Guide: Buying Property in Bahrain

Recent changes in Bahrain Real Estate laws now permit residents to invest and purchase properties for sale in Bahrain. For those who are looking for an attractive investment opportunity, here’s what you need to know.

  1. As a foreigner, can I buy property in Bahrain?
    Yes, you can. However, you can only purchase freehold properties. Before you take any steps in that direction, consult with your real estate lawyer or office about the areas where foreign property ownership is allowed.
  2. Where can I buy?
    Whether or not you are a resident of Bahrain, foreigners can invest in properties in the following areas: Ahmed Al-Fateh, Hoora, Bu Ghazal, Seef, Northern Manama, Durrat Al-Bahrain, Amwaj Islands, and Dannat Hawar.
  3. Tell Me about taxes:
    While Bahrain is a tax free country, foreign property owners must pay 10% municipal tax on properties.
  4. What about residency?
    As an owner of a freehold property, you are entitled to a 5 year self-sponsorship, which can be renewed. You are also entitled to a Residence Permit that allows you to sponsor your spouse and children (those who are under 18 years of age).
  5. And then?
    Once you have decided on a property and agreed with the owner regarding the price, you will then sign a reservation agreement, which means that the seller cannot sell the property to anyone else. You will then sign the sales agreement, and most probably provide a down payment. This agreement will detail the payment structure and schedule. Once full payment has been made on the property, you will receive the title deed. Keep in mind that the agreement must be notarized at the legislation court and the property needs to be registered with the Bahrain Survey and Land Registration Bureau. Registration fees vary from 1.5% – 3% depending on property type and price.

Please ensure that you consult with an attorney or real estate office before signing any legal documents or taking any steps in buying property in Bahrain.

For a complete list of available properties for sale in Bahrain, click here