What Is the Tax Rate of Gold in Bahrain
A Deeply Informative, Practical Guide (2026)
Quick Snapshot: Key Tax Facts on Gold in Bahrain
- VAT (Value Added Tax): • Standard 10%, generally applies to gold and gold jewellery.
- Customs Duty (Import Tax): • Usually 5% on imported gold items entering Bahrain.
- Zero‑Rated Export or Trade Zones: This may apply under specific GCC agreements and special certificates—but conditions vary.
In simple terms: If you buy gold in Bahrain to wear or resell locally, you’ll pay VAT and possibly import duty if it was brought from abroad.
Understanding Taxes on Gold: Step‑By‑Step
To grasp how gold is taxed in Bahrain, let’s break it down logically:
Step 1 — Is It VAT‑Applicable?
Bahrain introduced VAT on 1 January 2019, and increased the rate to 10% from 1 January 2022.
- Most goods and services—including gold jewellery and finished gold products—are subject to 10% VAT.
- Investment gold under strict criteria can be zero‑rated (0%) if it meets purity standards and documentation requirements.
👉 Practical tip: Always ask the seller whether the gold (especially investment bars) qualifies for zero‑rating—that can save you 10%.
Step 2 — Customs Duty on Imported Gold
If the gold item is imported into Bahrain from outside the Gulf Cooperation Council (GCC), a customs duty of around 5% may apply.
- This 5% is charged on the CIF value (cost + insurance + freight).
- Gold from GCC partner states may be duty‑free under unified customs policies.
Step 3 — Exemptions & Zero‑Rate Possibilities
Certain gold transactions—like investment gold with purity ≥99% or gold destined for export—might be zero‑rated for VAT under the GCC VAT Agreement.
- Make sure you get the official certificates when claiming zero‑rating.
- Jewelers and gold traders use these frequently, but paperwork must be perfect.
Example Scenarios: How It Works in Real Life
Scenario 1: Buying a Gold Necklace in Manama
You purchase a 22K gold necklace for BHD 500:
| Cost Element | Amount |
|---|---|
| Necklace Price | BHD 500 |
| VAT (10%) | + BHD 50 |
| Total You Pay | BHD 550 |
Key Insight: VAT is charged on the retail sale, not just the metal value.
Scenario 2: Importing Gold from Outside GCC
Let’s say you import gold jewellery worth BHD 1,000:
| Cost Element | Amount |
|---|---|
| CIF Value | BHD 1,000 |
| Customs Duty (5%) | + BHD 50 |
| VAT on Total (10%) | + BHD 105 |
| Total Tax Paid | BHD 155 |
Import duty adds to your taxable base for VAT.
Comparison: Bahrain vs. other GCC Tax Approach
| Country | VAT on Gold Jewellery | Import Duty |
|---|---|---|
| Bahrain | 10% standard (some zero‑rated) | ~5% |
| Saudi Arabia | 15% on jewellery (with varied treatment for investment gold) | Depends on origin |
| UAE & Qatar | Similar VAT rules; specifics vary |
Bahrain’s 10% VAT is lower than Saudi Arabia’s 15% on many types of jewellery. This is one reason why shoppers sometimes prefer to buy gold in Bahrain.
Real Experience + Practical Buying Tips
From talking with friends and traders in Bahrain’s gold markets:
- Always check the invoice: Whether you’re buying jewellery or bullion, the seller should clearly list VAT and any duty.
- Ask about certificates: Especially for investment gold (“bullion bars”)—proper documentation can make the difference between 0% and 10% VAT.
- Negotiate manufacturing costs separately: Sometimes jewellers combine making fees with metal value, affecting your VAT base.
People Also Ask (and Answers)
1. Is there VAT on gold in Bahrain?
Yes—standard VAT is 10%, generally applied to jewellery and gold sales.
2. Do I pay tax if I bring gold into Bahrain from abroad?
You may pay customs duty (~5%) plus VAT, unless exemptions apply (e.g., GCC origin).
3. Is investment gold taxed differently?
Yes. Investment‑grade gold (e.g., 99% pure bullion) may be zero‑rated for VAT under specific conditions.
4. Does Bahrain charge income tax on gold profits?
No—Bahrain generally does not impose personal income tax, so selling gold gains typically isn’t taxed as income.
5. How do I claim zero‑rating on gold exports?
You must follow GCC VAT procedures and keep strict documentation to prove export status.
Common FAQs
Q: What if I buy gold online from abroad?
You may pay customs duty and then VAT when the item enters Bahrain. Always check shipping paperwork.
Q: Can tourists get VAT refunds on gold purchases?
Some GCC states offer refunds on exported purchases; check local rules at point of sale and airports.
Q: Do gold coins have the same tax rules?
Gold coins for investment often fall under zero‑rating if purity and documentation qualify.
Final Takeaway
👉 Bahrain’s tax regime on gold is relatively simple compared to some neighbors:
- A 10% VAT mostly applies to jewellery and gold products.
- Import duty of around 5% usually applies to gold imported from outside the GCC.
- Strategic planning and proper certification can reduce tax for investment‑grade gold.
If you’re buying or importing gold, understanding these rules can save you real money—so ask the right questions before the purchase.
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