✅ No Capital Gains Tax
Bahrain currently has no capital gains tax for individuals or companies. This includes gains on shares, real estate, private equity, and business disposals. However, Pillar Two DMTT may change this for large MNEs.
Asset Type Treatment
🏠 Real Estate
No capital gains tax. 2% registration fee on transfer at Land Registry. Sale of commercial property is standard-rated for VAT.
📈 Shares & Securities
No tax on share disposals. Share transfers are outside VAT scope. No stamp duty on share transfers.
🏢 Business Sale
Share deal = no VAT. Asset deal = VAT on each asset. TOGC may apply if whole business transferred as going concern.
🌐 Pillar Two Impact
MNEs with €750M+ revenue — gains will be included in GloBE income calculation. Top-up tax may apply from January 2025.