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Buy a Property in Bahrain

Buy a Property in Bahrain

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 and villas 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.

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.

A freehold property 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 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 to upon the completion of the transaction;
  • register the property with the Bahrain 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.

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.

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 Bahrain 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.