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Tax Incentives & Reliefs

Every incentive and relief available to businesses in Bahrain.

INCENTIVESMarch 2026 ยท 6 min read

EDB Business Incentives

๐Ÿญ Industrial Land

Subsidized industrial plots at Bahrain International Investment Park (BIIP), Salman Industrial City. Long-term leases at below-market rates for qualifying manufacturers.

๐Ÿ‘ฅ Tamkeen Support

Training subsidies, wage subsidies for Bahraini employees, and enterprise development grants. Not taxable income โ€” treated as government subsidies outside VAT scope.

๐Ÿ—๏ธ Infrastructure

Government-funded infrastructure for qualifying projects. Utilities at competitive rates. Expedited permitting through the Investors Centre one-stop shop.

๐ŸŒ Free Zones

Bahrain Logistics Zone, Bahrain International Airport Free Zone. No customs duty on goods within the zone. VAT still applies to supplies made within Bahrain.

DMTT Reliefs

Substance-Based Income Exclusion (SBIE): Under Pillar Two, entities with genuine economic substance in Bahrain can exclude income equal to 5% of payroll costs + 5% of tangible asset book values from their GloBE income. This is the most significant relief available โ€” rewarding companies with real operations in Bahrain.

Incentive Planning

We help you access every incentive you qualify for.

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