Benefits of Opening a Cyprus Offshore Bank Account

Cyprus’s success in becoming one of the world’s primary offshore centers for trading, investment, and shipping activities causing it to become one of the top locations for offshore banking – thanks to its well-regulated banking system. Established offshore banks in Cyprus offer multi-currency trading and investment accounts with full operation via walk-in, internet, or telephone. Cyprus offshore banks also provide debit cards that provide global access to Cyprus offshore bank account. One of the core characteristics of a Cyprus offshore account is that the bank usually accepts applications with introductions, normally conducted by intermediaries with whom an IBC is formed, for which the account name will be in. An offshore bank account may be held by a person who travels worldwide, has an international business company, or operates an offshore account for other reasons.

Offshore Banking Units (OBUs) operate as fully staffed entities. They are licensed to transact banking business with non-residents of Cyprus, in currencies other than the Cyprus Pound. They may also engage in banking activities with the Central Bank of Cyprus or with onshore banks, which are authorized, foreign exchange dealers.

There are two types of offshore banking in Cyprus

1. Offshore banking using physical banks in Cyprus

2. Offshore online banking using Electronic money institution

Offshore banking using physical banks: This involves opening an offshore account with a traditional bank with physical offices and structures in Cyprus. These banks offer a suite of elite and tailored services to their customers, including banking, investments, and financial services from their location.

The principles of this type of offshore banking are related to the high quality and level of services extended to the client. These banks usually have a sound reputation in banking and extremely strict confidentiality rules. Among their many benefits also include a lower base cost of operating the offshore account, which translates into more affordable banking options and higher earnings on investment as well as greater access to international investment opportunities. Interestingly, most offshore banks also offer online banking services where 24/7 operation can be carried out by their customers.

Offshore online banking using Electronic money institution: This kind of offshore banks are second to the type offered by physical banks and are run by Electronic Money Institutions (EMI). They offer access to offshore banking facilities through the internet and carry out banking transactions and other activities on that offshore account. Offshore online banking is an absolute necessary auxiliary service in offshore banking. This kind of offshore online banking allows the client to maintain control of the finances from anywhere in the world at any time. It also provides immediate and instant access to check account balances, open or closed transactions, facilitate money transfers, make bill payments, global payments, check credit, and debit card activity.

This issue with this kind of account, however, is that periodic upgrades are normally conducted to make better and newer services available to the client but may slow the process until the client is once again familiar with the interface. Things like this hinder a client’s productivity, Confidence in online services. Clients may be wary of trusting their information to online processes. However, physical banks ensure that such services are wholly secure and will maintain the client’s privacy and protect client information.

Cyprus Offshore Account Opening Requirements

For an offshore account, the following documents are required:                                         

  • Duly certified copies of certificate of registration
  • Memorandum & articles of association
  • Registers of directors and shareholders
  • The registered address of the company
  • Certificate of good standing (if the company has been in existence for more than six months; company resolution and power of attorney to open an account)

The following documents are required by company shareholders:            

  • A duly certified copy of passport;
  • An original recent utility bill
  • An original reference letter from your current bankers   

All documents must be in English or with an official translation into English.

Benefits of Opening an Offshore Bank Account

  • High-level confidentiality – bank secrecy in Cyprus is reinstated by statutes. Authorities have access to bank information in specific situations only for tax matters, where the tax treaty allows for) or where a court order is present
  • Multiple currency accounts – you can serve your transactions in USD, GBP, and EUR, as well as in many other currencies (information is available at request)
  • Full range of payment solutions – accounts in several currencies, Internet banking, international wire transfers, payment cards, cheques credit, trade finance, credit facilities
  • Full operative secure Internet banking facilities, with no need to install specific software on your personal computer
  • Wide choice of payment cards including prepaid debit cards with high spending limits
  • Multilingual customer service
  • Companies and clients from any country, including newly formed companies from lot-tax jurisdictions and tax havens are welcome.
  • No personal visit to the bank in Cyprus is required to open a bank account;
Published on: 09/07/20