Middle East · BHD
Bahrain
Reviewed 2026-06-21
Top income tax
0%
Self-employed SS
No
VAT
10%
Capital gains
0%
Exit tax
No
Nomad visa
No
82
/ 100
Tax efficiency99
Ease to enter57
Ease to exit93
Cost of living79
Internet31
English60
Bahrain levies no personal income tax, no capital gains tax, and no wealth or inheritance tax, making it one of the most tax-light bases in the Gulf for a solopreneur. There is no general corporate income tax either, although a 15 percent domestic minimum top-up tax now applies to very large multinational groups and oil and gas firms pay 46 percent. A 10 percent VAT applies, and social insurance is compulsory for employees but not for the self-employed, while residency is typically secured through investor or Golden Residency routes rather than a dedicated digital nomad visa.
Personal income tax
Income tax structureNone
Top income tax rate0%
Entry income tax rate0%
Taxation basisTerritorial
Local/state income taxNo
Social security
Self-employed social securityNo
Employee SS rate8%
Employer SS rate17%
Indirect & other taxes
VAT standard rate10%
Capital gains rate0%
Long-hold CGT exemptionNo
Wealth taxNo
Inheritance/gift taxNo
Property taxNo
Exit & residency
Exit taxNo
EU/EEA deferralNo
Days to trigger residency183 days
Corporate
Corporate income tax rate0%
WHT on dividends0%
CFC rulesNo
Incentives & special regimes
Special expat regimeNo
Immigration & setup
Digital nomad visaNo
Entrepreneur visaYes
Ease of setup3 / 5
Lifestyle
Cost of living index45.8
Internet speed140 Mbps
English proficiencyMedium
Civil liberties17
Sources
- PwC Worldwide Tax Summaries — Bahrain Individual: Taxes on personal income
- PwC Worldwide Tax Summaries — Bahrain Corporate: Taxes on corporate income (DMTT, oil and gas)
- PwC Worldwide Tax Summaries — Bahrain Individual: Other taxes (social insurance rates, no wealth tax)
- PwC Worldwide Tax Summaries — Bahrain Corporate: Other taxes (VAT 10 percent)
- Numbeo — Cost of Living in Manama
Informational only. Nothing here is tax, legal, or financial advice. Tax rules change often and vary by personal circumstance. Verify every figure against an official source and a qualified adviser before acting. Figures are re-expressed from public sources and cited per country.