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Bahrain vs Hungary
Tax Rate Comparison

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

πŸ‡§πŸ‡­ Bahrain
vs
πŸ‡­πŸ‡Ί Hungary
Tax Year:

πŸ’° Personal Income Tax Calculator

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

Enter your annual income above to see your personal tax comparison β†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
0%
No personal income tax
No change
15%
Flat 15%; family tax allowances significant
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
10%
10% maintained
No change
5–27%
27% standard maintained; food VAT under review
No change
Corporate Tax Rate
Corporate Tax Rate
0%
0% standard; MNC Pillar Two compliance maturing
No change
9%
9% maintained; supplementary tax for Pillar Two compliance
No change
Capital Gains Tax
Capital Gains Tax
0%
No CGT
No change
15%
15% flat maintained
No change
Social Security & Payroll
Social Security / Payroll
~19%
SIO contributions stable
No change
~28.5%
Stable; employer 13% SZOCHO
No change
State, Regional & Local Taxes

πŸ‡§πŸ‡­ Bahrain β€” 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.

πŸ‡­πŸ‡Ί Hungary β€” Local Business Tax & Communal Levies

Hungary's 19 counties and 3,177 municipalities levy Helyi IparΕ±zΓ©si AdΓ³ (HIPA β€” local business tax) on companies at up to 2% of net revenues. This is a major cost for businesses operating in Hungary. Budapest applies the maximum 2%. Municipalities also set property tax (Γ©pΓ­tmΓ©nyadΓ³) within national caps. Hungary has a uniquely simple income tax structure with a flat 15% rate across all income levels.

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

Bahrain vs Hungary: Key Tax Differences (2026)

πŸ’° Income Tax: πŸ‡­πŸ‡Ί Hungary has a higher top income tax rate (0% vs 15%). πŸ‡§πŸ‡­ Bahrain is more favourable for high earners.

πŸ›’ VAT/Sales Tax: Hungary has a higher consumption tax (10% vs 5–27%).

🏒 Corporate Tax: πŸ‡§πŸ‡­ Bahrain offers a lower corporate rate (0% vs 9%), which can influence business location decisions.

πŸ“ˆ Capital Gains: πŸ‡§πŸ‡­ Bahrain taxes investment gains at a lower rate (0% vs 15%), benefiting investors.

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