How is crypto taxed in Bahrain?

There is no crypto tax for individuals in Bahrain. The kingdom does not levy personal income tax or capital gains tax, so a resident's crypto profits are not taxed there. Tax questions mainly arise for businesses, through VAT and, for very large groups, a minimum top-up tax, as of October 2026.

Is there crypto tax in Bahrain?

Not on personal gains. PwC lists Bahrain's personal income tax and capital gains tax as not applicable, for both individuals and corporations. Corporate income tax is 46% for oil companies and 0% for other companies, PwC says, though a 15% domestic minimum top-up tax (DMTT) may apply. The International Bar Association explains that the DMTT took effect on January 1, 2025, under Decree Law No. 11 of 2024, and covers multinational groups with consolidated revenue above EUR 750 million.

So a resident who buys crypto and later sells it at a profit owes no Bahraini tax on the gain. People who are citizens or tax residents of another country may still owe tax there. The UAE guide shows how a similar no-income-tax system works next door.

Does VAT apply to crypto in Bahrain?

Bahrain has charged VAT at a standard 10% since January 1, 2019. On January 1, 2022, the National Bureau for Revenue updated its Financial Services VAT Guide to explain how crypto is treated, according to Crowe. The guide sorts tokens into types:

• Payment tokens fall outside the scope of VAT.
• Utility tokens are treated like single-purpose or multipurpose vouchers.
• Asset tokens are generally exempt, unless sold with an extra fee, commission or discount above market value.
• Hybrid tokens are judged case by case.

The fee exception matters mainly for exchanges, brokers and other crypto businesses that charge for their services.

Is crypto legal in Bahrain?

Yes. The Central Bank of Bahrain (CBB) regulates crypto firms. In 2019 the exchange Rain received a licence under the CBB's crypto-asset module after going through its regulatory sandbox, Bitcoin Magazine reported. On July 4, 2025, the CBB issued a framework for licensing stablecoin issuers, allowing single-currency stablecoins backed by the Bahraini dinar, the US dollar or another fiat currency it accepts. More detail is in is crypto legal in Bahrain, and stablecoins are explained in what is a stablecoin.

Rules differ by country and change often. Check the tax authority or a qualified professional for your own situation.