'%3e%3cpath%20fill='%23eee'%20d='M0%200h182.5l88.1%20268.5-88%20243.5H0z'/%3e%3cpath%20fill='%23d80027'%20d='m182.5%200-82.3%2042.7%2082.3%2042.7-82.3%2042.6%2082.3%2042.7-82.3%2042.7%2082.3%2042.6-82.3%2042.7%2082.3%2042.7-82.3%2042.6%2082.3%2042.7-82.3%2042.7%2082.3%2042.6H512V0H182.5z'/%3e%3c/g%3e%3c/svg%3e)
Bahrain tax guide 2026
Bahrain charges no personal income tax at all — salaries, investment income, capital gains and inheritances are untaxed whether earned locally or abroad. What residents actually pay is narrow: social insurance on salary (8% for Bahrainis, 1% for expatriates), 10% value added tax (VAT) on spending, and one-off property fees. There is no annual tax return for individuals.
- Rate range
- 0%
- Key allowance
- All personal income untaxed — no filing, no brackets, no allowances needed
- Tax year
- Calendar year 2026 (no personal tax year applies)
- Filing deadline
- None — individuals file no income tax return
Taxes covered
- Income tax0%
No personal income tax exists — no national, municipal or emirate-style levy on individual earnings of any kind.
- Dividend tax0%
No tax on dividends received and no withholding on dividends paid — from Bahraini or foreign companies alike.
- Capital gains tax0%
No capital gains tax for individuals on any asset — shares, funds, property or crypto. Property changes hands with a registration fee instead.
- Crypto tax0%
No tax on personal crypto gains or trading. Bahrain regulates the industry through Central Bank of Bahrain (CBB) licensing rather than taxation.
- Social security8% / 1%
The one real payroll deduction: Bahraini employees pay 8%, expatriates 1%. Employer shares are 18% and 3% respectively in 2026.
- Inheritance tax0%
No inheritance tax, no estate duty and no gift tax — transfers at death or during life are entirely untaxed.
- Withholding tax0%
Bahrain imposes no withholding taxes at all — dividends, interest, royalties, fees and salaries all flow gross.
Special regimes
- Zero personal income tax
No tax on salaries, business profits, dividends, interest, gains or worldwide income of individuals — 0% across the board.
- Social insurance step-up (Law 14 of 2022)
The employer share for Bahraini staff rises 1 point each January — 18% in 2026, continuing through 2028.
- Domestic minimum top-up tax (DMTT)
Since 1 January 2025 large multinationals pay a 15% minimum tax on Bahrain profits — companies only, individuals untouched.
Recent changes
- 2026-01-01Employer social insurance for Bahraini employees rose to 18% (from 17%), the annual 1-point step that continues each January through 2028. Employee shares are unchanged.
- 2025-01-01A 15% domestic minimum top-up tax took effect for multinational groups with revenue above EUR 750 million — Bahrain's first profit tax of general application, aimed at companies, not individuals.
- 2025-12Bahrain announced a 10% corporate income tax for companies with revenue above BHD 1 million or profit above BHD 200,000, expected in law during 2026 and effective around January 2027 — a company tax only; personal income stays untaxed.