Introduction to
Kuwait tax planning guide

As one of the Gulf’s most dynamic countries, Kuwait offers expats a unique blend of traditional Arab culture and modern city living —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 Kuwait 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.

TAX SYSTEM

HOW YOU’RE TAXED IN Kuwait

Kuwait follows a zero taxation model. You will not pay tax on personal income sources.

Resident
Local Income
Foreign Income
Non-Resident
Local Income
Foreign Income
RESIDENCY

YOUR RESIDENT STATUS IN Kuwait

You’ll be considered tax resident if you satisfy any of the following criteria:
HIGHEST RATE

INCOME TAX IN Kuwait

Residents are subject to progressive tax rates and the highest rate of tax levied on employment income and self employment income is 0%.
Global comparison
56%
World highest
0
%
Kuwait
0%
World lowest
OTHER TAXES

PERSONAL TAXES IN Kuwait

Asset tax

Tax on property and share sales

Wealth tax

Tax on value of owned assets

Death tax

Tax on assets passed to heirs

Social tax

Tax to contribute to state welfare

 * It is recommended that you review your affairs and structure accordingly so that you do not end up creating an unexpected tax charge and paying more tax than necessary.
INTERNATIONAL TAX

DOUBLE TAXATION AGREEMENTS IN Kuwait

If you receive incomes overseas while you are living in Kuwait, 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, Kuwait has 82 double taxation agreements signed.

Global comparison
140
World highest
82
Kuwait
0
World lowest
COMPLIANCE

TAX OBLIGATIONS IN Kuwait

What is the deadline to file tax returns and settle tax liabilities?
The tax year starts on 1 January and ends on 31 December.
What is the deadline to file tax returns and settle tax liabilities?
N/A tax return filing is not required in Kuwait.
Do you need to make advance payments of tax?
N/A tax payment is not required in Kuwait.