About Bahrain's Tax System
Bahrain, located in Asia, offers a territorial tax system. Under a territorial tax system, only income earned within the country's borders is subject to taxation, making it an attractive destination for international entrepreneurs and digital nomads.
With a corporate tax rate of 0% and a top personal income tax rate of 0%,Bahrain ranks among the more tax-friendly jurisdictionsin our World Tax Index with an overall score of 83/100.
Tax Information
0%
No corporate income tax, except for oil and gas companies (15% MNE rules implemented recently).
0%
TerritorialNo personal income tax.
Economic & Investment Climate
Measures how often a country's tax regulations have changed over the last decade. Higher score means more predictable tax environment.
Indicates how independent the country's tax system is from global pressures. Higher score means more control over own tax policies.
A measure of the country's overall economic health and predictability, based on GDP growth, inflation, and sovereign credit ratings.
Reflects the safety and security of investments in the country, considering factors like legal protections for investors and political risk.
Based on perceived levels of public sector corruption. Higher score indicates a cleaner, more transparent business environment.
Rates the value of special programs offered, such as tax-free periods for new residents or designated economic zones. Higher score means more attractive incentives.
Investment & Residency Programs
Citizenship Pathways
Bahrain offers citizenship through ancestry or bloodline connections.
Rule
Patrilineal Jus Sanguinis (Right of Blood)
Conditions
Citizenship is acquired by descent if the father is a citizen of Bahrain, regardless of birthplace. A Bahraini mother can only pass citizenship if the father is unknown or stateless.
Bahrain's policy on birthright citizenship.
Rule
Conditional Jus Soli (Right of Soil)
Conditions
A child born in Bahrain to unknown parents (a foundling) is a citizen. A child born to a foreign father who was *also* born in Bahrain and maintained residency may also acquire citizenship.
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