Bahrain vs Saudi Arabia
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.
๐ธ๐ฆ 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.
Bahrain vs Saudi Arabia: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ธ๐ฆ Saudi Arabia has a higher top income tax rate (0% vs 0% / 20%). ๐ง๐ญ Bahrain is more favourable for high earners.
๐ VAT/Sales Tax: Saudi Arabia has a higher consumption tax (10% vs 15%).
๐ข Corporate Tax: ๐ง๐ญ Bahrain offers a lower corporate rate (0% vs 20%), which can influence business location decisions.
๐ Capital Gains: ๐ง๐ญ Bahrain taxes investment gains at a lower rate (0% vs 20%), benefiting investors.