Guide to Opening a Business Account in Cyprus for US Entrepreneurs

Cyprus combines access to the EU market, an attractive tax regime and transparent and business friendly government policies, making it an excellent choice for US entrepreneurs looking to expand into Europe. If you’re thinking of opening a Cypriot business you’ll also need to have a business account to manage your money and transactions in EUR without incurring high conversion costs.

This guide looks at some key options and the process to open a business account in Cyprus for US entrepreneurs. We'll also discuss the Wise Business account. The global account that can help your company with all things cross-border.

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Why Open a Business Account in Cyprus?

Opening a business in Cyprus is a popular choice for many entrepreneurs looking to break into the European market. Cyprus actively works with incoming investors to support business foundation, and offers an attractive business environment with low costs, strong regulations to protect business owners, access to talent from around the world, and a favourable tax regime. It’s also a popular place to live and work, with English widely spoken, and a common language of business.

Benefits for US Businesses Expanding Internationally

The EU and US have the largest bilateral trade and investment relationship, with their combined GDP adding up to over 40% of the global total¹. This strong relationship makes the EU a smart place to expand your business activities into a large, sophisticated and varied market - much of which uses the same currency and has common regulatory frameworks to streamline business administration and demands.

Once established in an EU country like Cyprus, market access to the rest of the EU and other European countries like the UK can be far easier, increasing expansion opportunities further.

Cyprus: A Gateway to European Markets

Invest in Cyprus² states that Cyprus is increasingly chosen by multi-national and expanding businesses as a place to base operations while reaching into the EU and other regional markets. It’s a business friendly environment which actively promotes entrepreneurial activities, and is already a hub for financial services, tech and shipping.

To successfully trade in Cyprus you’ll need a local bank account, or a business account from a specialist provider, which lets you send and receive EUR payments, to avoid the need to convert to and from USD unnecessarily. This guide explores what your options may be.

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Understanding the Cyprus Business Account Process for US Citizens

As a business owner moving into the Cypriot market, getting a EUR business account will be a priority. The application process and requirements may not be familiar, but there are many service providers who can help you navigate this step if you need them.

Key Requirements for US Entrepreneurs

Opening a Cypriot business bank account can be fairly complex and demanding. For US business owners this can be more complicated as the system is unfamiliar, which is why many people choose to use a local lawyer or corporate service provider (CSP) to support their application.

Generally you will be asked for a suite of supporting documents, which can vary but often includes³:

• Memorandum and Articles of Association certified by Companies Register
• Certificates of Company Incorporation, Registered Office, Directors & Secretary and Shareholders
• Registration Receipt for Beneficial Owner Register
• Identification for Beneficial Owners, key business controllers, representatives and legal representatives
• Proof of business address
• Recent Audited Accounts
• Resolution of the Board of Directors authorizing the account

You can also expect to be asked for more information so the bank can comply with the US Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standard (CRS).

Navigating Local vs. Digital Banking Options

We’ll look at a couple of popular local Cypriot banks which offer business account services in a moment - but it’s also good to know that using a local or regional EU bank isn’t your only option. You may also like to use a digital business account from a specialist provider like Wise Business.

Local banks will require you to have a business registered in Cyprus, and often need you to attend a meeting in person or using a professional intermediary. This may not be a practical option, particularly if you’re still testing the water and not completely committed to Cyprus as your EU base as yet.

In this case, a provider like Wise Business could be a great alternative to allow you to send, receive, hold, spend and exchange Euros without needing a Cypriot registered business or residential address. We'll dive into why Wise can be a good option for US entrepreneurs moving into the Cypriot and EU market a little later on.

Step-by-Step Guide to Opening Your Cyprus Business Account

If you’re already on the journey to setting up shop in Cyprus, you’ll need to get your Cypriot business account sorted as a priority. While different services do have their own application processes, they tend to follow a similar pattern. Here’s a rundown.

Step 1: Research and select banks or providers which may meet your needs

Selecting the best business account in an unfamiliar market can be a challenge, and requires some research to make sure your final pick works as well as possible for your needs. We cover a couple of common options for Cypriot banks a little later in this guide - plus you can also compare specialist services like Wise Business if you prefer.

Step 2: Gather the documents needed to apply

All banks and financial service providers need to complete verification steps before offering you an account - which means submitting a suite of supporting documents as part of your application. Contact your preferred bank or provider to ask which documents are needed for your entity type and account, which can include ID documents, business paperwork and details of all your ultimate beneficial owners.

Step 3: Apply online or in person

It is very common to be asked to attend a bank branch in person when opening a business bank account in Cyprus. This is the case even if you upload digital versions of supporting documents as part of your initial application, as bank staff may need to view the originals before signing off your account. If you’d prefer a fully digital application process, take a look at digital first services like Wise Business instead.

Step 4: Upon approval get account collateral and start to transact

The bank or provider will check your documents, and may need to request additional information or paperwork. Once everything is approved you can get your account collateral like a debit or expense card, and start to transact.

Common Challenges and How to Overcome Them

Although every business has a different expansion plan, there are a few common challenges which many experience.

Avoiding Hidden Fees and Unfavorable Exchange Rates

If you run a company across more than one country or currency you will need to find ways to optimise the currency exchange costs applied. It’s important to note that the costs of converting from USD to EUR (or any other currency) aren’t always obvious. Fees may be included in the exchange rates you’re quoted by your bank - known as adding a markup or margin. As this is a percentage charge added to your exchange rate it can add up very quickly when transacting in high values for your company.

Look out for providers which don’t add a markup - such as Wise, which uses the mid-market rate and splits out the costs of conversion as a separate fee so you can see exactly what your transactions are costing you before you proceed.

Streamlining the Remote Account Opening Process

The other common issue is the account opening process which typically requires an in person appointment at a bank. You can usually use a professional intermediary such as a company formation agent, but this is a service which can come with high fees. As an alternative, digital services like Wise Business can help you manage your money in euros as well as dollars as you transition to trading in Cyprus.

Traditional Banking Options in Cyprus

If you’ll need the services of a local bank - to deposit cash or get a loan for example - you have a few different options to choose from. Here are a couple to consider when you do your research.

Bank of Cyprus

Bank of Cyprus⁴ offers business customers either an easy access account with a check book and debit card, or a savings account which is still easy access but may earn you a better rate of return on your unused cash. To open an account you’ll need to visit a branch in person, or you can use an agent as a proxy.

Hellenic Bank/Eurobank Cyprus

Hellenic Bank recently merged with Eurobank Cyprus and now offers business accounts and services through the Eurobank brand⁵. You can open a business current account for day to day money management which has a linked debit card and optional overdraft, as well as applying for working capital and industry specific products and services.

Save Time and Hassle With Wise Business

Wise is not a bank, but a Money Services Business (MSB) provider and a smart alternative to banks. Wise makes it easy to send, hold, and manage business funds in currencies. You can get major currency account details for a one-off fee to receive overseas payments like a local. Simply add the local account details when billing international customers to receive international payments with no fees.

Account opening is 100% online, with no need to visit a branch or book appointments.

Once you’re set up, you can connect to software such as Wave, FreshBooks, and more. You can also withdraw funds from Stripe without currency conversion fees.

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