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LMRA Work Permit Tax Guide

Understanding the cost of employing expatriates in Bahrain.

EMPLOYMENTMarch 2026 · 5 min read

Work Permit Costs

Fee Type	Amount	VAT Treatment
Work permit (new)	BD 200/year	Government fee — outside VAT
Work permit renewal	BD 200/year	Government fee — outside VAT
Flexi permit	BD 450/year	Government fee — outside VAT
Labour market levy	BD 300-500/year	Government levy — outside VAT
Recruitment agency	Varies	Standard-rated 10%

Key Considerations

📋 Government fees are outside the scope of VAT — no input tax recovery

📋 Recruitment agency fees are standard-rated — input VAT recoverable if for business

📋 Employee visa costs paid by employer — not a taxable benefit for GOSI purposes

📋 Late permit renewal — BD 100 per month fine from LMRA

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