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Bahrain Tax Guide

Middle East
Updated January 2025
Sources + last updated

This page includes citations to the sources used for this entry. Always verify with official sources before making decisions.

Personal Tax Score
100/100
Extremely Tax Friendly
Business Tax Score
90/100
Extremely Tax Friendly

Personal Income Tax

Tax Residency

Day Threshold
183 days
Note
183 days required for tax residency

Income Tax Rates

Top Marginal Rate
0%
Structure
No personal income tax

Foreign Income Treatment

System
Exempt
Details
No personal income tax

Investment Income

Capital Gains
0%
Dividends
0%
Interest
0%

No capital gains tax


Wealth & Inheritance

Wealth Tax
No - No wealth tax
Inheritance Tax
No - No inheritance tax

Practical Notes

10% VAT introduced. Corporate tax only on oil companies (up to 46%). Growing financial services sector.

Business & Corporate Tax

Corporate Income Tax

Headline Rate
0%
Effective Rate Note
No general corporate tax; 46% on oil companies only; 15% QDMTT for large MNEs from 2025
Free Zone / Incentives
Free zones with various incentives available

Withholding Taxes

Dividends
0%
Interest
0%
Royalties
0%

VAT / GST

Rate
10%
Note
10% VAT introduced recently

Compliance & Substance

Substance Requirements
Moderate
Compliance Friction
Low - regional financial hub

Notable Regimes

  • Zero tax for non-oil businesses
  • QDMTT for large MNEs

Data Sources

Last updated: January 2025. Always verify with official sources before making decisions.

FAQ

What is the personal income tax rate in Bahrain?

Bahrain has a top personal income tax rate of 0%. The tax structure is: No personal income tax. See the detailed breakdown above and verify with official sources.

Do I need to pay tax on foreign income in Bahrain?

Bahrain uses a exempt system for foreign income. No personal income tax

What are the residency requirements for Bahrain?

Tax residency in Bahrain generally requires 183 days of physical presence. 183 days required for tax residency. Always verify current rules with official sources.

Is there a wealth tax in Bahrain?

No, Bahrain does not have a wealth tax. No wealth tax

What is the corporate tax rate in Bahrain?

The corporate tax rate in Bahrain is 0%. No general corporate tax; 46% on oil companies only; 15% QDMTT for large MNEs from 2025