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Bahrain: Income tax treaty with Guernsey enters into force; tax treaty with Saudi Arabia signed

Guernsey income tax treaty applies from January 1, 2026.

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February 17, 2026

The Bahrain-Guernsey income tax treaty (2024) entered into force on November 26, 2025. The treaty generally applies from January 1, 2026.

In addition, Bahrain on December 3, 2025, signed an income tax treaty with Saudi Arabia that aims to strengthen economic and investment ties and enhance bilateral cooperation between the two countries. The treaty is yet to be published.


For more information, contact a KPMG tax professional in Bahrain:

Mubeen Khadir | mubeenkhadir@kpmg.com

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