DoubleTaxationTaxes on salary: Bahrain preliminary data
How much income tax and social contributions are paid on a salary in Bahrain, what a sole proprietor and a company pay, and which special regimes exist. Preliminary data.
Preliminary data: headline rates from official sources and bulletins of international organisations, without reliefs or special rules; being refined.
Calculation for a gross salary of €60,000 per year
| Gross salary | BHD 26,443 ≈ €60,000 |
|---|---|
| Employee contributions | BHD 264 ≈ €600 |
| Take-home pay | BHD 26,178 ≈ €59,400 |
| Employer contributions and payroll taxes | BHD 2,168 ≈ €4,920 |
| Employer's labour cost | BHD 28,611 ≈ €64,920 |
Only some of the country's direct taxes and levies are counted: income tax on wages and compulsory contributions. Not counted: property and real-estate taxes; taxes on dividends, interest and other investment income; inheritance and gift taxes; indirect taxes such as VAT, excise and customs duties.
Taxes for sole proprietors and companies
Tax and contributions on the profit for a year; expenses are 10% of revenue, the company pays its profit out to the owner. Reliefs and local taxes are not included.
| Annual revenue | €30,000 BHD 13,221 | €60,000 BHD 26,443 | €120,000 BHD 52,885 |
|---|---|---|---|
| Sole proprietor | BHD 0 0.0 % | BHD 0 0.0 % | BHD 0 0.0 % |
| Company | BHD 0 0.0 % | BHD 0 0.0 % | BHD 0 0.0 % |
Special tax regimes
There are no special regimes for individuals.
Tax residence
The tax residence check does not cover Bahrain yet.
Assumptions
- Calculated with the OECD Taxing Wages methodology: income tax including local taxes plus employee social security; single person without children, tax year 2026, ECB rate of 2 January 2026.
- Exchange rate: 1 EUR = 0.44071 BHD (Central Bank of Bahrain — fixed peg BHD 0.376 = USD 1, 02/01/2026) ↗
Sources
- US SSA — Social Security Programs Throughout the World: Asia and the Pacific 2014, Table 4 contribution rates
- Central Bank of Bahrain
- Ministry of Finance and National Economy — Amiri Decree 22/1979, Bahrain Income Tax Law (unofficial translation)
- National Bureau for Revenue — What is the Domestic Minimum Top-up Tax
- Social Insurance Organization — End of service gratuity for non-Bahrainis
- Social Insurance Organization — Amendment decrees (Law No. 14 of 2022, contribution shares)
Data checked: 08/11/2026. An indicative calculation for a typical case. Not tax advice.