Bahrain
Living, work, immigration, education & business — official links and practical guides
Key Facts
Basics
Economy
Source: World Bank Open Data (CC BY 4.0) · 2024 · Last checked: 2026-07-06
Tax snapshot
- No personal/corp income tax (ex-oil/gas); 2025 onwards 15% corp tax on large MNEs (Pillar 2) only.
- Introduced at 5% in 2019-01 and doubled to 10% on 2022-01-01. Operates under the GCC Common VAT Agreement.
Source: National tax authority · Cross-check: OECD · PwC · KPMG · Last checked: 2026-07-16
Headline statutory rates. The income-tax figure includes national surtaxes; any regional or municipal layer is shown beside it. Social contributions and reliefs are excluded. Verify the current rate with the authority before relying on it.
At a glance
A Gulf state with no personal income tax, where the state's revenue from foreign labour comes through the employer instead: work permits, monthly levies and the end-of-service contribution are all employer costs, and residence follows the employer's work permit. The Golden Residency is the main way to stay long-term without one. VAT is 10%, and a 10% corporate income tax is still a draft. Foreign investors can own 100% of a company for most activities, registered online through Sijilat.
Best for
Employees on a regional contract who want a tax-free salary, investors who want 100% ownership with online registration, and long-serving residents or property buyers eligible for the Golden Residency.
Who this may not suit
Anyone who needs residence independent of an employer without meeting a Golden Residency route, or employers who expect to staff entirely with expatriates in a sector with Bahrainisation targets.
Main routes in
Key trade-offs
- No income tax, but your residence is tied to your employer's work permit unless you qualify for the Golden Residency.
- Employer costs per expatriate — permit fees, levies, end-of-service contributions — are significant and rising in steps to 2029.
- Business taxes are low today, but a 10% corporate income tax is in the legislative pipeline.
First steps
- 1 Agree the job first: the employer applies for the LMRA work permit and then the residence permit.
- 2 Once resident, get your CPR identity card; banks and most services ask for it.
- 3 Make sure your lease is in writing and registered with the municipality.
What changes often
- · Work-permit fees and monthly levies, rising in steps from 2026 to 2029
- · The status of the draft 10% corporate income tax
- · Golden Residency thresholds, last changed in November 2025
Permit fees, levies and residence requirements change — confirm them with the Labour Market Regulatory Authority before hiring or applying. Labour Market Regulatory Authority (LMRA) ↗