One of the most common questions about buying a property in Bahrain is if this option is available for foreigners. The short answer is yes, foreigners can buy flats, villas etc. in Bahrain. However, there are also a few conditions to respect when it comes to overseas people interested in acquiring various types of properties. Below, our lawyers in Bahrain explain the conditions under which foreign citizens and investors can buy properties here.
| Quick Facts | |
|---|---|
| Specific legislation applicable (YES/NO) |
– Civil Code, – Property and Land ownership by non-Bahraini Decree, – Real Estate Registration Act |
|
Possibility to acquire Bahraini properties by foreigners (YES/NO) |
Yes, under certain conditions, such as self-sponsorship for foreigners. |
|
Types of properties that can be purchased in Bahrain |
– houses, – apartments, – commercial facilities |
| Real estate due diligence required (YES/NO) | No, however, it is best to complete such verifications before making a purchase. |
| Documents to draft for property acquisition |
– copies of ID and passport, – clean criminal record, – Bahraini valid health insurance, certificate indicating the value of the property, – proof of income |
| Financing options availability (YES/NO) |
Yes, including for foreigners. |
| Special property acquisition programs for foreign citizens (YES/NO) |
Yes, the golden visa, however, self-sponsorship can also be used to acquire a property in Bahrain. |
| Time frame to acquire a property (approx.) |
About 3 to 4 weeks |
| Taxes to consider upon a property purchase |
– stamp duty (2% of the property value), – registration fee (1.7% to 2% of the property value), – legal fee split between the buyer and seller |
| Land Registry registration requirement (YES/NO) | Yes, registration is mandatory after the purchase. |
| Best cities to buy properties in Bahrain |
Manama, Seef, Juffair, Amwaj Islands. Please note that foreigners can acquire properties in specific areas only, including the ones mentioned here. |
| Residency requirements for foreign citizens buying real estate |
Yes, foreigners must become residents to buy properties in Bahrain. |
| Possibility to appoint a local representative during the transaction (YES/NO) |
Yes, you can also use our dedicated services in this sense. |
| Property tax rates in Bahrain |
Municipal tax (10% of the contract value for expats) |
| Support in buying a property in Bahrain (YES/NO) | Yes, we can assist with the purchase of a property in Bahrain. |
Table of Contents
Where can foreigners find flats or villas for sale in Bahrain?
Foreigners can find flats and villas for sale in several cities of Bahrain, however, they must be freehold types of properties. This means it is one in which the building and the land it is built on is owned by an organization. A freehold is typically purchased through an auction or lottery. So, if you are looking for a flat for sale in Bahrain as a foreigner, you should consider this option.
With respect to the prospects of buying land in Bahrain, this is possible under the same freehold conditions.
Should you decide to acquire a property in this country, you can also use various programs, mainly those related to immigration to Bahrain. Their advantage is that you can also apply for Bahraini residency through self-sponsorship.
Steps to buy a property in Bahrain
If you are looking for villas for sale in Bahrain with the intention of buying one as soon as possible, here are the steps to complete:
- ask for the help of our real estate lawyers in Bahrain for law-related purposes;
- complete the due diligence procedure in relation to the villa or flat you want to buy;
- draft the necessary documents for the sale;
- set up a bank account in Bahrain to deposit the money that will be transferred upon the completion of the transaction;
- register the property with the Bahraini Land Register.
Similar steps must be completed if you intend to buy land in Bahrain. In most cases, this option is used by investors who want to incorporate companies in Bahrain, as they can build the desired facilities. We also have a team of Bahraini company formation agents who can help you register a business here.
Documents to draft for real estate purchases in Bahrain
When buying a property in Bahrain, the following documents are required:
- a copy of the buyer’s passport or other identification paper, such as Bahraini residence permit;
- proof of address;
- pre-sale agreement between the buyer and seller outlining the parameters of the transaction;
- a copy of the ownership document;
- a copy of the property registration title;
- a copy of the property value report;
- a copy of the property tax assessment;
- a copy of the property insurance certificate;
- a copy of the buyer’s bank statements;
- a copy of the buyer’s credit report.
You can rely on our local specialists if you want to buy a Bahraini flat or villa and need assistance in gathering the necessary documents.
Here is our infographic on this topic:
Where can foreigners buy flats and villas in Bahrain?
When it comes to the freehold areas with flats and villas for sale in Bahrain, we mention the following:
- Ahmed Al-Fateh;
- Hoora;
- Bu Ghazal;
- Seef;
- Northern Manama;
- Durrat Al-Bahrain;
- Amwaj Islands;
- Dannat Hawar.
Specific aspects when buying real estate as a foreigner in Bahrain
Foreign citizens and investors who want to purchase properties in Bahrain must go through specific procedures. However, compared to other countries, there are also several advantages to becoming a homeowner here. For example, overseas nationals do not need to apply for residence permits for Bahrain to be allowed to complete the acquisition, nor do they have to live in the country after the purchase.
Those who have unwavering plans for immigration to Bahrain can apply for ordinary residence visas or premium residency, case in which they must obtain a No Objection Certificate from the Ministry of Interior. They must also carry out the necessary due diligence to select freehold properties.
On a general note, there are no special acquisition conditions to apply based on the country of origin of a buyer. However, due to the larger number of documents required, the process may take longer.
Our lawyers in Bahrain are at the service of foreigners interested in buying various types of properties here.
Self-sponsorship when buying a property in Bahrain
Self-sponsorship is one of the main ways through which foreign citizens can acquire properties in Bahrain. This is possible through the residency by investment program and is available for:
- investors;
- retirees.
Investors can be further divided into those who buy real estate or open companies in Bahrain to obtain residency. The main advantage of choosing this pathway is that the residence permit can be renewed every 2 or 5 years (evaluation is made on a case-by-case basis).
This type of residence permit, however, enables buyers to acquire Bahraini freehold properties only.
How to buy a property in an off-plan development sale
It is also possible for local and foreign citizens to acquire properties that are in the development stage. However, in this case, the Real Estate Regulatory Authority provides special measures meant to protect the buyer. Specifically:
- the buyer has a 7-day consideration period to decide whether he/she wants to purchase the respective property;
- the developer must provide the prospective buyer with detailed information about the construction and unit to be sold;
- if the buyer decides to acquire the property, a reservation contract is made and a deposit of 1% of the total price will be made to secure the unit;
- the buyer can also enter a direct sale-purchase agreement, a case in which at least 10% of the price must be deposited.
Our lawyers in Bahrain can guide foreign buyers seeking to acquire apartments or villas in off-plan development sites.
Here is also a video on this subject:
Fees to pay when buying land or properties in Bahrain
Here are the main taxes and fees to consider when you buy a property in Bahrain:
- the stamp duty levied at a rate of 2% of the property value;
- the municipal tax which is 10% of the contract value for foreign buyers;
- the registration fee with the Bahraini Land Register which is 1.7% or 2% of the property value when it is registered within 60 days, respectively later than 60 days from the transaction.
Contact us if you want to buy real estate in Bahrain and need support.