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Bahrain vs United Arab Emirates
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‡ͺ United Arab Emirates
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
0%
No personal income tax; unlikely to change short-term
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
10%
10% maintained
No change
5%
5% stable; GCC coordination maintained
No change
Corporate Tax Rate
Corporate Tax Rate
0%
0% standard; MNC Pillar Two compliance maturing
No change
9%
Corporate tax compliance and reporting maturing
No change
Capital Gains Tax
Capital Gains Tax
0%
No CGT
No change
0%
No CGT; free zone benefits under review for Pillar Two
No change
Social Security & Payroll
Social Security / Payroll
~19%
SIO contributions stable
No change
~17.5%
Emiratisation targets affecting employer costs
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‡ͺ United Arab Emirates β€” Emirate-Level Fees & Free Zone Benefits

The UAE has no federal income tax on individuals. Emirates impose municipality fees (~5%) on commercial rents and tourism/hotel fees of 10–15%. Free Zones (DIFC, ADGM, Jebel Ali) offer 0–9% corporate rates for qualifying activities. Real estate transfer fees of 4% apply in Dubai. Emiratisation targets are increasing employer costs.

⚠️ 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 United Arab Emirates: Key Tax Differences (2026)

πŸ’° Income Tax: Bahrain and United Arab Emirates have similar top income tax rates (0% vs 0%).

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

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

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