Barclays

Your guide to expatriate banking services in Cyprus

Introduction

Cyprus is divided into the internationally recognised Greek Cypriot-controlled Republic of Cyprus (Southern Cyprus) and the self-declared Turkish Republic of Northern Cyprus, recognised only by Turkey.

Cyprus has been a member of the EU since 2004, and the official currency in Cyprus is the euro.

The official language of Cyprus is Greek, but English is also widely spoken as the second language.

Banks

Central bank

• Central Bank of Cyprus

Commercial banks in Cyprus

• Bank of Cyprus
• Hellenic Bank
• Laiki Bank
• Universal Bank

Bank opening times

Typical banking hours are 8.15am to 1pm Monday to Friday, and 3pm to 5.30pm (Mondays only). Some branches in tourist areas offer an afternoon service on Tuesdays to Fridays from 3.30pm to 6.30pm. International banks are generally open from 8.30am to 5.30pm.

Banking services in Cyprus

The banking system in Cyprus is well developed, and both internet and phone banking are widely offered. In recent years, banks have extended their services to include insurance, leasing, hire-purchase finance and investment advice and products.

The main types of bank account in Cyprus

In general, the Cypriot banks offer the standard banking services and accounts that are found in the UK. The main types of bank accounts offered are:

• Current accounts - used for daily banking, they typically offer low rates of interest but with easy access to funds. Current accounts may include an ATM/debit card, a chequebook and possibly a credit card on request.
• Savings accounts - generally offer higher rates of interest than current accounts, but may have limited access to funds, and interest penalties may be incurred for making withdrawals. Savings accounts may offer either fixed or variable rates of interest, and may be fixed for a period of time (e.g. two years).
• Deposit accounts - typically offer higher interest rates than current or savings accounts, but access to funds may be limited or not available until the maturity date of the account. Deposit accounts may not be suitable if you require regular access to your money.

Cypriot banks may offer customers accounts in a range of foreign currencies.

Opening a bank account when you arrive in Cyprus

To open an account with a bank in a Middle East country, you will need to provide a range of official documentation to prove your personal identification. Typically, accepted forms of documentation include your passport, residence permit (if applicable), recent utility bill, a reference from your employer, bank statements and references from your current bank.

Opening a bank account before you arrive

You can open a bank account before arriving in the country via an overseas branch of any Cypriot bank (or one of the many foreign banks operating in Cyprus) subject to your signature and personal identification being verified.

Another option is to open an international account before you move to Cyprus, which gives you access to a wide range of international banking services. These include secure online banking and offshore banking options, in addition to facilities such as international payments and money transfers and accounts in a range of foreign currencies (including sterling, euro and US dollars).

An international account can help you make a smooth transition from a domestic to an international bank account.

Credit and debit facilities

Debit and credit cards are widely accepted in cities, hotels, shops and petrol stations, but in more rural areas cash is the preferred or only available form of payment. Debit card cash withdrawals are usually subject to a daily limit (and a charge of up to 2%), whilst credit card cash withdrawals can attract considerably higher charges. The use of cheques in Cyprus is largely limited now to those issued by businesses, due to the extensive use of electronic payments.

Money transfers to and from Cyprus

There are many bureau de change in Cyprus, typically with longer business hours than banks (particularly at weekends). Most offer competitive exchange rates and low or zero commission, and you can also usually negotiate a better exchange rate for larger transactions.

Some of the most competitive rates may still be found at banks, and they may be flexible with fees if you are making substantial transfers.

Currency regulations

There are currently no restrictions on the value of currency being imported or exported, providing the following conditions are met:

• For currency moving inside the EU, amounts exceeding €12,500 EUR or equivalent must be declared to Customs
• For currency coming from outside/leaving the EU, amounts exceeding €10,000 EUR (or equivalent) must be declared to Customs

Regulations relating to the import and export of currencies are subject to change. Check with the national bank for the latest rules.

SEPA
Cyprus is part of the Single Euro Payments Area (SEPA) initiative. This is a zone for the euro in which all electronic payments are considered to be domestic, making them simpler and cheaper. By the end of 2010, SEPA payments will be the main form of electronic payments, replacing all other payments within the zone by 2011.

Bank charges

Cypriot banks may charge for some of their services, but there is competition between banks to attract new customers, so keep an eye open for special deals and rates for new customers.

Banking in Cyprus - other information

How numbers are written in Cyprus

• One million is displayed as 1.000.000 (instead of the UK format of 1,000,000).
• Eight and a half percent is displayed as 8,5% (instead of the UK format of 8.5%).

Cypriot ombudsman
If you have any complaints or issues with a bank in Cyprus, you should contact the central bank at www.centralbank.gov.cy.

More information on banking with Barclays International

For further information regarding international banking from Barclays International, you can speak to a specialist adviser on +44 (0)1624 684316†.

Alternatively, visit Barclays International online, and find out more about the range of expat banking and online banking services that are offered to expatriates living or working in Cyprus.