Bahrain has no personal income tax—expats and locals both keep 100% of their salary. However, GOSI (social insurance) applies: Bahraini employees pay 8% (employer adds 14%), while GCC nationals pay their home country rates. Expats pay just 3% GOSI (employer adds 3%). 10% VAT was introduced in 2022. Bahrain has no capital gains tax, no inheritance tax, and no withholding tax. Corporate tax is limited to oil companies (46%) and foreign banks (currently 0%, but 15% global minimum tax coming). Golden Residency visa allows long-term stay without employer sponsorship. Cost of living is lower than UAE or Qatar. Use our calculator to compare Bahrain with taxable countries.
CountryTaxCalc.com is reader-supported. When you use our partner links, we may earn a commission at no cost to you. This helps us provide free tax calculators and comparison tools. Learn more about our affiliate partnerships
★ 4.3 Trustpilot · 287,413 reviews
Send money to and from Bahrain at the real mid-market rate. Free account. 14.8M customers. 4.3★ / 287,000+ reviews.
⚠ For currency exchange only — not a bank account replacement.
Send Money To/From Bahrain →★ 4.7 Trustpilot · 8,728 reviews
Need to hire in Bahrain or pay international contractors? Deel handles payroll compliance in 150+ countries. Trusted by 40,000+ companies.
⚠ For employers and companies only — not for individual freelancers or employees.
Hiring in Bahrain? Deel Handles Compliance →★ 4.2 Trustpilot · 3,259 reviews
International health insurance built for digital nomads. Coverage in 185+ countries. From $62.72 per 4 weeks. 4.2★ / 3,259 Trustpilot reviews.
⚠ Not a replacement for comprehensive private health insurance in high-cost countries.
Get International Health Insurance →Interested in reaching this audience? Advertise on CountryTaxCalc →
No personal income tax applies in Bahrain—zero for both Bahraini citizens and expats. You keep 100% of your gross salary (minus GOSI social insurance). This has been consistent since Bahrain's founding. Unlike UAE which introduced corporate tax in 2023, Bahrain has no plans to introduce personal income tax.
GOSI (General Organisation for Social Insurance) provides retirement, disability, and death benefits. Bahrainis pay 8% of salary (employer adds 14%, plus 3% hazard levy). GCC nationals pay their home country rates. Expats contribute only 3% (employer matches 3%)—covering workplace injuries only, no pension benefits.
Bahrain introduced 5% VAT in 2019, increased to 10% in January 2022. VAT applies to most goods and services. Zero-rated items include basic food, education, healthcare, and exports. Financial services are exempt. Businesses with turnover above BHD 37,500 must register. Lower than UAE and Saudi Arabia's 15%.
Bahrain has no general corporate income tax. The only exception: oil and gas companies pay 46% on net profits. Foreign banks currently pay 0% but this will change under OECD Pillar Two (15% global minimum tax). No withholding tax on dividends, royalties, or interest. Makes Bahrain attractive for regional headquarters.
Bahrain's Golden Residency (launched 2022) allows foreigners to live and work without employer sponsorship. Three categories: investors (BHD 100,000+ investment), talent (specialized professionals), and retirees (proven pension income). Grants 10-year renewable residency. Similar to UAE's Golden Visa but lower threshold. Includes family sponsorship rights.
Effective rates, what the headline hides, 111+ countries. Every two weeks, free.
Bi-weekly. No spam. Unsubscribe in one click.
Last Updated: May 2026