Tax system in Kuwait
Kuwait is very light-tax for individuals. There is no personal income tax, no net wealth tax, no inheritance tax and no personal capital gains tax regime, so salaries, freelance income, investment income and foreign income are not taxed under a Kuwaiti PIT system.
Companies need a separate review. Kuwait does not impose corporate income tax on Kuwaiti-owned or GCC-owned companies, but foreign corporate bodies are taxed at 15%. Large multinational groups in scope of the 15% Domestic Minimum Top-up Tax instead use that regime, which replaces the ordinary Kuwaiti taxes for the in-scope group, from financial years starting on or after 1 January 2025. VAT is not in force yet, although the draft law remains under discussion.
Tax rates at a glance
- Income tax
- 0%Zero
- Wealth tax
- 0%
- Inheritance tax
- 0%
- Capital gains tax
- 0%
- Corporate tax
- 15%
- Dividend tax
- 0%
- VAT
- NA
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
- Kuwait is not tax-free for businesses. Foreign corporate bodies can be taxed at 15%, and large MNEs may fall under the 15% DMTT with extra compliance steps.
- There is still no VAT in force, but the GCC VAT framework remains under parliamentary discussion, so indirect tax rules can change.
- FATF placed Kuwait under increased monitoring in February 2026, so bank and counterparty due diligence can be stricter even though that is not a tax.
Frequently asked questions
Is Kuwait a low-tax country?
Yes. Kuwait is low-tax for individuals because it has no personal income tax, no wealth tax, no inheritance tax and no personal capital gains tax. Business tax can still apply to foreign corporate bodies and some large multinational groups.
Which taxes apply in Kuwait?
The main items to check are 15% corporate tax for foreign corporate bodies, 15% DMTT for in-scope MNEs, social security for Kuwaiti employees, customs duty and retention rules on corporate payments. VAT is still not in force.
Is Kuwait good for expats and founders?
Kuwait can work well for expats who want no personal income tax, but founders should still model corporate tax scope, DMTT, payroll social security, AML checks and foreign tax exposure.