News brief · Taxation
Qatar: 0% income tax and 0% VAT, the Gulf exception
Comparing Gulf states on tax rates alone teaches you nothing: they are zero or nearly zero everywhere. What sets them apart is indirect taxation, residency routes and the real cost of settling with a family.
By Editorial team · on July 5, 2026
The rates, which distinguish nothing
None of the Gulf states taxes personal income. In the Emirates, the rate applicable to individuals' income is 0%1; in Bahrain, it is 0%2.
For companies, there are differences but they remain small: 10%3 in Qatar, 9%4 in the Emirates above AED 375,0005 of profit, and 0%6 in Bahrain outside the hydrocarbons sector.
A global minimum tax has also been introduced in these three states for multinational groups within its scope. Small businesses are not affected, but the general direction is the same everywhere.
Comparing these destinations on the personal rate therefore amounts to comparing zeros. The ranking is decided elsewhere.
Indirect taxation, which really makes the difference
Bahrain has applied value added tax at a standard rate of 10%7 since 1 January 2022, having introduced it at a lower rate and then doubled it.
Qatar has not yet introduced it: its rate remains 0%8. It is currently a regional exception, which the authorities themselves present as temporary.
For a household, this difference is far from marginal. A tax at this level weighs on all everyday consumption, in countries where almost everything is imported, and it brings the real cost of living closer to European levels.
It is therefore indirect taxation, not income tax, that really differentiates these destinations for a resident. And it is indirect taxation that is changing.
Entry routes, which are not equal
The property threshold for a residence permit varies widely. Bahrain sets it at BHD 50,0009, or about about $132,00010: the lowest in the region.
Qatar requires QAR 730,00011, or about about $200,00012, and Dubai from AED 2,000,00013, or about about €520,00014, for a 10 years15 permit.
The gap between Bahrain and Dubai is an order of magnitude, for property markets of very different depth. Bahrain's low threshold makes the region accessible to middle-sized fortunes; the trade-off is a narrow, illiquid market.
In all cases, freehold ownership is open to foreigners only in designated areas, and keeping the permit requires keeping the property.
Employer sponsorship also remains the dominant route in all three states, and it has a consequence that independent permits avoid: losing one's job means losing the right of residence, within a short period. This is the main source of insecurity for expatriates in the Gulf, and it weighs more heavily on a family settled with children in school than on a single person.
Permits backed by a property investment are designed precisely to break this link. They turn a residency conditional on an employment contract into a residency conditional on holding an asset — which is another form of dependence, but one the holder controls.
Key takeaways
- Personal rates are zero everywhere: they allow no ranking.
- Value added tax is the real differentiator, and it is spreading across the region.
- The property entry threshold varies by an order of magnitude between Bahrain and Dubai.
- A residence permit is not a certificate of tax residency: without one, no tax treaty can be invoked.
- Housing, schooling and health insurance are the three items that determine a family's budget.
One last criterion, which appears in no tax comparison, deserves to be raised: the depth of the expatriate job market. It determines whether one can bounce back locally if a contract ends, and there is no comparison between Dubai and the region's smaller hubs. For a seconded employee, it is probably the most important parameter of all.
Please note
Sources and verification dates
- 1.
United Arab Emirates: taxation of personal income : 0%
« Taxation — The UAE does not levy income tax on individuals. However, it levies 5 per cent value added tax on the purchase of goods and services, levied at each stage of the supply chain and ultimately borne by the end consumer. — Portail officiel du Gouvernement des Émirats arabes unis (u.ae), « Taxation ». »
u.aeVerified on Nov 2, 2026Verified source
- 2.
Bahrain: general personal income tax : 0%
« Currently, there is no general taxation on the personal income of individuals or corporations and no withholding taxes, and no estate or gift taxes in Bahrain. — Kingdom of Bahrain, « Information on Residency for tax purposes », fiche officielle déposée par le Royaume auprès de l'OCDE (portail CRS). »
oecd.orgVerified on Nov 2, 2026Verified source
- 3.
Qatar: tax rate on the taxable income of companies : 10%
« Article 9 The tax rate shall be ten percent (10%) of the taxpayer's taxable income during the tax year. »
gta.gov.qaVerified on Nov 2, 2026Verified source
- 4.
United Arab Emirates: corporate tax rate above the threshold : 9%
« CT Rate — As per Ministry of Finance, CT rates are: 0 per cent for taxable income up to AED 375,000 ; 9 per cent for taxable income above AED 375,000 […] The Federal Decree-Law applies to financial years beginning on or after 1 June 2023. — Portail officiel du Gouvernement des Émirats arabes unis (u.ae), « Corporate tax » (Federal Decree-Law No. 47 of 2022). »
u.aeVerified on Nov 2, 2026Verified source
- 5.
United Arab Emirates: taxable profit below which corporate tax is zero : AED 375,000
« As per Ministry of Finance, CT rates are: 0 per cent for taxable income up to AED 375,000 »
u.aeVerified on Nov 2, 2026Verified source
- 6.
Bahrain: general corporate income tax : 0%
« Currently, there is no general taxation on the personal income of individuals or corporations and no withholding taxes, and no estate or gift taxes in Bahrain. — Kingdom of Bahrain, « Information on Residency for tax purposes » (OCDE). Exceptions : sociétés pétrolières et gazières (46 %) et, depuis le 1er janvier 2025, groupes multinationaux ≥ 750 M€ de chiffre d'affaires soumis au Domestic Minimum Top-up Tax de 15 % (Decree-Law No. (11) of 2024). »
oecd.orgVerified on Nov 2, 2026Verified source
- 7.
Bahrain: standard rate of value added tax : 10%
« A standard rate of 10% Value Added Tax (VAT) has been applied in the Kingdom of Bahrain from 1 January 2022. »
bahrain.bhVerified on Nov 2, 2026Verified source
- 8.
Qatar: value added tax rate : 0%
« Taxes in Qatar — Global Minimum Tax ; Income Tax (« 10% on taxable income, applicable across all activities ») ; Capital Gains Tax ; Withholding Tax ; Excise Tax. — General Tax Authority, page « Taxes in Qatar » : aucune taxe sur la valeur ajoutée n'y figure ; la TVA prévue par l'accord-cadre du CCG n'a pas été mise en œuvre au Qatar. »
gta.gov.qaVerified on Nov 2, 2026Verified source
- 9.
Bahrain: minimum property value qualifying for the self-sponsored residence permit : BHD 50,000
« Certified copy of ownership title deed (property value not less than 50,000 BHD) »
npra.gov.bhVerified on Nov 2, 2026Verified source
- 10.
Bahrain: approximate equivalent of the self-sponsorship real estate threshold : $132,000
« Self-Sponsorship Residence Permit and Re-entry Visa (For foreigners who own property in Bahrain) — Certified copy of ownership title deed (property value not less than 50,000 BHD) ; Evidence of a stable income of 500 BHD or more ; Self-sponsorship residence permit for durations of 2, 5, or 10 years (fees 200 / 400 / 600 BHD). — Nationality, Passports & Residence Affairs (NPRA), ministère de l'Intérieur. BHD 50 000 = 132 980 USD (parité fixe 1 BHD = 2,6596 USD). »
npra.gov.bhVerified on Nov 2, 2026Verified source
- 11.
Qatar: minimum value of the property or its usufruct granting a residence permit : QAR 730,000
« Article (7) […] 2. Value of the real estate or its usufruct shall not be less than (730,000) seven hundred and thirty thousand Riyals — Decision of the Council of Ministers No. (28) of 2020. Montant légal en riyals (QAR 730 000 ≈ 200 500 USD). »
almeezan.qaVerified on Nov 2, 2026Verified source
- 12.
Qatar: approximate equivalent of the real estate threshold granting residency : $200,000
« Article (7) — Granting of the residency permit to the owners and users of the real estate shall be in accordance with the provisions of Law No. (21) of 2015 referred to, and according to the following: 1. Period of residency in the State shall not be less than ninety days per year, whether continuously or intermittently. 2. Value of the real estate or its usufruct shall not be less than (730,000) seven hundred and thirty thousand Riyals, and if the value of the real estate or its usufruct is (3,650,000) three million, six hundred and fifty thousand Riyals or more the owner of the real estate or its user shall get the privileges prescribed for holders of the permanent residency card in healthcare, education and investment. — Decision of the Council of Ministers No. (28) of 2020 (Al Meezan, portail juridique du Qatar). QAR 730 000 = 200 549 USD à la parité fixe 3,64. »
almeezan.qaVerified on Nov 2, 2026Verified source
- 13.
Dubai: minimum purchase value of a property qualifying for the investor Golden Visa : AED 2,000,000
« Golden Visa application - Investor — This service allows the real estate investor owning a property the purchase value of which is equal to or more than 2 million AED at the time of purchase, to apply for a 10-years renewable residence permit. The husband or wife, children and parents […] — Dubai Land Department (Government of Dubai). »
dubailand.gov.aeVerified on Nov 2, 2026Verified source
- 14.
Dubai: approximate equivalent of the Golden Visa real estate threshold : €520,000
« […] a property the purchase value of which is equal to or more than 2 million AED at the time of purchase — Dubai Land Department. AED 2 000 000 = 544 600 USD (parité fixe 3,6725) ≈ 465 000–500 000 € au cours 2026. »
dubailand.gov.aeVerified on Nov 2, 2026Verified source
- 15.
Dubai: duration of the residence visa granted to the real estate investor : 10 years
« This service allows the real estate investor owning a property the purchase value of which is equal to or more than 2 million AED at the time of purchase, to apply for a 10-years renewable residence permit. »
dubailand.gov.aeVerified on Nov 2, 2026Verified source