With its strategic location, pro-business policies and some of the lowest costs in the Gulf, the Kingdom of Bahrain continues to attract investors as both a place to establish a business and as a gateway through which to enter the markets of the broader Gulf Cooperation Council (GCC) and Middle East and North Africa (MENA) regions.
There are no taxes in Bahrain on income (corporate or personal), sales, capital gains or estates, with the exception, in limited circumstances, of businesses operating in the oil and gas sector in Bahrain. So, whatever you or your business earns, it’s yours. There’s also no tax on dividends or capital gains. So, if you have a subsidiary in Bahrain, the profits and dividends are tax-free.
Increasing inflows of foreign investment and capital reflect the kingdom’s overall dynamism as a destination for business. Bahrain attracted a record-breaking USD6.8 billion in Foreign Direct Investment (FDI) inflows in 2023, according to the United Nations Conference of Trade and Development (UNCTAD) in its latest World Investment Report 2024.
The introduction of corporate tax in neighbouring UAE has only increased Bahrain’s competitive position for businesses exploring their regional options and, with its diversified economy spanning financial services, ICT, logistics and manufacturing, it’s no surprise that Bahrain has become a magnet for international talent.
For employers looking to hire foreign professionals, the ability to navigate Bahrain’s work visa system has therefore become an essential HR requirement. This guide is intended to provide the key information that you need, as well as good practice on how to operate.