As far as offshore banking and financial institutions are concerned, Cyprus has been the shining beacon in Europe. The small island nation has quietly established itself as one of the leading providers of offshore financial services to clients around the world.
So if you’re thinking "Can foreigners open an offshore bank account in Cyprus?", the shortest version is; yes!
In this blog, we will be discussing questions regarding Cyprus being one of the most sought after offshore banking centers by non-residents, and what exactly it entails for foreigners to create an account in Cyprus.
You’ll be on your way to learning everything there is to know about offshore banking in this sunny Mediterranean island.
Can a Foreigner Open an Offshore Banking Account in Cyprus?
The simple answer is yes – Cyprus allows opening offshore bank accounts for foreign clients. In contrast to some countries, no citizenship restrictions prevent a non-Cypriot from establishing banking operations there.
Also, opening an account as a foreigner in Cyprus is also relatively simple. If all of the documents are in order, whether physically or electronically, an account can be set up within a few business days.
Thanks to Cypriot’s liberalisation of non-resident banking, Cyprus is also one of the easiest countries to open an offshore account when visiting or working abroad.
What Documents are Required for a Foreigner to Open an Offshore Banking Account in Cyprus?
Now that you are aware of your potential as a foreigner, let us see just what you will need. The documentation process itself is fairly straight forward - think of it as being a bit like opening a domestic account back home.
Most Cyprus banks will request:
- Valid passport/National ID as the primary form of identification. Just make sure it lasts at least 6 more months.
- Evidence of residence, such as a recent utility bill sent to your home.
- Name and addresses of two banks you have accounts with, for reference.
Some banks will even ask for income tax returns or company statements if you are using the account for business purposes.
Regardless, Cyprus keeps the ID element simple and straightforward, meaning there is little hassle for qualified individuals and businesses getting up and running.
Is It Legal for Foreigners to Open an Offshore Banking Account in Cyprus?
Yes, you can open an offshore bank account in Cyprus for free as Cyprus has a strong offshore financial services regulation. Under laws and regulations enforced by organizations such as the Central Bank of Cyprus and the Financial Intelligence Unit, foreigners are allowed to establish and maintain offshore accounts in Cyprus.
The island nation offers one of the most established offshore hubs in Europe with a long history serving international clients in a secure political and economic context.
Offshore Banks such as Jetonbank are licensed and regulated to provide offshore banking to individuals and corporate across the globe. No legislation prohibits foreigners from setting up an offshore operation in the Cypriot financial system.
What are the Benefits of Opening an Offshore Banking Account in Cyprus as a Foreigner?
There are several reasons why having an offshore bank account in Cyprus is desirable to foreign customers:
- Tax advantages - Profits from foreign investments and dividends that were transferred into the account do not generally incur tax on Cyprus’s part. This is a great way to cut your tax bill in half.
- Bank secrecy - While not universal, Cyprus has confidentiality laws which ensure client privacy and money isn’t shared with other states regularly.
- Stable economy and currency - Cyprus operates on the Euro which guarantees currency stability. The country also has a robust market economy and is subject to EU financial regulations.
- Access - Cyprus has more than 50 bilateral double tax avoidance agreements. Money is easily sent from account to account across the globe.
- Professional services - You can avail world class private banking, trust and company formation services from companies such as Jetonbank.
- Residency benefits - Having a large bank account will fund residency and citizenship applications through investment plans.
The tax advantages, anonymity, and European and global markets make Cyprus a popular offshore banking destination for foreign clients.
What Types of Offshore Bank Accounts are Available for Foreigners in Cyprus?
Offshore bank accounts in Cyprus are available to foreigners in a variety of forms:
- Savings Accounts - Simple accounts where people stash interest-bearing money. Depending on the offer, deposits can be from $1,000 to $5,000.
- Current Accounts - Checking accounts that you can use for routine payment and transfers. Required higher minimum balances than savings accounts.
- Time Deposit Accounts - Accounts that lock in funds for a specified amount of time in return for higher interest rates. These terms range from 3-12 months.
- Private Banking Accounts - High minimum balance accounts (up to $100K) personalized banking solutions for HNWIs. Provided by banks such as Jetonbank.
- Offshore Company Bank Accounts - Accounts affiliated with Cypriot International Business Companies (IBCs) that separate personal and corporate accounts.
- Accounts for Assets - Funds held by a trustee for an account structure, such as a trust, for the purposes of protection and succession.
Foreigners can choose from various account types that they would like to open in order to carry out personal or business offshore banking in Cyprus.
Cyprus is one of the most attractive locations for a foreigner looking for an offshore bank account due to legal freedom to open accounts, tax incentives, stability of economy and variety of products.
A firm such as Jetonbank can support the client throughout the process from opening of the account to regular private banking services.
Digital documentation is acceptable, but prospective customers may consider first visiting Cyprus to open an account in person and see for themselves the nation’s reputation as one of the world’s best offshore financial centres.
Cyprus is a legally recognised and attractive place for foreigners to do offshore banking.
