Tax system in Bahrain
Bahrain's tax system is light for individuals. There is no personal income tax, no net wealth tax, no personal capital gains tax, no inheritance tax and no dividend tax under a PIT regime.
Companies in most sectors also pay 0% corporate income tax, but oil and gas profits are taxed at 46% and large multinational groups can fall under a 15% Domestic Minimum Top-up Tax. Bahrain also has 10% VAT, customs duty, real-estate transfer registration fees, municipal tax and payroll social insurance.
Tax rates at a glance
- Income tax
- 0%Zero
- Wealth tax
- 0%
- Inheritance tax
- 0%
- Capital gains tax
- 0%
- Corporate tax
- 0% (46% oil sector)
- Dividend tax
- 0%
- VAT
- 10%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
Remote foundersHigh earnersInvestorsDigital nomadsHolding companies
Watch out for
- Bahrain is low-tax, not no-tax. VAT, customs duty, real-estate transfer registration fees, municipal taxes, licence fees and social insurance can still matter.
- Large multinational groups should check Bahrain's 15% DMTT from financial years starting on or after 1 January 2025.
- A 10% corporate tax has been proposed for 2027, subject to legislative approval and final rules.
Frequently asked questions
Is Bahrain a low-tax country?
Yes. Bahrain is low-tax for individuals and most companies, with no personal income tax, no wealth tax, no inheritance tax and no general corporate income tax outside key exceptions.
Which taxes apply in Bahrain?
The main taxes and charges to check are 10% VAT, oil and gas corporate tax, DMTT for large multinational groups, social insurance, customs duty, real-estate transfer registration fees, municipal tax and licence fees.
Is Bahrain good for expats and founders?
Bahrain can work well for expats and founders who want a Gulf base with no personal income tax and low company tax. The right answer still depends on residence, payroll, VAT registration, banking and where customers or shareholders are located.