Bahrain vs Spain
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.
๐ช๐ธ Spain โ Autonomous Community & Municipal Taxes
Spain's 17 autonomous communities set their own half of income tax. Madrid applies significant reductions while Catalonia has higher regional rates. The Basque Country and Navarre have special tax regimes (concierto econรณmico). Municipal taxes include IBI (property tax) and IAE (business activity tax). Effective top rates (national + regional) range from ~43% (Madrid) to ~54% in some communities.
Bahrain vs Spain: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ช๐ธ Spain has a higher top income tax rate (0% vs 19โ47%). ๐ง๐ญ Bahrain is more favourable for high earners.
๐ VAT/Sales Tax: Spain has a higher consumption tax (10% vs 4โ21%).
๐ข Corporate Tax: ๐ง๐ญ Bahrain offers a lower corporate rate (0% vs 25%), which can influence business location decisions.
๐ Capital Gains: ๐ง๐ญ Bahrain taxes investment gains at a lower rate (0% vs 28%), benefiting investors.