Setting up a company in Cyprus offers remarkable opportunities for international entrepreneurs, but one critical step remains after incorporation: securing a functioning commercial account. The Mediterranean island has positioned itself as a premier European business destination, blending favourable taxation with a robust regulatory framework.
Cyprus joined the EU Single Supervisory Mechanism in 2014, bringing its financial institutions under strict European oversight. This membership grants businesses access to SEPA transfers across the Eurozone while maintaining strong depositor protections. The island’s banking sector has demonstrated remarkable resilience, with major domestic institutions reporting capital adequacy ratios well above ECB minimum requirements. Bank of Cyprus maintains a CET1 ratio exceeding 20%. In comparison, Eurobank Limited reports a CET1 ratio above 34%, positioning Cyprus among the most strongly capitalised banking sectors in Europe. Such financial stability makes Cyprus an attractive jurisdiction for establishing lasting commercial relationships.
What Does a Commercial Bank Account Mean for Your Business?
A commercial account serves as the financial backbone of any registered entity in Cyprus. It differs fundamentally from personal accounts in its purpose, functionality, and regulatory treatment. When you register a private limited liability company, the account becomes mandatory for depositing share capital during incorporation, later transforming into your primary channel for all monetary transactions.
How does such an account function in practice? Financial institutions providing business banking services in Cyprus enable you to receive client payments, process supplier invoices, manage payroll obligations, and maintain transparent records for tax authorities. The account number becomes your company’s financial identity, appearing on all official documentation and establishing credibility with trading partners throughout Europe.
Why Cyprus Stands Out for Corporate Banking Solutions
The Mediterranean island offers compelling advantages for enterprises seeking European financial infrastructure. Member state status within the EU provides seamless access to the single market, while integration into the SEPA payment network enables efficient euro transfers throughout the continent.
The corporate income tax rate of 15%, effective from 1 January 2026 under the comprehensive tax reform, remains among the most competitive in the European Union. When assessed alongside the extensive exemptions on dividend income, capital gains from securities, and the IP Box regime (effective rate of 3%), the jurisdiction offers a compelling fiscal framework. An extensive network of over 65 double taxation treaties further supports international business structures.
The 2026 reform also introduced several changes that directly benefit newly formed companies establishing banking relationships in Cyprus:
- Abolition of stamp duty for most corporate transactions, reducing document execution costs during formation and account opening
- The new “incorporation test” treats companies formed under the Cyprus Companies Law as automatically tax-resident, providing immediate certainty.
- Abolition of Deemed Dividend Distribution for post-2026 profits, allowing companies to retain earnings
- Reduction of Special Defence Contribution on dividends from 17% to 5% for domiciled shareholders
Eligibility Criteria for Opening Corporate Accounts
Who qualifies for a business account in Cyprus? The answer encompasses a broad range of entities. Private limited liability companies represent the most common applicants, though public companies, partnerships, and branches of foreign corporations also qualify. There is no minimum capital requirement stipulated by most financial institutions, though nominal share capital of approximately €1,000 remains standard practice.
Eligibility requirements typically include:
- Valid Certificate of Incorporation from the Registrar of Companies
- Registered office address within Cyprus
- At least one director and shareholder is identified with complete documentation
- A clear beneficial ownership structure disclosed to compliance officers
- Demonstrated business purpose with legitimate commercial activities
- Tax identification number obtained from the Cyprus authorities
Understanding the Account Opening Procedure Step by Step
The application journey follows a structured path that meets both institutional requirements and European regulatory standards. Banks in Cyprus strictly adhere to AML directives and KYC protocols established under EU frameworks. Preparing thoroughly before approaching any institution significantly reduces delays and the risk of rejection.
Documents Required for Your Application
Financial institutions require extensive paperwork to verify corporate legitimacy and identify all individuals associated with the enterprise. The accuracy and currency of submitted materials directly affect approval timelines.
Company registration documents include:
- Certificate of Incorporation verifying legal formation
- Memorandum and Articles of Association outlining the company’s objectives
- Certificate of Directors and Secretary listing appointed officers
- Certificate of Shareholders identifying ownership distribution
- Certificate of Registered Office confirming official address
- Recent Letter of Good Standing if previously trading
Personal identification for directors, shareholders, and UBOs:
- Valid passport copies, certified and notarised where required
- Proof of residential address through utility bills dated within three months
- Professional CV summarising employment history and business experience
- Bank reference letters from existing financial relationships
Source of Funds and Wealth Documentation
Banks scrutinise the origin of money flowing through proposed accounts with considerable rigour. You must demonstrate clearly how directors and beneficial owners accumulated their wealth. Acceptable source documentation encompasses:
- Personal bank statements reflecting regular income patterns
- Employment contracts and salary confirmations
- Property sale contracts and title deeds
- Investment portfolio statements and dividend records
- Inheritance documentation with probate records
Selecting the Right Banking Partner in Cyprus
Cyprus hosts both established domestic institutions and international banks operating through licensed branches. Each offers distinct advantages depending on your transaction volumes, currency requirements, and industry sector. Making an informed choice requires weighing multiple factors beyond simple fee structures. The banking landscape was reshaped in September 2025 by the merger of Hellenic Bank and Eurobank Cyprus, creating Eurobank Limited as the island’s largest financial institution.
Major Institutions Offering Business Banking Services
Eurobank Limited, formed through the 1 September 2025 merger of Hellenic Bank and Eurobank Cyprus, is now the largest financial institution in Cyprus with total assets exceeding EUR 28 billion. The merged entity combines the extensive local branch network and SME expertise of the former Hellenic Bank with the international business banking capabilities of Eurobank Cyprus. Operating centres across Nicosia, Limassol, and Larnaca provide accessible touchpoints for relationship management. Eurobank Limited clients benefit from SEPA instant payment participation, comprehensive SWIFT connectivity, digital onboarding with video verification, and wealth management integration.
Bank of Cyprus, the island’s most established institution with total assets of approximately EUR 26.5 billion and the largest lending market share at over 43%, provides comprehensive commercial solutions including multicurrency accounts and trade finance facilities. Their conservative risk appetite means thorough documentation review, yet acceptance grants access to the island’s most extensive branch network and the eFX Convert platform for foreign exchange.
Alternative solutions include:
- Alpha Bank with specialised international business units
- EcommBX provides Electronic Money Institution services, including IBAN accounts, and is licensed and regulated by the Central Bank of Cyprus.
- Revolut Business for rapid digital onboarding, though currently issuing Lithuanian IBANs
- Wise and Airwallex are offering multicurrency payment solutions
Typical Fees for Business Accounts in Cyprus
How much does it cost to maintain commercial banking relationships? Fee structures vary considerably between institutions. SEPA transfers within Cyprus typically incur no charges, whereas international SWIFT payments incur a commission of approximately 0.05% with minimum and maximum thresholds.
Common fee categories include:
- Quarterly account maintenance ranging from €50 to €200, depending on account type
- One-time account opening charges
- Currency conversion commissions of approximately 0.40%
- Incoming international payment fees outside the EEA zone
- Statement and document request charges
Multicurrency Capabilities and International Banking Features
Modern enterprises frequently require accounts capable of handling multiple currencies efficiently. Cyprus banks meet this need through dedicated foreign-currency facilities alongside standard euro holdings. Direct SWIFT access enables cross-border payments outside the SEPA zone, while trade finance services, including letters of credit, support companies engaged in import and export activities.
Navigating Compliance and the Due Diligence Interview
Cyprus banks operate under stringent EU supervision, requiring rigorous verification of all applicants. Understanding expectations beforehand positions your company for successful approval.
The KYC and AML Assessment Framework
Know Your Customer protocols demand verification of every individual connected to your enterprise. Directors, shareholders holding significant stakes, and Ultimate Beneficial Owners must provide identification meeting European standards. The beneficial ownership threshold is 25% ownership or effective control, triggering enhanced scrutiny for individuals who meet this criterion.
Compliance officers typically verify:
- Identity documents through notarised copies or electronic verification with biometric checks
- Residential addresses using recent utility bills or government-issued documents
- Sanctions screening against the EU and UN published lists
- Politically Exposed Person status requires enhanced due diligence
- Source of wealth evidence demonstrating legitimate fund accumulation
Preparing for the Compliance Interview
Most institutions require either in-person meetings or video conferences with company representatives. Questions commonly addressed include:
- Detailed explanation of planned business activities
- Expected transaction volumes and patterns
- Primary trading partners and geographic markets
- Reason for establishing operations in Cyprus specifically
- Currency requirements for incoming and outgoing payments
Timeline Expectations and Remote Opening Options
Approval timelines vary substantially based on the complexity of the company structure and the completeness of the documentation. Traditional institutions typically require 4 to 8 weeks, though straightforward applications may proceed faster.
Can Non-Residents Open Accounts Remotely?
Increasingly, foreign entrepreneurs complete applications without travelling to Cyprus. Major institutions, including Bank of Cyprus and Eurobank Limited, offer video verification options, though final approval may still require documentary authentication through embassy channels or notarised courier delivery. Remote onboarding proves particularly valuable for digital businesses and e-commerce ventures establishing European footholds.
Successful remote applications require:
- Properly certified and apostilled documentation, where required
- Power of Attorney authorising local representatives when necessary
- Readiness for scheduled video KYC sessions with compliance officers
- English translation of all foreign-language documents by sworn translators
- Access to reliable video conferencing technology for verification meetings
Understanding Processing Timeframes
Traditional banks typically complete due diligence and approval within four to eight weeks. Simpler structures with straightforward ownership proceed faster, while complex corporate arrangements may extend beyond standard timelines. Electronic Money Institutions often approve applications within days, providing interim solutions while conventional approvals are processed.
Industries Facing Enhanced Scrutiny
Certain business sectors trigger additional due diligence requirements from Cypriot banks:
- Cryptocurrency and digital asset trading platforms
- Forex brokerage and trading operations
- Online gaming and betting enterprises
- Payment processing and money transfer services
- Marketing affiliate programmes
- Adult content and related entertainment sectors
How C. Savva & Associates LTD Supports Your Banking Application
Establishing business banking relationships in Cyprus demands meticulous preparation and a thorough understanding of regulatory expectations. Our team at C. Savva & Associates LTD creates comprehensive AML/KYC files tailored to specific institutional requirements, significantly reducing the risk of rejection and accelerating approval timelines.
Our services encompass:
- Cyprus company formation with proper substance establishment
- Personal tax residency under the attractive 60-day non-domicile regime, which provides exemption from Special Defence Contribution on dividends and interest for the first 17 years of Cyprus tax residence, with the option to extend for two additional five-year periods
- AML/KYC file preparation for both account opening and EU investments
- Tax and financial management, including cryptocurrency advisory (profits from crypto-asset disposals are taxed at a flat 8% rate under the 2026 reform)
- Immigration solutions, including Cyprus and Greek permanent residency
- Alternative investment fund registration and administration
Cyprus remains a premier European jurisdiction for international business. The 15% corporate tax rate, effective from 1 January 2026, remains competitive when assessed alongside the extensive exemptions, the IP Box regime, the Notional Interest Deduction, and the network of over 65 double taxation treaties. The abolition of Deemed Dividend Distribution and the reduction of SDC on dividends to 5% further enhance the jurisdiction’s attractiveness for profit distribution. For new company owners seeking to establish a robust financial foundation, professional guidance through the account-opening process is invaluable. Contact our team to discuss your specific requirements and position your enterprise for success in this dynamic business environment.