Banks in Cyprus

How banks operate in Cyprus

There are 20 banks operating in the country, though most of them are branches of foreign financial institutions.

The Central Bank of Cyprus is one of the oldest banks in the country. It was established in 1963 and today performs the priority function of licensing and supervising the operations of commercial banks and insurance companies.

Practically all Cypriot banks offer multi-currency account services. But this is not the only reason a large number of foreign nationals open accounts with local financial institutions.

Cypriot banks are known for relatively low fees on transfers within the European Union. In addition, bank staff speak English and Russian, which significantly simplifies communication between financial institutions and their clients.

How to open an account

Not only citizens of the country but also foreign nationals can open an account in Cyprus. The most important determining factor is the potential client's age: they must be over 18.

It is important to note that not all Cypriot banks work with foreigners. Individuals without resident status are advised to approach Alpha Bank, Astro Bank, or Cyprus Development Bank.

Remote account opening is not possible. A potential client can submit an online application, but must be personally present to sign the account-opening agreement.

To open an account, foreigners also have to pass a due diligence check, during which bank representatives verify not only the potential client's good faith and solvency but also carefully review their credit history.

How to get a loan

Banks in Cyprus issue loans to citizens of the country and to foreigners with residency status. Tourists without official status cannot obtain financing for buying property or cars. Consumer loans are not issued to them either.

Consumer loans are available to people no older than 65. The rate depends on the loan term, the amount issued to the client, and whether collateral is provided.

Cypriot banks are willing to issue mortgages. The loan term in this case ranges from 5 to 40 years.

When approving an application, bank staff look at three main factors:

• the borrower's age (minimum age 18, maximum age 65);
• sources of income (if the borrower earns income only in rubles, the probability of refusal increases significantly - ideally they should have several sources, for example in euros or pounds sterling);
• the amount of monthly income (it should be at least twice the amount of the monthly payment).

Banks only lend against liquid properties. The subject of the transaction can be property from either the primary or secondary market.

Banks in Cyprus: what documents you need to prepare

It is easiest for individuals with residency status to open an account. Non-residents can also do this, though the probability of refusal is quite high in that case.

To open an account, a foreign national needs to provide the following documents:

• a foreign passport;
• a statement confirming there are no outstanding loans;
• statements from banks where the potential client already holds accounts (information for the last 3-6 months must be provided);
• documents confirming the source of income and its legality;
• credit history.

An account-opening application is reviewed within 2-4 weeks on average.

It is important to note that the list above is not exhaustive. Each bank has its own requirements for the borrower and the document package. Before applying, we recommend reviewing the terms of cooperation of each individual financial institution.

Working with banks in Cyprus: key features

Banks in Cyprus are governed by the country's current legislation. However, this does not mean all financial institutions operate under the same rules.

Below is a closer look at the most important terms of cooperation offered by the most popular banks in Cyprus.

Bank of Cyprus

The oldest bank, with representative offices open around the world.

Both citizens of the country and foreigners with residency status can open an account in Cyprus with this bank. Staff at the financial institution offer each client unique terms of cooperation and lending.

Bank of Cyprus offers clients the following types of services:

• opening checking, deposit and credit accounts;
• account servicing;
• property and vehicle insurance.

This bank works with both individuals and legal entities. A special business lending program has been developed for entrepreneurs. A low rate of just 3.5% is a feature of this program and is subsidized by the country's Ministry of Finance.

Hellenic Bank

The largest bank in Cyprus, which can rightly be called the leader in digital banking.

The bank has a fairly developed national network: today more than 120 branches operate across Cyprus, whose staff provide clients with the following types of services:

• opening and servicing multi-currency debit and credit accounts;
• online banking;
• real estate transactions;
• insurance services for individuals and legal entities.

Those who want to open an account in Cyprus with this bank should be aware that withdrawing cash from ATMs located in other countries is not possible.

Alpha Bank

A relatively young bank, which began operating in Cyprus in 1998.

This financial institution provides a standard list of services, namely:

• housing and consumer loans;
• opening deposit, credit and debit cards;
• mortgage and consumer lending;
• domestic and international transactions.

The bank serves individuals and legal entities, as well as foreign entrepreneurs. In addition, the financial institution offers personal discounts, bonus miles and individual solutions for business development.

FBME Bank

This Cypriot bank began operating in 1982. It is an international-class financial institution, with more than 700 branches open.

Citizens of Cyprus and foreigners with residency status can open accounts with this bank in any currency. When transferring or paying funds, the amount is automatically converted at the current exchange rate.

Clients of the bank are provided with a remote account monitoring and management service through the FBME Direct system.