Effective Tax Rate on Rental Income
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There are no income taxes in Bahrain.
Rental income is not taxed in Bahrain, as there are no income taxes.
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 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.
There are no property taxes in Bahrain.