Manama: Bahrain’s Parliament has passed a proposal to impose a two percent tax on remittances sent by expatriates. The Finance and Economic Affairs Committee’s proposal was debated and voted on in the Shura Council yesterday. With this approval, expatriates will now be required to pay a tax on remittances, with a one percent levy on amounts below 200 dinars (46,000) and a two percent tax on transactions between 201 and 400 dinars.
Bahrain becomes the first Gulf country to impose a remittance tax, a move aimed at reducing reliance on oil revenues and encouraging expatriates to spend their earnings within the country instead of sending them home.
Although the proposal was initially submitted in February 2023, it had been postponed for further discussion. Some MPs and financial experts had expressed concerns that the tax might push expatriates to use cryptocurrency or other informal channels to transfer money. However, these concerns were dismissed by the Shura Council, and the bill has been amended several times since its introduction.
