Middle East
Bahrain tax rates 2026
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.
No personal income tax
Last verified
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.
Rates checked July 2026: the top marginal income tax rate, the standard VAT rate and the main corporate rate.
Ways to relocate to Bahrain
The residency and citizenship routes that lead here, weighed against the tax picture above.