Bahrain Home Middle East Bahrain Taxes and Costs Taxes on Foreigners' Real Estate Rental Income in Bahrain More BH × Bahrain Financial Overview Overview Market in Depth Income Tax et al Tax Example Taxes if Resident Buying Guide Landlord and Tenant Property Inheritance Country Statistics Property Investments Key Contacts Accountants Lawyers Real Estate Agents Tax on property income in Bahrain November 16, 2016 Effective Tax Rate on Rental Income Monthly Income €1,500 €6,000 €12,000 Tax Rate 0.00% 0.00% 0.00% Click here to see a worked example Source: Global Property Guide research INDIVIDUAL TAXATION There are no income taxes in Bahrain. RENTAL INCOME Rental income is not taxed in Bahrain, as there are no income taxes. Municipal Tax Municipal taxes are levied on individuals renting property. The tax rate varies according to the property (commercial property, unfurnished residential property, furnished residential property). A 10% municipal tax is levied on all properties leased to expatriates. CAPITAL GAINS Capital gains are not taxed in Bahrain. However, the Bahraini government is considering the introduction of a compulsory 2.5% zakat tax on wealthy individuals and organizations, which is a form of capital tax. PROPERTY TAX There are no property taxes in Bahrain. Bahrain - More data and information Guide to buying houses and registering property sales in Bahrain Comments Be the first to comment on this article! Login or Register to submit a comment! In order to promote open and spam-free conversations, Global Property Guide moderates commetns on all articles. You can expect that your comment will be published within 24 hours.