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Cyprus Savers Continue To Receive Among Eurozone’s Lowest Deposit Rates

Cyprus’ savers continued to receive some of the eurozone’s lowest deposit rates in September 2026, despite a monthly increase in returns. Borrowing costs, meanwhile, remained broadly comparable with those elsewhere in the currency bloc, according to the Central Bank of Cyprus (CBC) and the European Central Bank (ECB).

The gap reflects the high liquidity in Cyprus’ banking sector, which limits banks’ need to compete for deposits and weakens the pass-through of market-rate changes to savers.

Deposit Rates Remain Below Eurozone Levels

The average rate on new household deposits with a maturity of up to one year rose to 1.62% in September, from 1.35% in August. For businesses, it increased from 1.56% to 1.70%.

However, both rates remained among the lowest in the eurozone. Cyprus’ Liquidity Coverage Ratio reached 305%, compared with an EU median of 182%, highlighting the banking sector’s substantial liquidity.

By contrast, changes in monetary policy rates have been passed on to borrowers broadly in line with other eurozone countries.

Borrowing Costs Show Mixed Trends

The average rate on new housing loans in Cyprus fell to 3.88% in September, from 4.16% in August, placing it below the eurozone median. Consumer loan rates also declined, from 7.12% to 6.45%.

Business borrowing became more expensive. Rates on new loans of up to €1 million rose to 4.76%, while those exceeding €1 million increased to 4.40%.

Across the eurozone, the average cost of new business borrowing increased to 3.90%, while housing loan rates remained broadly unchanged at 3.62%.

New Lending And Borrower Preferences

Pure new lending in Cyprus more than doubled in September, reaching €596.2 million, compared with €251.4 million in August. The increase was particularly strong in business loans exceeding €1 million, which rose to €376.7 million from €77 million.

The CBC also reported a shift away from variable-rate borrowing. Their share of new housing loans fell from almost 100% in early 2022 to 9.8% in September 2026. Across new lending to households and businesses, the proportion declined to 73.8%.

Deposit Returns Remain The Main Gap

September’s figures highlight the imbalance in Cyprus’ banking sector: borrowing costs broadly reflect eurozone trends, but savers continue to receive relatively low returns. Despite recent increases, substantial bank liquidity means deposit rates remain well below those available elsewhere in the currency bloc.

Cyprus Company Registration: Two To Four Days, Unless Security Checks Intervene

Cyprus aims to register companies within two to four working days when applicants submit complete documentation. However, regulatory approvals, sanctions checks, foreign ownership and national security considerations can extend the process or prevent registration.

Energy, Commerce and Industry Minister Michael Damianou outlined the timeframe in a written response to MP Efrem Christou, who asked about company formation procedures and the checks required before approval.

Fast Registration Depends On Complete Documentation

Damianou said authorities seek to process complete applications within two to four working days, regardless of a company’s structural complexity. The timeframe also depends on whether applicants pay an additional fee for expedited processing.

According to the official incorporation requirements, the standard registration fee is €165, rising to €235 for companies without share capital. Expedited processing costs an additional €100.

Applicants must submit an approved company name, a memorandum and articles of association, and forms HE1, HE2 and HE3. Public companies must also provide form HE5.

Regulated Businesses Require Additional Approval

Companies operating in certain sectors must obtain prior clearance from the relevant authorities or professional bodies. These include medical and dental businesses, law firms, insurance and reinsurance companies, and firms supervised by the Cyprus Securities and Exchange Commission.

The Central Bank of Cyprus must also approve company names associated with payment institutions, electronic money and foreign exchange services. Additional restrictions apply to educational institutions using terms such as “university” or “college”, casino operators, broadcasters and wine producers.

Non-profit organisations seeking to register without “Limited” or “Ltd” in their names also require ministerial authorisation.

Sanctions And Foreign Ownership Trigger Extra Checks

Applications involving shareholders, directors or company secretaries subject to EU, UN or US sanctions receive additional scrutiny. Registration can proceed only if the competent sanctions authority does not prohibit it. Damianou noted that US sanctions are considered indirectly but have not been incorporated into Cyprus legislation in the same way as EU and UN restrictions.

Applications involving Turkish interests are also subject to additional review. Under procedures introduced around 20 years ago, the registrar must consult national security services before proceeding with registrations involving Turkish interests or businesses that could threaten the Republic’s security.

Damianou distinguished these cases from applications submitted by Turkish Cypriots, saying there is “no substantial difference” in how their registration documents are examined. Applications may nevertheless be refused if classified information raises concerns about national interests or national security.

Public Servants Face Separate Restrictions

Under Article 65 of the public service law, government employees cannot act as directors, company secretaries or shareholders in private or public companies without prior special permission from the finance minister.

Proposed Law Would Expand Registrar’s Powers

The government is also seeking to strengthen the Registrar of Companies’ authority to address potential security risks. An amendment to the companies law, submitted to Parliament on September 17, would allow the registrar to reject applications, refuse company filings or remove existing businesses from the register on grounds including national security, public order, public interest and the protection of state sovereignty.

The proposal, approved by the Council of Ministers on August 6, remains before the House commerce committee. It would allow authorities to withhold detailed justifications where disclosure could reveal sensitive information, while informing affected companies of the general grounds for decisions.

The bill follows parliamentary discussions about companies controlled by non-EU nationals, particularly those with Turkish ultimate beneficial owners, and possible implications for property ownership through foreign-controlled businesses. Further details are available in the proposed amendment and earlier parliamentary reporting.

Balancing Investment And Oversight

Cyprus is seeking to maintain an efficient company registration process while strengthening checks on ownership, sanctions compliance and potential security risks.

The two-to-four-day target supports the country’s appeal to entrepreneurs and international investors, but the actual timeline depends on the nature of the business, the documentation submitted and any additional regulatory or security reviews required.

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