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Tax implications for Americans moving to Bahrain?


rndoiron's picture
By rndoiron - Posted on
19 April 2017

My husband and I are toying around with the idea of relocating to Bahrain for his next career chapter. We are from the US, and would like to know what others from the US have experienced as far as their tax situation goes and also, how owning a home the US may complicate or not complicate the situation in Bahrain. Any thoughts are welcome. Thank you!

Meagan's picture
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Last seen: 1 day 23 hours ago
Joined: 07/07/2016

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Cape Town, South Africa

From:
Cape Town, South Africa

Hi there,

As far as I know, the US has a pretty unique tax system which requires Americans to pay tax even if they aren't resident in the US. (This is opposed to the more common tax systems around the world which only require you to pay tax if you are legally resident in the country - i.e. living there for six months or more per year.)

However, Bahrain does appear to have a double-taxation avoidance agreement with the US, so I'm not too sure how that would affect the tax situation as a whole. I found a document on the Bahraini government's website detailing the agreement, but it's a lot of legalese and financial jargon... Here's the link anyway if you want to take a look: www.mof.gov.bh/showdatafile.asp?rid=47&ftype=file1

We also have a page you may find useful: Banking, Money and Taxes in Bahrain. There's a short section about taxes near the bottom of the page.

Ideally you should consult an expat tax professional for detailed information on this issue, although hopefully someone in Bahrain with personal experience in this matter will reply to your question here to at least give you some idea.

Hopefully this all helps you somewhat.

When will you be moving to Bahrain? Have you had a look at potential areas where you might purchase your home?

M
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Anonymous
Anonymous's picture

Thank you SO much for the information. We will check out the links. Have a good day!

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