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Discussion Starter · #1 ·
Hi , finally living the dream in Cyprus , went to open an account at Hellenic bank , they said we had to pay 35% of our balance to the government i.e put a 1000 euro in 350 euro to the government is this correct ? What other banks do people recommend ? Thanks
 

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Hi , finally living the dream in Cyprus , went to open an account at Hellenic bank , they said we had to pay 35% of our balance to the government i.e put a 1000 euro in 350 euro to the government is this correct ? What other banks do people recommend ? Thanks
You have been told utter nonsense! I am with Hellenic, and made my latest transfer a few days ago. ALL funds transferred into my account. Government gets nothing!
 

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I've no idea why they were asking this and have never heard of a similar situation.

There are only a few banks so you might try them all. You will get recommendations and warnings on all the banks on here depending on people's experience. Personally I'm reasonably happy with the service I get from Bank of Cyprus and would be cautious of Alpha Bank who may not be around for long.

Pete
 

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Alpha bank CYPRUS bought out the Emporikie bank. Alpha Bank is the safe with over €60 million as reserves. No charges for opening an account.:)
 

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Re the 35% , do you think they could have been referring to defence tax . This is payable at all banks in Cyprus , but only on interest . No bank in the world could get away with charging 35% on balances without a mass exit of customers . Although I think the current rate for defence tax is 30% .

I am with Hellanic , have been since we got here , no complaints , a good bank .
 

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This is total nonsense, are you sure you did not mishear something? There is, as others have said, no such requirement.

If you are unsure about having a bank account here, and don't need one for immigration purposes, you could open a Euro account with a UK bank, preferably offshore. Then you can use both credit and debit cards in Cyprus (and the rest of Europe) without any problem at all and no charges, at the same time having confidence that you are holding your funds in a more secure economic environment. You would also be free to top up your Euro balance by transferring £'s as and when the rate is favourable, assuming you still have a UK Sterling account where pension receipts etc. can be made.

This is what I do and it works perfectly.
 

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We opened a bank account with the Bank of Cyprus & we were told that if we were not resident in Cyprus within the end of the year we would get 30% took from the amount we had in the bank but they gave us form to complete
(NON CYPRUS RESIDENT) which we did complete and nothing was took from our account. You complete these forms every year till you become resident. We move over this October.
 

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We opened a bank account with the Bank of Cyprus & we were told that if we were not resident in Cyprus within the end of the year we would get 30% took from the amount we had in the bank but they gave us form to complete
(NON CYPRUS RESIDENT) which we did complete and nothing was took from our account. You complete these forms every year till you become resident. We move over this October.
This can't be true either. The defense tax is taken on the interest, not the balance. Something is very fishy. The banks can't do their own haircut, the state one turned out to be 37% if I remember correc.

I am sure everyone would cancel such account, and Cyprus banks dont need less customer putting money in the banks, when they have 50% NPL to worry about
 

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gasman I think it is a matter of the Cypriots being terrible at explaining things. Were you looking to open an investment account?
If so then you would pay 3.5% on any interest made to the government for their armed services.

We find time after time that the way Cypriots explain things can lead to big misunderstandings.
 

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Baywatch your correct its off the interest, my husband has just said that to me. Sorry Janet
This can't be true either. The defense tax is taken on the interest, not the balance. Something is very fishy. The banks can't do their own haircut, the state one turned out to be 37% if I remember correc.

I am sure everyone would cancel such account, and Cyprus banks dont need less customer putting money in the banks, when they have 50% NPL to worry about
 

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Discussion Starter · #12 ·
Hi Veronica , no just a normal bank account , either it's been explained wrong or I misunderstood , I believe now it's 35% of the interest which amount to not many cents providing you do not keep a large balance in your account , thanks everyone for the advice
 

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Hi Veronica , no just a normal bank account , either it's been explained wrong or I misunderstood , I believe now it's 35% of the interest which amount to not many cents providing you do not keep a large balance in your account , thanks everyone for the advice
It won't be many cents even if you keep a fortune in there at the rates offered on current accounts.

;)

Pete
 
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