Opening a bank account is usually one of the first and most important steps for any foreign individual or foreign company intending to invest, reside, or conduct business in a new country. This matter is of particular importance in Iran, as the Iranian banking system is governed by specific regulations that impose special conditions for foreign nationals and foreign legal entities.
In this article, we examine the types of bank accounts available to foreigners, the legal requirements, the necessary documents, and opening a bank account in Iran. It should be noted that, in addition to general regulations, each bank may have its own internal policies and procedures. Therefore, applicants are advised to review the requirements of their chosen bank separately before taking any action.
The rules and regulations governing the opening of rial bank accounts for foreign nationals in Iran are set out in the “Executive Instruction on Opening a Rial Deposit Account for Foreign Nationals” (hereinafter referred to as “Executive”) dated 15 March 2025. Under these regulations, foreign persons may open rial-denominated bank accounts subject to certain conditions.
Types of Bank Accounts Available to Foreigners in Iran
Depending on their residency status and supporting documents, foreign individuals and foreign legal entities are generally permitted to open three types of rial bank accounts in Iran; the Qard al-Hasan Current Account (hereinafter referred to as the “Current Account”), the Qard al-Hasan Deposit Account (hereinafter referred to as the “Deposit Account”) and Qard al-Hasan Long-Term Saving Account (hereinafter referred to as the “Long-Term Saving Account”).
- Current Account
This type of account is mainly suitable for daily transactions and commercial activities. Withdrawals and transfers may be made through cheques, bank cards, electronic tools, or other approved methods. Among the most important features of this account are eligibility for a cheque book for qualified applicants and no interest or profit paid on the account balance.
- Deposit Account
This account is designed for charitable and benevolent purposes. Banks commonly use these deposits to grant interest-free loans. In return, depositors do not expect profit payments and usually benefit from free or low-cost banking services.
- Long-Term Saving Account
Long-term saving accounts are suitable for persons who wish to keep funds deposited for more than one year and receive a fixed return.
Banks generally guarantee the principal and agreed return, and profits are commonly paid monthly to the depositor’s account. If early withdrawal is requested, a penalty or reduction in return may apply.
Opening an Account for Foreign Natural Persons
The Executive classify foreign individuals into two categories: resident and non-resident foreign nationals.
- Resident foreign individuals
Under the Executive, resident foreign individuals are persons holding one of the following documents:
- Permanent residence permit
- Refugee ID card issued by Iran’s law enforcement forces (i.e. Iran’s national police)
- Identity Card issued by the Ministry of Interior of Iran
- Temporary exit/residency card (commonly known as the Amayesh Card) issued by the Ministry of Interior of Iran
Resident foreign individuals holding permanent residence permits can open Current Account, Deposit Account and Long-term Saving Account.
Resident foreign individuals who hold a refugee ID card, Identity Card, or Amayesh Card may open Current Account without cheque book, Deposit Account, and Long‑term Saving Account.
These resident foreign individuals must be over 18 years old to open a bank account. However, if the individual is under 18, the account may be opened by their father or paternal grandfather.
- Non-Resident Foreign Individuals
Non-resident foreign individuals are persons who meet one of the following conditions:
- Holding a valid visa issued by the Ministry of Foreign Affairs of Iran and stamped in their passport
- Holding a passport from visa-exempt countries together with a valid entry stamp
- Holding an extended visa approved by law enforcement forces (i.e. Iran’s national police) and recorded in their passport
These individuals may open Deposit Account and Long-term Saving Account. They are not permitted to open Current Account.
Non-resident foreign individuals must be over 18 years old. Persons under 18 are generally not eligible to open accounts in this category.
It should also be noted that both resident and non-resident foreign individuals who hold a valid work permit issued by the Ministry of Cooperatives, Labour and Social Welfare of Iran may open all three categories of accounts.
Opening an Account for Foreign Legal Entities
Under the above-mentioned Executive, foreign legal entities are also divided into resident and non-resident categories.
Entities that have a duly registered branch or representative office in Iran are considered resident foreign legal entities. Those without a registered branch or representative office in Iran are considered non-resident.
Resident foreign legal entities may open Current Account, Deposit Account and Long-term Saving Account.
Non-resident foreign legal entities may only open Deposit Account and Long-term Saving Account. The presence of authorized signatories is mandatory for opening an account in Iran for this group.
Non-resident foreign legal entities must also have their incorporation documents, registration certificates, and articles of association authenticated by the Iranian diplomatic mission in their home country or by the nearest Iranian diplomatic mission.
It should also be noted that, pursuant to Article 12 of the Executive, bank accounts must be opened within the geographical area where the foreign individual resides. In other words, applicants may not open an account in a city far from their place of residence.
Required Documents for Foreign Individuals
Foreign individuals must generally submit the following documents to open a bank account in Iran:
- Valid identification documents such as passport, Amayesh Card, or refugee ID card
- Foreign Identification Code (FIDA Code)
- Photographs of the applicant
- Proof of residence address
- Residency documents (valid visa, residence permit, or work permit)
- Bank account opening forms
Each bank may request additional documents depending on its internal policies. Therefore, applicants should contact the relevant branch before visiting in person.
Required Documents for Foreign Legal Entities
Required documents generally include:
- Articles of association
- Certificate of incorporation
- Official Gazette
- A document that shows authorized signatories of the company
- Identification documents of signatories
- Registration documents of branch or representative office in Iran (if applicable)
Conclusion
Foreign nationals and foreign companies intending to open a bank account in Iran should ensure the validity of all their documents and prepare the required paperwork in advance.
Due to differences in banking practices and the complexity of certain procedures, obtaining professional legal advice or expert assistance can make the process faster and more secure.
For consultation and assistance regarding opening a bank account in Iran, please contact us:
+98-21-88863094
+98-21-88863098
+98-21-88863115
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