After weeks of speculation, the 26-year-old Colombian has already spoken of Jose Mourinho’s influence in tempting him to put pen to paper on a four-and-a-half-year deal at Stamford Bridge.
“I am very happy and thankful for this opportunity I’ve been given,” Cuadrado told Chelsea’s official website.
“This is a great club and honestly it is like a dream to join the Chelsea family and to know that the manager believes in me. I’m happy.”
Cuadrado, one of the best performers at last year’s World Cup, joins from Fiorentina for a fee which will reportedly rise to his €35million release clause.
A Chelsea spokesman has described their latest big-money recruit as "pacy and agile...with an eye for the spectacular''.
His efforts for Colombia at the 2014 World Cup may have been slightly overshadowed by James Rodriguez, but he was one of his country’s key players in their run to the quarter-finals at Brazil. Indeed, no player made more assists at last year’s global tournament in Brazil, creating four goals and scoring once.
The fee will be dwarfed this window only by Manchester City's €37million purchase of Wilfried Bony and the deal adds to the already impressive attacking options at Jose Mourinho's disposal.
Cuadrado arrives at Stamford Bridge after five-and-a-half years in Italy, having first joined Udinese from Independiente Medellin.
The attacking midfielder, capped 37 times by his country, moved onto Fiorentina in 2012 after a loan spell at Lecce before today moving to the Premier League.
The announcement of Cuadrado’s arrival came shortly after Andre Schurrle completed his move to Wolfsburg.
The 24-year-old signed from Bayer Leverkusen 18 months ago and last summer helped Germany win the World Cup.
However, Schurrle has found it tough to break into Mourinho’s starting line-up and has now returned to his homeland to join Wolfsburg on a deal until 2019.
There could yet be more exits from Stamford Bridge before the transfer deadline with Mohamed Salah’s move to Fiorentina still on course. And one or two players currently on loan could exit Stamford Bridge on a permanent basis.