Jurisdictions · Bahrain
Family Office in Bahrain: Rules, Costs and Tax in 2026
The Central Bank of Bahrain (CBB) has had a family office licence since September 2023 under the Family Offices module of its Rulebook Volume 4, but an office that serves only family clients, is wholly owned by family clients, is controlled by family members and does not hold itself out to the public is outside that licence. Bahrain has no personal income tax, no estate or gift tax and, in 2026, no corporate income tax outside oil and gas apart from a 15% Domestic Minimum Top-up Tax on large multinational groups from 2025 (PwC, EY); on 29 December 2025 the Cabinet sent the legislature a draft law for a 10% tax on larger local companies' profits, aimed at 2027. Muslim inheritance follows the 2017 Family Law applied by the Sharia courts, and NPRA announced in November 2025 a Golden Residency for property owners from BHD 130,000, while the government portal still says BHD 200,000. [1, 2, 3, 4, 5, 6, 7, 8, 9, 10]
Best for: Families who want a single family office company without a financial services licence in a country with no personal income tax and, in 2026, no corporate income tax outside oil and gas (a 10% tax on larger local companies is proposed for 2027), or a CBB-licensed office serving several families that are accredited investors.
At a glance
| Licence | No CBB licence if only family clients, wholly family-owned and controlled, not public |
|---|---|
| Minimum wealth | No amount for the office; Glossary: family clients must be accredited investors (USD 1m) |
| Who counts as family | Descendants of a common ancestor, spouses, step and adopted children; family trusts |
| Serving several families | CBB family office licence to serve families that are accredited investors |
| Law and courts | Sharia a principal source of law; Sharia and civil courts; opt-in BICC can sit in English |
| Substance | No rule for one family; licensees need 2 Bahrain-resident executives, on-site AML |
| Holding vehicles | Joint stock companies, LLCs, SPCs, partnerships, holding companies; trusts (2006 law) |
| Corporate tax | 0% outside oil and gas (46%); 15% DMTT for EUR 750m+ groups; 10% tax drafted for 2027 |
| Family office tax | No family office regime; in 2026 no company, gains or withholding tax outside oil and gas |
| Personal income tax | No personal income tax |
| Inheritance tax | No inheritance, estate or gift tax; 2% stamp duty on real estate transfers |
| Wills and succession | Sharia for Muslims (will up to one third); law of their country for foreign non-Muslims reported |
| Residence | Golden Residency: property from BHD 130,000 (NPRA 2025; portal: 200,000); family can join |
| Time to set up | No official figure found |
| Official fees | CBB licence: BHD 100 to apply, BHD 2,000 to 6,000 a year; no CBB fee for one family |
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Licence and who qualifies
How is a family office licensed in Bahrain?
No CBB licence is needed if the office stays within FO-1.1.2 of the CBB Rulebook Volume 4 Family Offices module: 'A person does not carry on an activity constituting a family office service' if '(a) The family office provides family office services only to family clients; (b) The family office is wholly-owned by family clients and controlled by the family members; and (c) The family office does not hold itself out to provide regulated services to the public.' Such an office is set up as an ordinary company registered with the Ministry of Industry and Commerce (MOIC) through the Sijilat system, under the Commercial Companies Law No. 21 of 2001 and the Commercial Registration Act No. 27 of 2015. The CBB said on 18 September 2023 that its family office rules 'do not encompass existing family offices unless they expand the scope of their activities by providing investment services to other parties'. [1, 2, 3, 12]
What is the minimum wealth for a family office in Bahrain?
No amount is set for the family office itself: FO-1.1.2, which describes an office outside the CBB licence, states no wealth figure, and neither does the rest of the Family Offices module. FO-1.1.2 uses the term 'family clients', which the CBB Volume 4 Glossary defines for the Family Office Services Module and closes with 'All family clients must also fall within the definition of accredited investors'; for licensed offices, FO-1.1.3 also says clients must be accredited investors. The Glossary defines accredited investors as individuals with 'a minimum net worth (or joint net worth with their spouse) of USD 1,000,000, excluding that person's principal place of residence', or companies, partnerships, trusts or other commercial undertakings with financial assets available for investment of not less than USD 1,000,000, and lets individuals and undertakings elect in writing to be treated as accredited investors if they meet two of three tests (for example a financial assets portfolio of USD 500,000 or more); no CBB text or guidance found says whether this test applies to an office relying on the FO-1.1.2 exclusion. [1, 11]
Who counts as family?
The CBB Glossary defines 'family clients' for the Family Office Services Module as (a) a family member of a single family, (b) trusts for which the family members are beneficiaries and (c) any company wholly owned, directly or indirectly, by and operated for the sole benefit of one or more family members, and says 'All family clients must also fall within the definition of accredited investors'. Family means one or more individuals who are lineal descendants of a common ancestor, the spouse of the common ancestor, spouses of the lineal descendants, and stepchildren and adopted children of the common ancestor or of the lineal descendants. [1, 11, 13]
Can one office serve several families?
An office that does not meet the FO-1.1.2 criteria, such as one serving several families, needs a CBB family office licence, which the CBB announced on 18 September 2023 as a new category of investment firm under Volume 4 (the 'Family Office Service License'), developed for family offices 'that provide services to multiple wealthy families'. It covers one or more of eight regulated investment services: wealth management advice, investment management, arranging and advising on credit, safeguarding (custody), regulated administration, trust services, operating a collective investment undertaking and insurance advice (FO-1.1.1). Licensees 'must only provide services to families and/or entities owned by family members, which fall within the definition of accredited investors' and 'must not deal with retail clients' (FO-1.1.3); capital must be 'higher than the fixed overhead expenses of the preceding year' (FO-1.1.5), with no fixed minimum amount. [1, 2, 11]
Law, substance and vehicles
Which law and courts apply?
Bahrain's Constitution says 'The Islamic Sharia is a principal source of legislation, and Arabic is its official language' (Article 2, unofficial English translation by the Legislation and Legal Opinion Commission). Law No. (19) of 2017 promulgating the Family Law, issued on 19 July 2017, applies to disputes within the jurisdiction of the Sharia courts, for followers of the Sunni or Jaafari schools (Article 4), and UK Foreign Office guidance (updated 2 February 2026) says the High Civil Court decides family matters of non-Muslims. The Bahrain International Commercial Court (BICC), launched on 5 November 2025 and based principally on the Singapore International Commercial Court (Singapore Judiciary), was set up by Royal Decree No. 9 of 2024 and hears international commercial disputes only with the parties' consent; HSF Kramer says proceedings may be in English with foreign law and that the court seeks to blend civil and common law practice, Al Tamimi says English and Arabic if certain requirements are met, and unless the parties object appeals go to the International Committee of the Singapore International Commercial Court, with the BICC's own appellate body as an alternative (Al Tamimi, February 2026; HSF Kramer, November 2025). [8, 14, 15, 16, 17, 18]
What substance is required?
No office, staff or spending rule was found for a single family office outside the CBB licence. A CBB family office licensee must be headed by a Board of Directors with a formal board charter, appoint at least two senior executives resident in Bahrain, one of them the CEO, give its compliance and AML functions (which may be combined) an on-site presence, in-house or seconded, and may not outsource compliance or AML/CFT (FO-2.1.1 to FO-2.1.5). It must keep books and records available for CBB inspection in Bahrain for at least ten years, file audited accounts within 3 months of year end and semi-annual prudential returns (FO-2.2.7, FO-3.1.1, FO-3.1.2). Al Tamimi mentions economic substance returns among Bahrain's tax rules; whether they apply to family offices was not checked. [1, 19]
Which holding vehicles are available?
MOIC's procedures guide covers the Bahraini public joint stock company (minimum capital BHD 1,000,000), the closed joint stock company (BHD 250,000), the limited liability company (2 to 50 partners, no minimum capital), the partnership company, the company limited by shares (BHD 20,000), the holding company, the foreign branch and the sole proprietorship; the EDB's registration guide also lists the Single Person Company (SPC). A CBB family office licensee may be a Bahraini B.S.C., another legal form under the Commercial Companies Law acceptable to the CBB, or a Bahrain branch of an overseas investment firm (FO-1.1.4). Trusts are governed by Law No. (23) of 2006 regulating Financial Trusts: at least one trustee must be licensed or 'the Trust shall be void' (Article 10), the trust is valid only after registration in the Register of Financial Trusts (Article 33) and it may last up to 100 years (Article 3); no foundation law was found in the sources opened. [1, 12, 20, 21]
Tax
What is the corporate tax rate?
In 2026 there is no corporate income tax outside oil and gas: the EDB says the only exception is a 46% corporate tax on profits from the oil and gas sector, and there is no withholding tax on dividends or payments. Decree-Law No. 11 of 2024 adds a 15% Domestic Minimum Top-up Tax (DMTT) for fiscal years starting on or after 1 January 2025 on Bahraini entities of multinational groups with consolidated revenue of at least EUR 750 million in two of the four preceding fiscal years, administered by the National Bureau for Revenue (PwC and EY, September 2024; EY says 'exceeding'). On 29 December 2025 the Cabinet referred to the legislature a draft law 'to impose 10% tax on the profits of local companies whose annual revenues exceed BHD 1 million or net annual profits exceed BHD 200,000', applied to profits above BHD 200,000, 'with the objective of implementing the draft law in 2027' (Prime Minister's Office); KPMG still described it as a draft on 18 May 2026, and no enacted law was found. [3, 5, 6, 7, 22]
Are there tax incentives for family offices?
No tax regime specific to family offices was found. In 2026, outside oil and gas, Bahrain has no corporate income tax, capital gains tax or withholding tax (EDB), and VAT is 10% on most goods and services (EDB); a family business group with consolidated revenue of at least EUR 750 million may fall under the 15% DMTT (PwC, EY). Under the draft corporate income tax law, a family holding company with revenues above BHD 1 million or profits above BHD 200,000 would pay 10% on profits above BHD 200,000 from 2027 (Prime Minister's Office), while KPMG (March 2026) reports that the draft exempts dividends, other profit distributions and capital gains on a 'participation interest', with conditions left to regulations, and makes investment funds tax-transparent. [3, 5, 6, 7, 23]
Is there personal income tax?
There is no personal income tax: the EDB says Bahrain has 'no corporate income tax, personal income tax, wealth tax, capital gains tax, or withholding tax', apart from oil and gas, and Bahrain's tax residency information published by the OECD says there is 'no general taxation on the personal income of individuals'. Deloitte (March 2024) also reports no individual income tax and no net wealth tax; social insurance contributions apply to employees. KPMG (March 2026) reports that the draft corporate income tax law would treat personal employment income and real estate investment income as not taxable, but could cover individuals carrying on a business above its thresholds. [3, 4, 23, 24, 25]
Is there inheritance or estate tax?
There is no inheritance, estate or gift tax: Bahrain's tax residency information published by the OECD (undated; it names the National Bureau for Revenue as contact point) says there are 'no estate or gift taxes in Bahrain', and Deloitte's Bahrain Highlights (March 2024) says 'There is no inheritance tax or estate tax'. Stamp duty of 2% of the property value (1.7% if paid within 60 days) is levied on transfers and/or registration of real estate (Deloitte; Al Tamimi, February 2025); no source says whether real estate passing to heirs pays it. [4, 19, 25]
Succession and residence
How do wills and succession work?
For Muslims, the Family Law (Law No. 19 of 2017) applies to disputes within the jurisdiction of the Sharia courts, and inheritance, gifts, wills and endowments follow the Sunni or Jaafari school of the deceased (Articles 4 and 5); the UK FCDO (February 2026) adds that a list of heirs is obtained from the Ministry of Justice, Islamic Affairs and Waqf and that 'Muslims may issue a will to the third of their estate only (conditions apply)'. For non-Muslim foreigners the law of the deceased's country applies (Law No. 11 of 1971, Article 1, per the GLMM summary; FCDO); wills can be notarised in Bahrain, and the High Civil Court distributes assets according to the will whether it was made in Bahrain or abroad (FCDO). For Bahraini non-Muslims, the Supreme Court held on 1 December 2025 that courts apply the customs of the religious community, which may include foreign customs (Conflict of Laws, April 2026); families can also use trusts under the 2006 Financial Trusts Law, which Al Tamimi (2020) says may be structured in accordance with Sharia principles. [8, 15, 21, 26, 27, 28]
Reported by the sources named, not confirmed by an official source.
Can the family get residence?
The Golden Residency is issued by Nationality, Passports and Residence Affairs (NPRA) of the Ministry of Interior. On 26 November 2025 NPRA announced that the minimum real estate investment was lowered to BHD 130,000 (USD 345,000) from BHD 200,000, but the eGovernment portal's service page for foreign property owners still asks for a title deed with a property value of at least BHD 200,000; other routes cover people who have worked in Bahrain for at least five years with an average monthly salary above BHD 2,000, retirees who worked in Bahrain for at least 15 years with an average monthly pension of at least BHD 2,000, non-resident retirees with an average monthly pension above BHD 4,000, and talented individuals. The holder's spouse, children and parents can enrol for their own 10-year Golden Residency (eGovernment portal); it costs BHD 5 to apply and BHD 300 for 10 years, takes 5 working days to process, and NPRA calls it 'a permanent residency, subject to a standard administrative fee of BHD 300 every 10 years'. [9, 10, 29, 30, 31, 32]
Time and fees
How long does set-up take?
Not found in official sources. MOIC's procedures guide gives a maximum of five business days only for preliminary approval of an industrial licence, the EDB registration guide gives no timeline, and no processing time for the CBB family office licence was found. [1, 12, 20]
What are the official fees?
Indicative, from the CBB Rulebook Family Offices module (October 2023): a CBB family office licence has a non-refundable application fee of BHD 100 and an annual licence fee of 0.25% of relevant operating expenses, with a floor of BHD 2,000 and a cap of BHD 6,000, new licensees paying the floor for the first year (FO-1.1.9). A single family office within the FO-1.1.2 exclusion pays no CBB fee; MOIC's procedures guide lists a BHD 10 municipal fee and BHD 2 for a printed commercial registration certificate but no full registration fee schedule. Golden Residency: BHD 5 application fee and BHD 300 for 10 years (eGovernment portal and NPRA, accessed 19 October 2026). [1, 10, 12, 30]
Pros and cons
Pros
- An office that serves only family clients, is wholly owned by family clients, is controlled by family members and does not hold itself out to the public needs no CBB licence (FO-1.1.2).
- No personal income tax, no estate or gift tax and, in 2026, no corporate income tax outside oil and gas apart from the 15% DMTT for multinational groups with revenue of at least EUR 750 million.
- Golden Residency for foreign property owners from BHD 130,000 (NPRA, November 2025; the government portal still says BHD 200,000), with the holder's spouse, children and parents able to get their own, for BHD 300 every 10 years.
Cons
- Muslim estates follow Sharia under the 2017 Family Law and a Muslim can leave by will only up to one third (UK FCDO); the English-capable BICC hears only international commercial disputes the parties agree to bring.
- A draft law sent to the legislature on 29 December 2025 would tax local companies with revenues above BHD 1 million or profits above BHD 200,000 at 10% on profits above BHD 200,000, aimed at 2027.
- Licensed offices may serve only accredited investors (USD 1 million net worth excluding the main home, or by election) and need two Bahrain-resident senior executives; no CBB guidance says whether the test binds unlicensed offices.
