With a sophisticated financial infrastructure, expats should find banking in Cyprus to be a relatively easy process. The island is home to several reputable banking institutions, both local and international.
Money in Cyprus
The official currency of Cyprus is the Euro (EUR), subdivided into 100 cents.
The following denominations are available:
Notes: 5 EUR, 10 EUR, 20 EUR, 50 EUR, 100 EUR, 200 EUR and 500 EUR
Coins: 1c, 2c, 5c, 10c, 20c and 50c and 1 EUR and 2 EUR
Banking in Cyprus
ATMs are widespread in Cyprus and can be found in most towns and large villages. Online banking is widely available. Banks in Cyprus are generally open Monday to Friday, 8.30am to 1.30pm.
Opening a bank account in Cyprus
Opening a bank account in Cyprus is easy, even for expats. The process can be started from abroad, though expats must visit a branch in person to finalise the account.
Expats will need numerous documents to open an account, including:
Proof of identity, such as a passport
Proof of address, such as a recent utility bill or bank statement
A reference letter from the applicant’s previous bank giving information about their credit rating
Taxes in Cyprus
Expats are considered residents if they reside in Cyprus for 183 days or more in a calendar year. Tax residents pay tax on both locally and globally generated income, while those not considered tax residents pay tax only on income derived from within Cyprus.
Cyprus has double-taxation agreements with a number of countries, meaning that expats from these countries won’t have to pay tax in their home country in addition to taxes in their new host country.
Taxation is a complex issue – especially for expats in Cyprus. As such, they should seek the advice of a qualified tax advisor or accountant in Cyprus.