Why Cyprus Attracts Affluent Clients
Cyprus has become a preferred destination for high-net-worth individuals seeking sophisticated financial solutions within the European Union. The island’s banking sector is supervised by the European Central Bank under the Single Supervisory Mechanism, offering stability that resonates with affluent clients worldwide. The country houses around 19 licensed credit institutions, including major local banks and subsidiaries or branches of international banking groups, creating a robust environment for wealth management.
Key Advantages for Wealth Holders
Several factors draw wealth holders to Cyprus’s private banking services:
- Strategic Mediterranean location bridging Europe, Asia, and Africa
- Competitive 15% corporate tax rate (effective 1 January 2026), with extensive exemptions that reduce effective rates significantly below the headline figure
- Network of over 65 double taxation treaties facilitating international transfers.
- English-speaking professionals experienced with international clientele.
The 60-day rule for establishing personal tax residency makes Cyprus particularly attractive. Under this provision, a foreigner can become tax-resident by staying in the country for just 60 days annually, provided they meet several additional conditions, including not being tax-resident in any other country and maintaining a permanent residence and business or employment in Cyprus.
The non-domicile regime remains one of the most attractive onshore personal tax arrangements internationally. Non-domiciled tax residents are fully exempt from the Special Defence Contribution (SDC) on dividend and interest income. This exemption applies for the first 17 years of Cyprus tax residence; under the 2026 reform, individuals who have completed 17 years may extend their non-domicile status for two additional five-year periods by paying a lump sum of €250,000 per period. Capital gains from the disposal of securities are exempt for all taxpayers, regardless of domicile status.
The 2026 tax reform also introduced changes that benefit HNW individuals holding Cyprus company structures. The Deemed Dividend Distribution mechanism has been abolished for profits earned after 2026, allowing companies to retain earnings without triggering automatic shareholder taxation. When dividends are distributed, the SDC rate for domiciled individuals has been reduced from 17% to 5%, significantly improving the efficiency of profit extraction.
How Much Capital Opens the Door
Understanding the entry requirements for private banking helps prospective clients plan accordingly. How much do you need to qualify for private banking? Thresholds vary considerably between institutions and service tiers across the local market.
Entry-Level Requirements
Standard Private Bank Accounts
Most institutions accept clients with liquid assets of between €250,000 and €500,000. This tier provides dedicated relationship management and customised deposit products tailored to individual circumstances and financial goals.
Premium Wealth Tiers
For clients with €1 million or more in assets, banks unlock additional capabilities. Discretionary portfolio management, access to alternative investments, and bespoke lending solutions are available at these higher service levels.
Ultra-High Net Worth Services
Thresholds starting at €5 million grant access to family office services, succession planning, and exclusive investment solutions typically reserved for institutional investors.
Leading Institutions for HNW Clients
The Cyprus banking landscape underwent a significant transformation in September 2025 with the completion of the Eurobank and Hellenic Bank merger, reshaping the competitive landscape for private banking services.
Market Position Comparison
Eurobank Limited, the entity formed through the 1 September 2025 merger of Hellenic Bank and Eurobank Cyprus, is now the largest financial institution in Cyprus by total assets. The merged bank holds assets exceeding €28 billion, with customer deposits of approximately €23 billion and a loans-to-deposits ratio of around 38%. Eurobank Limited combines the deep local market presence of the former Hellenic Bank with the international banking capabilities of Eurobank Group, which operates across Cyprus, Greece, Luxembourg, and the United Kingdom.
Bank of Cyprus remains a dominant force in the market, with total assets of approximately €26.5 billion and the largest lending market share at over 43%. The institution has operated since 1899 and maintains the island’s most extensive branch network, with strong brand recognition throughout the region.
Alpha Bank Cyprus has approximately €4 billion in total assets and provides retail, corporate, and investment banking services as part of the Alpha Bank Group.
The banking sector has strengthened considerably since the 2013 crisis. Asset quality metrics now compare favourably with European averages: Bank of Cyprus reports a non-performing exposure ratio of 1.2%. In comparison, Eurobank Limited reports a 2.3% capital adequacy ratio, and capital adequacy ratios exceed Eurozone averages across all major institutions.
Award Recognition
Which is the best private bank in Cyprus? Recent recognition provides helpful guidance. Bank of Cyprus secured “Best Private Bank Cyprus 2025” recognition from Global Banking & Finance Review, reflecting its long-standing market position and the strength of its PrivilEDGE programme. Eurobank received multiple Euromoney Private Banking Awards in 2025, including recognition for its international private banking capabilities and services for ultra-high-net-worth clients.
Bank of Cyprus Private Banking Solutions
The PrivilEDGE programme represents Bank of Cyprus’s flagship offering for affluent clients. This personalised financial service platform has redefined customer service for high-net-worth individuals across the market.
PrivilEDGE Programme Features
Core Benefits
Members receive:
- Personal banker assignment for ongoing financial guidance
- Access to Wealth & Markets Division professionals
- Premium investment instruments and strategic planning support
- Exclusive asset management terms and lifestyle benefits
Bank of Cyprus has received Euromoney’s “Best for High-Net-Worth Individuals” recognition for multiple consecutive years, demonstrating consistent service quality.
Private Banking App Access
Digital platforms enable clients to monitor accounts, make payments, and access investment services via secure applications. The 1bank platform provides comprehensive online banking capabilities, while dedicated wealth portals offer portfolio analysis functionality.
Eurobank Limited Wealth Management
Eurobank Limited, following its merger with Hellenic Bank, combines extensive local market coverage with the international wealth management capabilities of the broader Eurobank Group. The group’s wealth management division operates across Cyprus, Luxembourg, Greece, and the United Kingdom, providing cross-border solutions for affluent and institutional clients.
Service Categories
Wealth Division Segments
The bank structures offerings across distinct segments:
- Affluent Banking for clients with established deposits
- Private banking providing investment services for HNW individuals
- Institutional Asset Management for corporate and fund clients
- Global Markets access for sophisticated trading requirements
Eurobank Wealth Portal
The Wealth Portal enables digital portfolio management with real-time order placement across stocks, ETFs, bonds, and mutual funds. Clients can monitor performance analysis through this comprehensive platform.
Investment Services and Portfolio Management
Cyprus-based banks offer a range of investment options suited to different risk appetites and return objectives. Most private banking relationships begin with developing an investor profile questionnaire and establishing individual goals.
Available Investment Categories
Typical Client Access
Clients typically access the following:
- Investment-grade bonds from European and international issuers
- Mutual funds, including UCITS structures managed locally
- Exchange-traded funds providing broad market exposure
Discretionary Versus Advisory Management
Under discretionary management, the bank makes investment decisions within agreed parameters. Advisory relationships require client approval for each transaction, enabling greater control over personalised financial choices.
Family Office and Estate Planning
Wealthy families often require coordinated solutions spanning generations. Cyprus offers particular advantages for estate planning and succession arrangements through its International Trusts regime.
Cyprus International Trusts
These structures provide asset protection while allowing flexible distribution arrangements. Trusts may hold diverse assets, including company shares, real property, and investment portfolios. Combined with private bank relationships, they create structured approaches to generational wealth transfers.
Multi-Generational Planning Support
Family office support addresses needs beyond basic banking:
- Coordination between legal, tax, and banking advisors
- Consolidated reporting across asset classes and jurisdictions
- Next-generation education regarding wealth stewardship
When legal guidance is required for trust formation or estate structures, Nicholas Ktenas & Co. LLC, our partner law firm, provides appropriate professional support.
Digital Banking and Accounts Access
Modern private banking in Cyprus combines personal relationship management with sophisticated digital capabilities. Most institutions now offer applications that provide comprehensive access to accounts.
Mobile Platforms and Security
Bank of Cyprus clients access 1bank for everyday transactions, while wealth clients use dedicated portals for investment monitoring. Security features include push notification authentication for payments and transfers.
International Payment Capabilities
SWIFT and SEPA transfers are processed efficiently through Cyprus institutions. As Eurozone members, local banks handle euro transactions without currency conversion. Multi-currency accounts accommodate clients with obligations in USD, GBP, and other major currencies.
Deposit Protection and Safety
How much money do I need to open a private banking account? While entry thresholds matter for service access, understanding deposit protection clarifies the overall safety framework.
EU Deposit Guarantee Scheme
Coverage Details
Cyprus participates in the harmonised European deposit protection system. The Deposit Guarantee and Resolution Scheme protects deposits up to €100,000 per depositor, per credit institution. This coverage applies automatically.
For joint accounts, the limit applies separately to each account holder. Real estate transaction proceeds receive temporary enhanced protection up to €300,000 for twelve months.
Repayment Process
Should a credit institution fail, the scheme provides reimbursement within seven working days. All licensed credit institutions in Cyprus participate in this arrangement, which the Central Bank of Cyprus supervises.
How C. Savva & Associates Can Assist
C. Savva & Associates provides guidance for international clients seeking Cyprus wealth structuring opportunities.
Our Service Areas
We assist with establishing personal tax residency under the 60-day non-domicile regime; Cyprus and Greek permanent residency applications; AML/KYC file preparation for bank account opening and investment activities; company formation with appropriate substance requirements; Alternative Investment Fund establishment; and the creation of a Cyprus International Trust for asset protection.
Our cryptocurrency tax services support clients with primarily digital asset wealth. Under the 2026 reform, profits from the disposal of crypto-assets are taxed at a flat 8% rate, providing clarity for digital asset investors. For matters requiring legal advice, Nicholas Ktenas & Co LLC, our partner law firm, provides appropriate professional support throughout the process.