Bhutan Tax Rates
Bhutan operates a progressive income tax system with rates from 0% to 25%, administered by the Department of Revenue and Customs. The standard corporate tax rate is 25%, and a 7% sales tax applies to most goods and services. Bhutan measures prosperity through Gross National Happiness rather than GDP alone, and its tax system reflects a balance between revenue needs and the country's unique development philosophy.
Top Income Tax Rate
25%
Corporate Tax Rate
25%
VAT / Sales Tax
7%
Capital Gains Tax
10%
Detailed Tax Information
Income Tax Brackets
Bhutan's personal income tax applies progressive rates from 0% to 25%. The first Nu 300,000 of annual income is exempt. The system is relatively simple with five brackets. Residents are taxed on income sourced in Bhutan.
| Income Range | Tax Rate |
|---|---|
| BTN 0 – BTN 300K | 0% |
| BTN 300K – BTN 400K | 10% |
| BTN 400K – BTN 650K | 15% |
| BTN 650K – BTN 1.0M | 20% |
| BTN 1.0M+ | 25% |
Corporate Tax
Bhutan's corporate income tax rate is 25% on taxable income. Companies in priority sectors and Special Economic Zones may qualify for reduced rates and tax holidays.
Standard Rate
25%
Capital Gains Tax
Capital gains on the sale of property and other assets are taxed at 10% in Bhutan.
Rate
10%
VAT / Sales Tax
Bhutan levies a sales tax at 7% on most goods. Certain essential items are exempt. Bhutan does not have a formal multi-stage VAT system but rather a single-stage sales tax.
Standard Rate
7%
Cryptocurrency Tax
Bhutan has taken a unique approach to cryptocurrency. The Royal Government of Bhutan, through its investment arm Druk Holding & Investments, has engaged in Bitcoin mining using the country's abundant hydroelectric power. Individual crypto trading is not formally regulated or taxed.
Tax Treaties
Bhutan has a very limited tax treaty network, with India being the most significant partner given the close economic ties between the two countries.
Treaty Network
5
Double taxation agreements
Major treaty partners:
Key Details
Relocate to Bhutan
See how much you could save by moving here from your current country.
+$19K
Tax in United States
$24K
24.4% effective
Tax in Bhutan
$5K
5% effective
You Save
79.5%
less tax annually
US Citizens: Important Note
US citizens are taxed on worldwide income regardless of residence. You'll still need to file US taxes, though the Foreign Earned Income Exclusion and Foreign Tax Credit may reduce your liability.
