Why Bahrain for FinTech?
Bahrain has positioned itself as the GCC's FinTech hub with the CBB Regulatory Sandbox, FinTech Bay incubator, and a progressive regulatory framework that balances innovation with compliance.
FinTech startups licensed
Regulatory Sandbox active
Corporate income tax
Tax Considerations
💳 Payment Processing
Transaction fees charged by payment processors are standard rated at 10%. Cross-border payment fees to non-GCC recipients may qualify for zero-rating.
₿ Crypto Assets
CBB has issued rules for crypto-asset platforms. Trading fees are standard rated. The underlying crypto transfer itself is generally outside the scope of VAT.
📱 Digital Lending
Interest income from lending is VAT-exempt as a financial service. Platform fees and arrangement fees may be standard rated depending on their nature.
🤖 InsurTech
Insurance products remain VAT-exempt whether sold via digital platforms or traditional channels. Platform subscription fees are standard rated.