With the ease of living provided by all these features, Cyprus offers students a unique environment for education and has also become a popular place for offshore banking needs in recent years.
Cyprus, the third largest island in the Mediterranean after Sicily and Sardinia, is known for its temperate climate with almost 300 sunny days a year, friendly people, cultural diversity, and untouched natural beauties.
There are six districts in Northern Cyprus: Nicosia, Kyrenia, Famagusta, Guzelyurt, Iskele, and Lefke. It is one of the most popular centers where Mediterranean history and culture are kept alive, from the dialects spoken to the food, from the vegetation to the seas.
How to Do Offshore Banking in Cyprus?
In the early 1990s, offshore banking practices were started in Cyprus to stimulate commercial life as well as the tourism sector, provide financing opportunities for investments, increase employment, and promote the country.
After the offshore banks started to be established in Cyprus in 1991, the "Off-shore Companies Service Law" came into force in 1993 and allowed the establishment of tax-exempt offshore companies.
Companies to be established according to this law will conduct their operations outside the country's borders and obtain their income from abroad. It is exempt from all taxes and exchange controls.
To develop offshore banking, which will contribute directly to the services sector in Cyprus and indirectly to the general economy, a regulation has been issued based on the Off-shore Banking Services Law No. 1990/48 and the authority given to the Council of Ministers by this law.
With the regulation, the establishment, working principles and working subjects of coastal banks have been determined.
Cyprus citizens are completely prohibited from becoming partners in such banks or entering into commercial relations.
When opening an offshore banking account in Cyprus as an expat, identity verification is required. For this, the applicant must present a valid ID card or passport.
In some cases, a driving license may also be accepted. It is important that the document is not expired and contains all relevant information such as name, date of birth, and residential address.
How to Open an Offshore Banking Account in Cyprus?
To open an offshore account in Cyprus as an expat, some important documents are required. Below are the basic requirements required by most online banks in Cyprus.
A passport is the primary identification document and is required by banks for the identification and verification of the applicant.
A registration certificate or a similar document confirming the applicant's current place of residence is necessary. This could be, for example, an electricity or water bill that is no older than three months.
The tax identification number of the applicant's country of residence is required to meet tax obligations both in Cyprus and in the country of origin.
Some banks also require a bank reference letter issued by the applicant's current bank. This letter confirms the existing banking relationship and provides additional trust with the Cypriot bank.
It should be noted that the requirements of different banks may vary slightly. Therefore, it is advisable to contact the bank where you wish to open an offshore banking account in Cyprus directly to obtain specific information and documents needed to open an offshore account in Cyprus as a foreigner.
Can Anyone Open an Offshore Banking Account in Cyprus?
The law in question also allows offshore banks to purchase shares within the country. Article 5 of the Off-shore Banks Law states that "off-shore banks may invest in stocks and other securities of companies registered in Cyprus". Offshore banks can buy shares with the money they collect. Our article indirectly allows offshore banks to "collect deposits" through shares.
Off-shore banks carry out their duties freely and independently of the taxation and financial rules in force in Cyprus. The minimum paid-in capital in offshore banks is determined as 500 thousand USD. If the capital amount is not deposited to the Central Bank, the preliminary permits of offshore banks will not be finalized.
In addition, offshore banks whose registration procedures have been completed under the Companies Law are required to deposit $20 thousand to the cashier of the Revenue and Tax Office.
Additionally, all fees and taxes that offshore banks must pay due to the law will be compensated in US dollars or euros. To prevent malicious use of the privileges granted to offshore banks, a Cyprus citizen must be included in the three-person board of directors.
50 percent of the bank's staff must be Cyprus citizens, and the general manager or deputy general manager of the bank must also be a Cyprus citizen.
If offshore banks violate the rules determined by law after inspections, bank managers will be sentenced to a ten billion fine or seven years in prison.
In addition, motor vehicles brought from abroad for use by offshore banks in Cyprus will be exempt from all taxes, duties, fees, and funds.
How to Do International Offshore Banking in Cyprus?
Although offshore banks in Cyprus were previously prohibited from carrying out monetary activities in Cyprus, this was indirectly eliminated with the "Offshore Banks Law".
Banks in Turkey that collect deposits within the country and create offshore depositors in a short time pose the danger of a similar situation in Cyprus with the current law.
Off-shore banks, which are prohibited from collecting deposits within the country, were allowed to open a deposit account in any bank within the country with this law.
In addition, offshore banking in Cyprus can make payments to the country for their expenses from this account. In this way, money flow from offshore banks to domestic markets is ensured.
Normally, a bank hires personnel, collects money, and pays interest in return for the money. In addition to interest, it allocates required reserves and pays taxes to the state in return for the deposits.
Therefore, when giving the loan, he has to calculate the cost of the loan. This is generally proportional to interest and taxes.
For example, if interest rates increase, the cost of the loan also increases. Since offshore banks are exempt from all taxes and fees, they are allowed to provide loans, creating competition between banks in the country and online offshore banking in Cyprus.
Best Digital Bank to Do Offshore Banking in Cyprus
For the most advanced offshore banking solutions you need, Jetonbank, which is experienced in Cyprus banking regulations, offers applications via mobile application.
At Jetonbank, we offer the digital banking tools and applications needed by investors and customers who want to open an offshore bank account in Cyprus.
You can contact Jetonbank right now and apply for an offshore bank account in Cyprus for both individuals and businesses, thanks to the digital banking tools offered by Jetonbank.
If you want to avoid the tax regulations of the country you live in and want to protect your assets safely within the banking regulations of another country, you can easily open an offshore bank account in Cyprus through Jetonbank.
Jetonbank will be a great partner for your offshore banking needs in a country with an advantageous banking ecosystem like Cyprus. Our easy solutions in online offshore banking are waiting for you.
