Bahrain vs Portugal
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.
๐ต๐น Portugal โ Municipal & Regional Taxes
Portugal's 18 districts and 308 municipalities levy a municipal IRS surcharge (Derrama Municipal) of up to 1.5% of taxable income on residents. Municipalities also apply the Derrama Municipal on corporate profits (up to 1.5%). Madeira and Azores autonomous regions have their own lower tax regimes: Madeira has a 14.7% corporate rate in the MIBC (international business centre). Real estate transfer taxes (IMT) are municipal. The NHR (Non-Habitual Resident) regime attracted many foreigners until 2024 when it was replaced by IFICI.
Bahrain vs Portugal: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ต๐น Portugal has a higher top income tax rate (0% vs 13.25โ48%). ๐ง๐ญ Bahrain is more favourable for high earners.
๐ VAT/Sales Tax: Portugal has a higher consumption tax (10% vs 6โ23%).
๐ข Corporate Tax: ๐ง๐ญ Bahrain offers a lower corporate rate (0% vs 19%), which can influence business location decisions.
๐ Capital Gains: ๐ง๐ญ Bahrain taxes investment gains at a lower rate (0% vs 28%), benefiting investors.