Bahrain

Tax residency in Bahrain is generally triggered by physical presence exceeding 183 days in a calendar year. Foreign income treatment: exempt. No statutory CFC rules apply, which can facilitate the use of foreign holding structures without automatic income attribution.

No personal income tax. No corporate income tax except for oil companies. VAT introduced at 10% in 2022.

The standard corporate income tax rate is 0%. The administrative process is considered straightforward, with minimal bureaucratic friction.

Account opening in Bahrain can be challenging for foreign nationals or non-resident businesses, and enhanced due diligence is common practice. Internet connectivity is generally good, with consistent broadband availability in business districts and main population centres.

Bahrain is a member of the Financial Action Task Force (FATF) and meets its anti-money-laundering standards. EU tax blacklist status: grey_list. Structures involving this jurisdiction may attract additional scrutiny or reporting obligations under EU member state rules.

Based on our scoring model, Bahrain ranks highest for Founder / Entrepreneur and High Net Worth Individual. It offers a strong proposition for founder / entrepreneur (score: 77/100). It offers a strong proposition for high net worth individual (score: 77/100).