Middle East
Bahrain: tax at a glance
There is no personal income tax and no general corporate income tax. A 10% VAT applies, along with a 15% MNE top-up tax from 2025. Only oil and gas companies pay the 46% corporate rate.
Ways to relocate to Bahrain
The residency and citizenship routes that lead here, weighed against the tax picture above.
The taxes
- Personal income (top)
- 0%No personal income tax applies to individuals.
- Corporate income
- 0%, though oil and gas companies pay 46%, and a 15% Domestic Minimum Top-up Tax applies to large multinationals from 2025.
- Capital gains
- Exempt for individuals. There is no personal capital gains tax.
- VAT
- 10%
- Dividends (WHT)
- 0%
- Interest (WHT)
- 0%
- Royalties (WHT)
- 0%
- Social security (employee)
- 8% for Bahrainis, and 1% for expatriates.
- Social security (employer)
- 17% for Bahrainis, and 3% for expatriates.
- Wealth tax
- None
- Inheritance / estate
- None. Estate distribution follows Sharia law.
- Property tax
- There is no annual property tax, though transfer and registration fees apply.
- Other
- A 15% Domestic Minimum Top-up Tax applies to large multinationals from 2025.
How the system works
- Tax system
- No personal income tax
- Taxes by citizenship
- No
- Exit tax
- No
- CFC rules
- No
- CRS
- Participating
A special regime for new arrivals
A 15% domestic minimum top-up tax applies under Decree-Law 11/2024 to MNE groups with revenue of at least EUR 750m, effective for fiscal years starting on or after 1 January 2025. Bahrain is no longer a zero-tax jurisdiction for large groups. VAT has stood at 10% since 2022.
The rates below are indicative headline figures (top marginal, standard, and headline rates), reviewed 2026-07. Brackets, surcharges, and state, provincial or cantonal taxes vary. Treat this as a reference map, not advice.