Asia-Pacific · BTN
Bhutan
Reviewed 2026-06-21
Top income tax
30%
Self-employed SS
No
VAT
5%
Capital gains
0%
Exit tax
No
Nomad visa
Yes
70
/ 100
Tax efficiency59
Ease to enter79
Ease to exit93
Cost of living50
Internet50
English60
Bhutan taxes residents on worldwide income using a progressive personal scale that starts at 10 percent above an exempt slab and tops out at 30 percent, while the corporate rate was cut to a flat 22 percent under the Income Tax Act 2025. A new 5 percent goods and services tax took effect in January 2026, replacing the old sales tax, and there are no employer or employee social security contributions, no wealth or inheritance tax, and no capital gains tax on personal assets. A blockchain-backed digital nomad and entrepreneur residence programme tied to Gelephu Mindfulness City opened in 2026, though it requires a sizeable refundable token deposit and an annual fee.
Personal income tax
Income tax structureProgressive
Top income tax rate30%
Entry income tax rate10%
Top rate threshold$17,500
Taxation basisWorldwide
Local/state income taxNo
Social security
Self-employed social securityNo
Indirect & other taxes
VAT standard rate5%
Capital gains rate0%
Long-hold CGT exemptionNo
Wealth taxNo
Inheritance/gift taxNo
Property taxNo
Exit & residency
Exit taxNo
EU/EEA deferralNo
Days to trigger residency183 days
Corporate
Corporate income tax rate22%
WHT on dividends10%
CFC rulesNo
Incentives & special regimes
Special expat regimeNo
Immigration & setup
Digital nomad visaYes
Entrepreneur visaYes
Ease of setup3 / 5
Lifestyle
English proficiencyMedium
Civil liberties60
Sources
- Department of Revenue and Customs, Ministry of Finance (Bhutan) — Personal Income Tax (PIT) slabs and rates
- OECD — Revenue Statistics in Asia and the Pacific 2025: Bhutan country note
- KPMG — Bhutan: New GST regime to replace existing sales tax framework
- World Bank — Doing Business: Bhutan ease of starting a business
- Department of Revenue and Customs (Bhutan) — Rules on the Income Tax Act of Bhutan 2025
Informational only. Nothing here is tax, legal, or financial advice. Tax rules change often and vary by personal circumstance. Verify every figure against an official source and a qualified adviser before acting. Figures are re-expressed from public sources and cited per country.