Living in Bahrain: VAT at 10%, visa on arrival and residence as defined by the agreement with France

The official sources we consulted establish regarding Bahrain can be summarized in three points: a VAT rate of 10% since January 2022, a visa issued upon arrival, and the definition of residency in the tax treaty signed with France. The criteria for Bahraini tax residency, personal income tax, and social security are not detailed here. For these points, the source is the Bahraini tax authority, the National Bureau for Revenue (NBR).

VAT and corporation tax

The French Treasury's article of February 22, 2024, states that the VAT rate in Bahrain has been 10% since January 2022. The country's information page on diplomatie.gouv.fr (updated May 11, 2026) mentions the "doubling of the VAT rate on January 1, 2022." The Treasury's information page indicates the year of implementation differently: 2019 in the February 22, 2024 article, and 2018 with an initial rate of 5% in the September 13, 2024 article. This page does not provide a definitive answer.

The VAT registration service on the Kingdom's official portal is for individuals and legal entities, resident or non-resident, who exceed the mandatory threshold. The threshold amount is not indicated on the page being viewed.

According to the article of February 22, 2024, Bahrain was then the only Gulf Cooperation Council country not applying any form of corporate tax, except in the oil sector, with the caveat "for the time being." The article of September 13, 2024, reports the announcement, in September 2024, of a tax on multinationals at a minimum rate of 15% (%), for groups with a total turnover exceeding €750 million. It does not provide an implementation date. None of the articles reviewed mention personal income tax: this point is not detailed here, as it falls under Bahraini legislation and should be verified with the NBR (National Business Register).

Visa and stay

The "Entry and Stay" page on the French Ministry of Foreign Affairs website (updated September 15, 2026) indicates that a visa is required for stays in Bahrain. Visas can be obtained upon arrival at the airport: 15 days for 5 Bahraini dinars (BHD) or 30 days for 12 BHD. This visa can be extended for two additional 30-day stays, up to a maximum of 90 consecutive days, at the discretion of the authorities. An e-visa can be applied for on the Bahraini Ministry of the Interior website (evisa.gov.bh). The passport must be valid for at least six months after entry. The page does not mention residence permits; this is not detailed here and should be verified with the Bahraini authorities.

Residency according to the France-Bahrain convention

The convention of May 10, 1993, defines a resident in Article 4. For France, this is any person subject to tax in France by virtue of their domicile; for Bahrain, any person domiciled or having their place of management in Bahrain. A natural person resident in both states is initially considered to be in the state where they have a permanent home. The text then provides for other criteria, subject to the agreement of the competent authorities; these are described on our page dedicated to the convention.

For an employee resident in one State who works in the other, Article 13, paragraph 2, sets out three conditions: a stay not exceeding 183 days in total, an employer who is not resident in the other State, and remuneration not borne by a permanent establishment or fixed base. Article 19, paragraph 6, excludes, for income covered by Articles 8 to 11, the provisions of the convention with respect to a resident of Bahrain who is not subject to tax there, except for two exceptions related to the Gulf Cooperation Council. Therefore, for this income, resident status alone is not sufficient to invoke the convention.

A new leader taking office: a typical case (fictional profile)

Situation. Thomas, a fictional profile, runs a French company and plans to move to Bahrain with his family.

Issue. He wants to know what the texts establish before choosing his departure date.

Strategy. He has his French tax domicile examined according to article 4 B of the CGI, then his residence within the meaning of the convention, including article 19 § 6. He checks with the NBR the tax due in Bahrain.

Result. No figures are calculated: the local tax rate is not established here, and no tax conclusions are drawn for this profile.

What this page does not cover

It does not specify criteria for Bahraini tax residency, income or wealth tax, social security contributions, long-term residence permits, or local savings. Local taxation is determined through a professional established in Bahrain. Matters pertaining to France, particularly the departure declaration and the accounts to be declared, are addressed in our pages on tax domicile and exit tax.

What changes depending on your situation

• Your nationality and your effective taxation in Bahrain, for Article 19 § 6.
• Your permanent home address and the number of days you are present.
• The nature of your income: salary, dividends, interest, royalties, capital gains.
• Your role: employee, manager, group with over 750 million euros in revenue.

The rule depends on your situation. No results are guaranteed.