Bahrain vs Germany
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
๐ฐ Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country โ side by side.
๐ง๐ญ Bahrain โ Municipal Fees & Levies
Bahrain has no income tax on individuals and no corporate income tax for most businesses outside the oil sector. Municipalities collect fees for commercial registrations and services. Bahrain introduced VAT at 5% in 2019, raised to 10% in 2022. Social insurance is administered by the Social Insurance Organization (SIO). Bahrain's Economic Vision 2030 aims to diversify from oil. The country is a regional financial hub and attracts holding companies due to its zero-tax environment for most activities.
๐ฉ๐ช Germany โ Trade Tax (Gewerbesteuer) & Church Tax
Germany's 16 Bundeslรคnder apply federal income tax rates uniformly โ no state income tax variation. Municipalities levy Gewerbesteuer (trade tax) on business profits at ~7โ17% effective. Church tax (Kirchensteuer) of 8โ9% of income tax applies to registered members. The solidarity surcharge (Soli) now only applies to the top ~10% of earners.
Bahrain vs Germany: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ฉ๐ช Germany has a higher top income tax rate (0% vs 14โ45%). ๐ง๐ญ Bahrain is more favourable for high earners.
๐ VAT/Sales Tax: Germany has a higher consumption tax (10% vs 7โ19%).
๐ข Corporate Tax: ๐ง๐ญ Bahrain offers a lower corporate rate (0% vs 29%), which can influence business location decisions.
๐ Capital Gains: ๐ง๐ญ Bahrain taxes investment gains at a lower rate (0% vs 25%), benefiting investors.