Starting a business in
🇧🇭Bahrain
Checked November 4, 2026 · How we score
Corporate tax
0%
Top income tax
0%
Setup from
$2,500
all-in, first year
Time to form
10 days
visit usually needed
Taxes in Bahrain
| Corporate income tax | 0% No general corporate income tax. Oil, gas and petroleum activities are taxed at 46%. A 15% Domestic Minimum Top-up Tax (DMTT) applies from 1 January 2025 to multinational groups with consolidated revenue of EUR 750m or more. |
|---|---|
| Personal income tax (top) | 0% No personal income tax on salaries, dividends, interest or business income. Employees (including expats) pay social insurance (unemployment insurance 1% for employees). |
| Tax system | No personal income tax |
| Capital gains tax | 0%No capital gains tax. |
| Dividend withholding (non-residents) | 0% |
| VAT / GST | 10% |
| Social security | Social insurance (SIO) contributions apply to Bahraini nationals and, in a limited form, expatriates (employer contributes about 3% of wages for expatriates). |
Forming a company in Bahrain
| Usual entity | WLL (With Limited Liability) or SPC |
|---|---|
| Minimum capital | None |
| Setup cost (all-in) | $2,500–$6,000 |
| Annual running cost | $2,500–$6,000 |
| Time to incorporate | 10 days |
| Form remotely as a foreigner | No |
| Local director required | No |
| Local address required | Yes |
| Owners on public register | No |
| Statutory audit for small companies | Yes |
| Business banking for non-residents | Moderate |
Residency and visas
Company owners can sponsor their own visa and residence permit. The Golden Residency (10-year, renewable) is open to property owners with property of BHD 200,000 (about $530,000) or more, high earners and some investors and talent. There is no digital nomad visa.
| Digital nomad visa | No |
|---|---|
| Golden visa | Yes, from $530k |
| Ease of residency for founders | 2/5 (1 = easiest) |
Special tax regimes
Golden Residency
Renewable 10-year residency for investors, property buyers (from about BHD 200,000), high-income earners and select professionals.
Bahrain Investors Centre / 100% foreign ownership
Foreigners can own 100% of a company in most sectors through the Sijilat portal, with fast commercial registration.
Domestic Minimum Top-up Tax
A 15% top-up tax from 2025 on large multinational groups only; it does not affect small companies.
Pros and cons
Why founders pick Bahrain
- No personal income, corporate or capital gains tax for most businesses
- Relatively low setup and licence costs
- 100% foreign ownership in most sectors
- Well-developed financial regulator and fintech framework
Watch out for
- VAT rose to 10% in 2022 and fiscal pressure is rising
- Smaller market and ecosystem than UAE or Saudi Arabia
- Company setup and bank account opening usually need an in-person visit
- 15% top-up tax for large groups from 2025
Best for: Service and consulting companies wanting no corporate tax at modest cost · Fintech and crypto firms using the CBB sandbox · Founders targeting Saudi Arabia via the causeway
Bahrain: common questions
Does Bahrain have income tax?
No. Bahrain does not tax individuals' salaries, dividends or capital gains, and it has no general corporate income tax. Oil and gas companies pay 46%, and VAT is 10%.
What is the corporate tax rate in Bahrain?
There is no general corporate tax, so most companies pay 0%. Oil, gas and petroleum companies pay 46%, and large multinational groups pay a 15% domestic top-up tax from 2025.
Can foreigners own a business in Bahrain?
Yes. Foreigners can generally own 100% of a company in most sectors, registered through the Sijilat portal, and company owners can sponsor their own residence permit.
How much does it cost to start a company in Bahrain?
A small WLL typically costs about $2,500 to $6,000 in the first year including registration, licence, office and visas, and a similar amount annually. Regulated sectors such as finance cost more.
Is Bahrain on the EU tax blacklist?
No. Bahrain is not on the EU list of non-cooperative jurisdictions for tax purposes. It introduced VAT in 2019 and a domestic minimum top-up tax in 2025 to align with international standards.
Sources
- National Bureau for Revenue (Bahrain)
- Sijilat - Ministry of Industry and Commerce
- PwC Tax Summaries - Bahrain
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Not tax or legal advice. Rates and rules change; we check official sources and update every page, but verify with a licensed adviser in the country before acting. Spotted something out of date? Use the correction form below.