Private loans, debts and letters to a bank in Cyprus
A loan between private individuals in Cyprus is a contract under the Contract Law (Cap. 149), and since stamp duty was abolished from 1 January 2026 (Law 239(I)/2025), neither the agreement nor a receipt needs stamping. The parties set the interest, with one limit: article 314A of the Criminal Code makes it an offence for anyone other than a credit institution to agree or take interest above the reference rate the Central Bank of Cyprus calculates every quarter. The loan agreement between private individuals records the sum, the repayment schedule and the interest, or that the loan is interest-free, and a receipt for money paid between private individuals leaves a record of each cash payment.
A contract claim is time-barred after six years (Law 66(I)/2012), but a written acknowledgement by the debtor before the period runs out interrupts it, and the time starts again. An acknowledgement of debt and repayment undertaking does that and sets an instalment schedule. Before suing for a sum of money, the Civil Procedure Rules in force since September 2023 expect a letter of claim with the facts, the documents and the amount, which the debtor answers in writing within 14 days, with sanctions in costs for whoever ignores the step; the final demand before legal action is that letter. When both sides agree, a settlement agreement closes the dispute for good. Unpaid invoices between companies are under business documents.
With a bank, the usual requests are made in writing. Under Law 31(I)/2018, which brings the EU Payment Services Directive into Cypriot law, a consumer can end an account agreement at any time with at most a month's notice, and an authorised direct debit is refunded if asked for within eight weeks. The request to close a bank account and the cancellation of a standing order or direct debit cover those. For anything else, a written complaint to a bank comes first, because the Financial Ombudsman examines a complaint only after the bank has had it in writing. The documents are in Greek, with an English description on each page, and are filled in online and downloaded as a finished PDF, or downloaded blank.
The documents
8 forms available to fill out or download.
Cancelling a standing order or direct debit (Cyprus)
A written cancellation, sent to a bank in Cyprus, of a standing order or a direct debit from your account. It names the account, the payee and the mandate or reference number, asks that nothing be debited from the date you set and that the cancellation be confirmed in writing, and is copied to the payee, because a direct debit mandate is cancelled with the payee too. An authorised direct debit can be refunded if asked within 8 weeks, and an unauthorised one within 13 months.
Request to close a bank account (Cyprus)
A written request from the account holder to a bank in Cyprus to end the account agreement and close a bank account. It gives the account's IBAN, the closing date and the account the balance goes to, and asks the bank to cancel the cards and end standing orders and direct debits, refund prepaid fees pro rata and confirm the closure in writing. The Payment Services Directive, in force in Cyprus through Law 31(I)/2018, lets a consumer end the agreement at any time, with at most one month's notice.
Final demand for payment before legal action (Cyprus)
A creditor's last written demand in Cyprus to a debtor who has not paid, before a claim in the District Court. It states the sum in figures and words, what it is for, the document behind it and the due date, with the documents attached, gives a number of days to pay into a bank account, asks for a written reply within 14 days, as the Civil Procedure Rules require before a claim for a sum of money, leaves room for a written instalment agreement and warns of legal action with interest and costs. In Cyprus a demand is a letter: it is sent by registered post or by hand against a signature.
Settlement agreement (Cyprus)
An agreement by which two people in Cyprus finally settle a dispute or claim, without going to court or by ending a pending action: it describes the dispute, what each side accepts, who pays whom, how much and on what schedule, and what happens if a payment is late. Once the terms are met each side releases the other from the dispute, with no admission of liability, and the terms stay confidential. It is governed by the Contract Law, Cap. 149, and since 2026 needs no stamp duty.
Acknowledgement of debt and repayment undertaking (Cyprus)
A written statement by which a debtor in Cyprus acknowledges owing a creditor a set sum, and what for, and undertakes to repay it on a schedule with a final date. The creditor accepts it by signing and takes no legal action while the schedule is kept; if two instalments are missed, the whole balance falls due at once. A contract claim is time-barred after six years, and the debtor's written acknowledgement interrupts limitation, which starts running again. No stamp duty is payable.
Loan agreement between private individuals (Cyprus)
A written agreement for a loan of money between private individuals in Cyprus — relatives, friends, acquaintances: both parties with their identity card or ARC numbers, the sum in figures and words, how and when it is paid out, the repayment schedule, the interest or an agreement that the loan is interest-free, and what happens on late payment. You set the rate, within the limit of article 314A of the Criminal Code. Signed, and with the bank's record of the transfer, it proves the claim in the District Court. Since 2026 it needs no stamp duty.
Receipt for money paid between private individuals (Cyprus)
A receipt by which a private individual in Cyprus confirms receiving money from another: the sum in figures and words, what it is for, the date and method of payment, and whether it settles the whole debt or is a payment on account, with the balance left. Useful for repaying a loan, returning a deposit, selling an item or any cash payment, which otherwise leaves no trace. It is signed by the person receiving the money, and since 2026 needs no stamp duty.
Written complaint to a bank (Cyprus)
A customer's written complaint to a bank in Cyprus about an account, card, transfer, loan or other service: what happened, when, the sum involved and what you ask for, with a request for a reference number and a reasoned written answer. The written complaint to the bank is the first step: it is made within 6 months of learning of the problem, and if the answer does not satisfy you, you can take the matter to the Financial Ombudsman within 12 months of the complaint.