Bhutan Travel & Relocation Guide

The Last Shangri-La — Gross National Happiness & Himalayan Wonder

Key facts

Frequently asked questions

Is there a tax-free income threshold?

Yes. Personal income up to Nu. 300,000 per year is exempt from PIT; tax applies progressively above that.

What is the top personal tax rate?

The top marginal PIT rate is 30%, applied to taxable income above Nu. 1.5 million, with a possible surcharge for very high earners.

Does Bhutan tax my foreign income?

Bhutan primarily taxes Bhutan-source income. It does not operate a broad worldwide-income tax on temporary foreign residents, but your home country's rules may still apply.

How do I pay tax as a foreign employee?

Your Bhutanese employer registers you for a TPN and withholds PIT/TDS from your salary each month, remitting it to the DRC. You may file an annual return via RAMIS.

Does Bhutan have VAT?

Bhutan has used a Sales Tax and is transitioning to a Goods and Services Tax (GST) at a headline 7% under the GST Act, replacing the older sales-tax structure.

Is healthcare really free?

Yes, basic public healthcare is free for all as a constitutional guarantee. Foreigners can use public facilities, though they may be charged for some services or medicines.

Should I get private health insurance?

Strongly yes. Specialist and emergency care can require evacuation abroad, so international insurance with medical-evacuation cover is essential for relocating foreigners.

Where is the main hospital?

The Jigme Dorji Wangchuck National Referral Hospital (JDWNRH) in Thimphu is the country's top referral facility.

Can I get my regular prescriptions in Bhutan?

Availability of specific medicines can be inconsistent, especially outside Thimphu. Bring a sufficient supply and a copy of your prescription.

Does Bhutan use traditional medicine?

Yes. Traditional medicine (Sowa Rigpa) is formally integrated into the public health system alongside modern medicine.

Can I get by in English?

Yes. English is the medium of instruction in schools and is widely used in government, business, and signage, especially in Thimphu and Paro.

Is Bhutan safe?

Very. Crime is low and Bhutan is considered one of the safest countries in Asia. The main risks are environmental — altitude, mountain roads, and weather.

How do people pay for things?

Mostly cash and domestic QR payments via apps like mBoB. Indian Rupees are accepted alongside Ngultrum; foreign cards work only at some hotels.

Why can't I buy alcohol on Tuesday?

Tuesday is a national dry day when alcohol sales and bars are closed across the country.

Is it expensive to live there?

Local food, transport, and services are affordable, and electricity is cheap, but imported goods are costly since most are transported overland from India.

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