Preparing a summary not only for the beneficiary but also for the account manager (for corporate accounts).
- Bank certificate confirming the availability of account in any of Ukrainian or foreign banks, both for the beneficiary and for the account manager (for corporate accounts).
- Identification of the company’s directors by providing an apostilled or original passport.
An essential condition of any Cyprus bank is a personal meeting of the beneficiary of the account with a representative of the institution. As a rule, such a meeting can be arranged in our office or at the bank’s representative office.
Considering the Cyprus membership in the EU and the country’s accession to the Eurozone, the bank policy demonstrates an increasing tendency to comply with the European requirements, which leads to the gradual complication of the procedures for opening an account and its subsequent use. Today, banks require the provision of more detailed information about the credit card movements, as well as the presence of supporting documents for almost every transaction.
Types of bank accounts you can open in Cyprus
Apart from the debit account, you can open a deposit and credit account in the Republic of Cyprus.
Unlike many European countries, it is very profitable to open a deposit account in this state, at least because the interest income is not taxed.
The deposit can be issued for both a short and a long term in any of several Cypriot banks. Deposits are made in two currencies: euros and dollars. To open an account in Cyprus, you don’t have to be present at the bank. You can complete an application online.
At the same time, the documents for opening can be sent either by courier or through email. Considering the latter option, it is important to remember that before sending documents, you need to scan them, translate them into English, and notarize them. The list of documents necessary for opening an account is the same as for registering another type of account. To make a deposit, you just need to transfer funds from another available account.
This bank account can be opened by both a legal entity who regularly needs additional credit funds and a natural person. Citizenship will not be an influencing factor in reviewing the application and making a decision.
Document necessary for the registration of credit account:
- Copy of passport.
- Bank statement confirming the absence of outstanding debts to other financial and credit companies.
- Personal information: education, kind of activity, current position, experience and criminal record in other countries or in Cyprus.
- Recommendation letter from the previous bank.
- Copies of the bank statements for the last 3—6 months.
- Documents confirming the availability of the source of cash.
- Credit history data.
- Documents for the account opened in Cyprus.
Consideration of the application will last from 2 to 4 weeks. In addition to the above, the bank employees have a right to request additional documents or invite the applicant for an interview.
The Cyprus bank account can be registered by both an individual and a legal entity (when registering a new or ready company).
Wealthy applicants who are not wanted internationally stand a better chance to get an approval decision on the registration of a credit account.
Quick and easy offshore bank account opening in Cyprus
Persons who have reached the age of 18 (regardless of citizenship) can use the services of banks in Cyprus and open an account. The package of documents that must be submitted to the bank is as follows:
- Several copies of the foreign passport.
- Completed application for opening a bank account in Cyprus.
- Documents confirming the actual address of the applicant.
- Recommendation letter from the previous bank.
It is possible to register several accounts at the same time. And this procedure is free of charge. But to activate an account, you must have a minimum amount on it, which is determined by the bank.
In Cyprus, you can open a current deposit (interest rates are low, and access to funds is free) and a deposit account (high-interest rates, subject to the limited access to funds, for the period, specified when opening the deposit by the applicant and the bank’s employee).
As you can see, everything is quite simple, transparent, and profitable. Contact our company, as we guarantee a fast registration of an offshore bank account in Cyprus.