Taxes in Bahrain 2026: Income, VAT, Property and More

Personal income tax: none

Bahrain does not tax personal income. Salaries, pensions, rental income, interest, dividends and capital gains received by individuals are not taxed in Bahrain.

Your home country may still tax you if you remain tax resident there or if it taxes by citizenship, as the United States does. Take advice before you move.

Corporate tax

Bahrain has no general corporate income tax. The main exception is oil and gas: companies exploring for, producing or refining oil and gas in Bahrain pay 46% on their net profits.

From fiscal years beginning on or after 1 January 2025, a 15% Domestic Minimum Top-up Tax (DMTT) applies to large multinational groups with consolidated global revenue of at least EUR 750 million in at least two of the previous four years. It follows the OECD global minimum tax model and does not affect individuals or typical small businesses.

VAT at 10%

Value added tax was introduced in January 2019 at 5% and rose to 10% on 1 January 2022. It is administered by the National Bureau for Revenue (NBR).

Many essentials are zero-rated, which means no VAT is charged to the consumer. Other supplies, including most financial services and the sale and rental of real estate, are exempt.

Treatment	Examples
Standard rate 10%	Most goods and services, restaurants, cars, electronics, agency and professional fees
Zero-rated 0%	Basic food items on the official list, local transport, basic healthcare and medicines, basic education, construction of new buildings, exports
Exempt	Sale and lease of land and buildings, many financial services such as margin-based banking

VAT and property

According to the NBR's real estate guidance, the sale and rental of residential and commercial property is generally exempt from VAT, while construction of new buildings is zero-rated. Services around a purchase, such as agency commission and legal fees, are normally charged at 10%.

Rules for specific transactions can differ, so check the NBR real estate guide or ask your developer or lawyer how VAT applies to your purchase.

Property taxes and fees

There is no annual property tax, no tax on rental income and no capital gains tax on property in Bahrain. The main cost of buying is a one-time registration fee.

The Survey and Land Registration Bureau charges a transfer fee of 1.7% of the price if the sale is registered within 60 days of notarisation, rising to 2% after that. Off-plan purchases and developer schemes may have their own registration arrangements.

Property tax or fee	Bahrain
Annual property tax	None
Tax on rental income	None
Capital gains tax	None
Title transfer fee	1.7% within 60 days of notarisation, 2% after
Municipal fee for tenants	Commonly 10% of rent (unfurnished) or 7% (furnished), via the EWA bill

Municipal tax on rent

Tenants pay a municipal fee that is added to the monthly EWA electricity and water bill. It is commonly charged at 10% of the registered monthly rent for unfurnished and semi-furnished homes and 7% for furnished homes.

Owners who live in their own homes pay a municipal charge too, generally lower than tenants pay. Landlords and tenants can agree who bears the fee, so check your lease.

Social insurance is run by the Social Insurance Organisation (SIO). It applies to employees, not to people living in Bahrain without a job, such as retirees or investors on the Golden Residency.

For foreign employees, the employer pays a contribution for work injury cover and monthly end-of-service contributions, and the employee pays 1% of salary towards unemployment insurance.

Bahraini employees join the national pension scheme, with higher contributions from both employee and employer. The employer share has been rising each year under recent reforms, so check the SIO for current rates.

Contribution	Foreign employee	Bahraini employee
Pension	Not covered	Covered, employee and employer contribute
Unemployment insurance	1% employee	1% employee plus employer share
Work injury	Employer pays	Employer pays
End of service	Employer pays 4.2% (first 3 years) then 8.4% to the SIO	Covered by pension

Excise tax

Bahrain applies the GCC excise tax on selected goods. Tobacco products and energy drinks are taxed at 100%, and carbonated soft drinks at 50%.

GCC states have agreed changes to how sweetened drinks are taxed, so check the NBR for the current scope and rates.

Customs duty

Most imports from outside the GCC carry the common GCC customs duty of 5% of the value, with higher rates on alcohol and tobacco. Goods moving between GCC states are generally duty-free.

No inheritance tax

Bahrain does not levy inheritance, estate or gift tax. Freehold property in the designated zones carries full inheritance rights.

How an estate is divided depends on succession law, not tax. Foreign owners should make a will that covers their Bahrain assets and take legal advice.

Double tax treaties

Bahrain has signed double tax agreements with dozens of countries, and new treaties continue to be added, including with Hong Kong, Guernsey, Jersey and Oman in recent years. The Ministry of Finance and National Economy publishes the list.

Because Bahrain does not tax personal income, treaties matter mainly for proving tax residency and for companies. A Bahrain tax residency certificate may help you claim treaty benefits in another country.

What this means for a Golden Residency holder

If you live in Bahrain on the Golden Residency, you pay no income tax on salary, pension, rent or investment income in Bahrain, and no annual tax on the property that secured your residency.

Your main recurring taxes are VAT on spending, the municipal fee if you rent, and excise on a few products. When you buy, budget for the 1.7% transfer fee and 10% VAT on agency and legal fees.

Whether you also stop paying tax at home depends on your home country's rules. Check with a tax adviser before you rely on Bahrain's low-tax position.

Questions people ask.

Is there income tax in Bahrain?

No. Bahrain does not tax personal income, including salaries, pensions, rental income and investment income.

What is the VAT rate in Bahrain?

The standard rate is 10%, in place since 1 January 2022. Basic food items, local transport, basic healthcare and basic education are zero-rated.

Is there property tax in Bahrain?

There is no annual property tax, no tax on rental income and no capital gains tax. Buyers pay a one-time transfer fee of 1.7%, or 2% if registered after 60 days.

Does Bahrain have corporate tax?

There is no general corporate income tax. Oil and gas companies pay 46%, and large multinational groups pay a 15% minimum top-up tax from 2025.

What is the municipal tax in Bahrain?

Tenants pay a municipal fee through the EWA bill, commonly 10% of rent for unfurnished homes and 7% for furnished homes.

Is there inheritance tax in Bahrain?

No. Bahrain does not levy inheritance, estate or gift tax, though succession law still decides how an estate is divided.

Do expats pay social insurance in Bahrain?

Foreign employees pay 1% of salary towards unemployment insurance, and their employer pays work injury and end-of-service contributions. Retirees and investors without a job do not pay.

Is VAT charged when buying property in Bahrain?

The sale of real estate is generally exempt from VAT under NBR guidance, but agency commission and legal fees usually carry 10% VAT. Check how it applies to your purchase.

Golden Residency

Live here for 10 years, with your family.

Own property worth BHD 130,000 and you, your spouse, children and parents can live in Bahrain on a renewable Golden Residency.

See how it works

Sources: Bahrain Golden Residency, official site · National Bureau for Revenue (VAT, excise, DMTT) · Ministry of Finance and National Economy · Social Insurance Organisation · Survey and Land Registration Bureau · Electricity and Water Authority · PwC Worldwide Tax Summaries: Bahrain · EY: Bahrain issues domestic minimum top-up tax legislation · Bahrain property laws in plain English (ASK Real Estate)

Taxes in Bahrain: A Plain Guide for Residents and Investors