Tax on property income in Bahrain
Effective Tax Rate on Rental Income |
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| Monthly Income | €1,500 | €6,000 | €12,000 |
| Tax Rate | 0.00% | 0.00% | 0.00% |
| Click here to see a worked example | |||
| Source: Global Property Guide research |
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INDIVIDUAL TAXATION
There are no income taxes in Bahrain.
RENTAL INCOME
Rental income is not taxed in Bahrain, as there are no income taxes.
Municipal Tax
Municipal taxes are levied on individuals renting property. The tax rate varies according to the property (commercial property, unfurnished residential property, furnished residential property).
A 10% municipal tax is levied on all properties leased to expatriates.
CAPITAL GAINS
Capital gains are not taxed in Bahrain.
However, the Bahraini government is considering the introduction of a compulsory 2.5% zakat tax on wealthy individuals and organizations, which is a form of capital tax.
PROPERTY TAX
There are no property taxes in Bahrain.