# Banking and Money in Bahrain: Accounts, Mortgages and Transfers Bahrain is one of the Gulf's established banking centres, with local and international banks regulated by the Central Bank of Bahrain. Here is how expats and investors open accounts, borrow and move money. ## Bahrain as a financial centre Bahrain has been a regional banking hub for decades, and it is a leading centre for Islamic finance. All banks are licensed and supervised by the Central Bank of Bahrain (CBB). The Bahraini dinar is pegged to the US dollar at BHD 0.376 to USD 1. There are no exchange controls, so you can move money in and out freely, subject to normal anti-money-laundering checks. ## Opening an account as a resident Once you have your residence permit and CPR card, opening a personal current or savings account is straightforward. Most banks let you start online or in the app and finish in a branch. Banks offer both conventional and Islamic accounts. Debit cards, credit cards, mobile banking and contactless payments are standard. - Passport and valid residence permit - CPR card - Proof of address, such as a lease, title deed or EWA bill - Salary certificate or proof of income - Some banks set a minimum salary or balance for certain accounts ## Main banks Bahrain's retail banks include large local banks, Islamic banks and branches of international groups. Most offer English-language apps, online account opening for residents and dedicated expat or priority banking. Compare minimum balances, fees, card benefits and how easily each bank handles international transfers before choosing. - Large local banks, including National Bank of Bahrain and BBK - Islamic banks, including Bahrain Islamic Bank, Kuwait Finance House Bahrain and Al Salam Bank - International banks with retail operations, such as HSBC and Standard Chartered - Digital banking options are growing, regulated by the CBB ## Opening an account as a non-resident Non-residents can open accounts at some banks, but the process is more demanding and options are fewer. Expect enhanced due diligence, proof of source of funds and, often, a higher minimum balance. Buyers purchasing property before they hold residency often use a non-resident account or pay from abroad. Once the purchase completes and residency is issued, moving to a resident account is usually easier. ## Mortgages for expats Several Bahraini banks offer mortgages to resident expats buying in areas where foreigners can own property. Both conventional and Islamic home finance are available. Lending limits depend on the bank, your income and the property. The CBB caps how much of your monthly income can go to debt repayments, and banks usually require a deposit, often in the region of 20% to 30% for expats. Non-resident buyers find mortgages harder to arrange, and many pay cash or use a developer's payment plan. Off-plan projects often offer staged payments during construction. - Eligibility | Mainly resident expats with a salary or proven income - Deposit | Often around 20% to 30% for expats, set by the bank - Term | Often up to 20 to 25 years, limited by age at maturity - Repayment limit | Capped as a share of income under CBB rules - Products | Conventional mortgages and Islamic home finance ## Golden Residency and financed property If you plan to use a mortgaged property for the Golden Residency, ask the NPRA and your bank how the property value and ownership will be assessed before you sign. Rules on financed and off-plan property can differ from those for fully paid property. ## Sending money home International transfers can be made through your bank or through licensed exchange houses, which are popular for remittances. Compare exchange rates and fees, as they vary. Domestic transfers are fast through Bahrain's national payment systems, including instant transfers between banks using a mobile number or account. Many shops and individuals accept payment through BenefitPay. ## No income tax, but VAT applies Bahrain has no personal income tax, no tax on interest or dividends for individuals, and no capital gains tax. Your home country may still tax your worldwide income, so take advice if you remain tax resident there. VAT at 10% applies to most goods and services, including bank fees on some services, though many core financial services are exempt. ## Practical tips Keep your CPR and residence permit up to date, as banks freeze or restrict accounts with expired documents. Update the bank whenever you renew. Before you leave Bahrain permanently, settle loans and credit cards and close accounts properly. Unpaid debts can lead to travel bans. ## Paying for property Property purchases are paid by bank transfer or manager's cheque, and the transfer fee is paid at registration. Off-plan payments on registered projects go into an escrow account regulated by the Real Estate Regulatory Authority (RERA). Keep records showing the source of the funds you bring in. Banks, notaries and the land registry may all ask for them, and they help when you later sell or move money out. For buyers transferring large sums, compare your bank's exchange rate with specialist currency providers. Because the dinar is pegged to the dollar, dollar transfers carry less currency risk. ## Credit history and cards Bahrain has a credit bureau, and banks check your local credit record before approving loans and credit cards. New arrivals have no local history, so a salary transfer to the same bank often helps. Paying bills and cards on time builds your record, which matters later if you apply for a mortgage. ## FAQ **Can a non-resident open a bank account in Bahrain?** Some banks allow it, with stricter checks, proof of source of funds and often a higher minimum balance. Residents with a CPR card find it much easier. **Can expats get a mortgage in Bahrain?** Yes. Several banks lend to resident expats buying in areas open to foreign ownership, usually with a deposit of around 20% to 30% and repayment limits set by the Central Bank of Bahrain. **Is there income tax in Bahrain?** No. Bahrain does not tax personal income, interest, dividends or capital gains for individuals. **What documents do I need to open a bank account in Bahrain?** Typically your passport, residence permit, CPR card, proof of address and a salary certificate or proof of income. **Is the Bahraini dinar pegged to the dollar?** Yes, at BHD 0.376 to USD 1, so BHD 1 is about USD 2.66. **How do I send money from Bahrain?** Through your bank's international transfer service or a licensed exchange house. Compare rates and fees before sending. **Can I buy property in Bahrain without a local bank account?** Yes, many buyers pay from abroad, but a local account makes paying fees, service charges and EWA bills much easier. Keep clear records of the source of funds.