As an expat in Bahrain, you’ll enjoy a welcoming community, tax-free income, and year-round sunshine—making it one of the top destinations for expatriates in the Middle East.
In this guide, we’ll walk you through everything you need to know about relocating to Bahrain from a personal tax perspective, including tax residency, double tax treaties and tax return obligations.
TaxPilot recommend that you organize your affairs in good time to get ahead and make the most of favorable tax treatment while making sure you’re meeting your tax return obligations.
Bahrain follows a zero taxation model. You will not pay tax on personal income sources.
if you spend more than 182 days in Bahrain during the tax year.
Tax on property and share sales
Tax on value of owned assets
Tax on assets passed to heirs
Tax to contribute to state welfare
If you receive incomes overseas while you are living in Bahrain, you may find that the source country, as a starting point, continues to tax the income.
Double taxation agreements may remove the source country’s taxing right and thus, enable you to receive incomes tax free globally.
At present, Bahrain has 45 double taxation agreements signed.
