WorldTax Compareโ† All Comparisons

Bahrain vs Saudi Arabia
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

๐Ÿ‡ง๐Ÿ‡ญ Bahrain
vs
๐Ÿ‡ธ๐Ÿ‡ฆ Saudi Arabia
Tax Year:

๐Ÿ’ฐ Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country โ€” side by side.

Enter your annual income above to see your personal tax comparison โ†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
0%
No personal income tax
No change
0% / 20%
No personal income tax; competitive positioning maintained
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
10%
10% maintained
No change
15%
15% VAT stable; GCC harmonization efforts
No change
Corporate Tax Rate
Corporate Tax Rate
0%
0% standard; MNC Pillar Two compliance maturing
No change
20%
20% CIT; special economic zone (NEOM etc.) benefits
No change
Capital Gains Tax
Capital Gains Tax
0%
No CGT
No change
20%
20% via CIT framework
No change
Social Security & Payroll
Social Security / Payroll
~19%
SIO contributions stable
No change
~22.5%
GOSI contribution rates stable; expat levy increasing
No change
State, Regional & Local Taxes

๐Ÿ‡ง๐Ÿ‡ญ 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.

๐Ÿ‡ธ๐Ÿ‡ฆ Saudi Arabia โ€” Zakat, Salam & Municipality Fees

Saudi Arabia has no local or regional income taxes on individuals โ€” the Kingdom operates as a unitary state for tax purposes. Municipalities (amanaat) collect fees for commercial licences, land use, and services. Zakat (Islamic wealth levy at 2.5% of Zakat base) applies to Saudi nationals and GCC citizens with business income, instead of income tax. Foreign companies pay CIT at 20%. The government levies municipality fees of 2.5% on commercial and residential rents. Vision 2030 is transforming the fiscal landscape.

โš ๏ธ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025โ€“2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Bahrain vs Saudi Arabia: Key Tax Differences (2026)

๐Ÿ’ฐ Income Tax: ๐Ÿ‡ธ๐Ÿ‡ฆ Saudi Arabia has a higher top income tax rate (0% vs 0% / 20%). ๐Ÿ‡ง๐Ÿ‡ญ Bahrain is more favourable for high earners.

๐Ÿ›’ VAT/Sales Tax: Saudi Arabia has a higher consumption tax (10% vs 15%).

๐Ÿข Corporate Tax: ๐Ÿ‡ง๐Ÿ‡ญ Bahrain offers a lower corporate rate (0% vs 20%), which can influence business location decisions.

๐Ÿ“ˆ Capital Gains: ๐Ÿ‡ง๐Ÿ‡ญ Bahrain taxes investment gains at a lower rate (0% vs 20%), benefiting investors.

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