1. Foreign Property Ownership
Bahrain allows foreigners to own freehold property in designated areas, making it an attractive regional investment destination.
🏠 Freehold Areas for Foreigners
- • Amwaj Islands
- • Durrat Al Bahrain
- • Reef Island
- • Bahrain Financial Harbour
- • Seef District
- • Juffair
- • Diyar Al Muharraq
- • Other designated areas
| Ownership Type | Bahrainis | GCC Citizens | Foreigners |
|---|---|---|---|
| Freehold | ✓ All areas | ✓ All areas | Designated areas only |
| Usufruct | ✓ | ✓ | ✓ Up to 99 years |
| Long-term Lease | ✓ | ✓ | ✓ |
2. Buying Property
Legal Due Diligence
Verify title deed, check for encumbrances or liens, confirm area measurements, review permits
Preliminary Agreement & Deposit
Sign preliminary sale agreement and pay deposit (typically 10% of price)
Arrange Financing
Obtain bank financing approval (if needed) and property valuation
Final Sale Contract
Sign sale contract at notary public or licensed attorney
Registration & Title Transfer
Register property with Survey & Land Registration Bureau and obtain new title deed
📋 Required Documents
- ✓ Passport / ID copy
- ✓ Proof of address
- ✓ Source of funds evidence
- ✓ Financing approval (if applicable)
- ✓ Power of Attorney (if through lawyer)
- ✓ Commercial Registration (for companies)
3. Property Registration
The Survey & Land Registration Bureau (SLRB) is responsible for registering all property transactions in Bahrain.
| Fee Type | Rate | Who Pays |
|---|---|---|
| Registration Fee | 2% of property value | Split 50/50 (1% each) typically |
| Notarization Fee | Variable | Buyer typically |
| Mortgage Registration (if applicable) | 0.25% | Borrower |
Note: There is no annual property tax in Bahrain, nor capital gains tax on property sales.
4. Off-Plan Purchases
The Real Estate Development Law regulates off-plan sales with special buyer protections.
✅ Buyer Protections
- • Escrow Account: Buyer funds in separate account
- • Payment Schedule: Linked to construction milestones
- • Bank Guarantees: From developer
- • RERA Supervision: Of the project
- • Rescission Right: If delivery is delayed
⚠️ Due Diligence Checklist
- • Developer's RERA license
- • Project registration
- • Escrow account existence
- • Bank guarantees
- • Delivery schedule and delay penalties
- • Specifications and finishes
5. Construction Contracts
We provide comprehensive legal services for construction and development projects:
📝 Contract Types
- • Main contractor agreements
- • Subcontractor agreements
- • Design & supervision contracts
- • Supply contracts
- • FIDIC contracts
- • EPC (Turnkey) contracts
⚖️ Our Services
- • Contract drafting and review
- • Contractor negotiations
- • Claims management
- • Construction dispute resolution
- • Engineering arbitration
- • Permit consulting
6. Property Financing
Various financing options are available from conventional and Islamic banks:
| Feature | Conventional | Islamic |
|---|---|---|
| Structure | Interest-based loan + mortgage | Murabaha or Ijara Muntahia Bittamleek |
| LTV Ratio | Up to 80% for citizens | Up to 80% for citizens |
| Term | Up to 25 years | Up to 25 years |
| For Foreigners | Up to 70% typically | Up to 70% typically |
See: Banking & Finance Guide for more on Islamic and conventional financing.
7. Real Estate Disputes
Common disputes include: sale/purchase disagreements, construction defects, delivery delays, lease disputes, and common property issues.
🏛️ Dispute Resolution Forums
- • RERA: Developer-buyer disputes
- • Civil Courts: Property ownership disputes
- • Arbitration: If contractually agreed
- • Rent Committee: Lease disputes
⚖️ Our Dispute Services
- • RERA and court representation
- • Construction and contract disputes
- • Deposit recovery and compensation
- • Property evictions
- • Common property disputes
💡 Our Comprehensive Real Estate Services
- ✓ Property legal due diligence
- ✓ Sale contract drafting and review
- ✓ Construction and contractor contracts
- ✓ Property registration and transfer
- ✓ Development advisory
- ✓ Real estate litigation and arbitration
8. Frequently Asked Questions
Can foreigners own property?
Yes, in designated areas: Amwaj Islands, Durrat Al Bahrain, Reef Island, Bahrain Financial Harbour, Seef, Juffair.
What are the registration fees?
2% of property value, typically split between buyer and seller (1% each).
What protections exist for off-plan buyers?
Mandatory escrow account, bank guarantees, milestone-linked payments, rescission rights for delays, and RERA supervision.
Are there property taxes?
No. Bahrain has no annual property tax and no capital gains tax on property sales.
Need Real Estate Legal Advice?
We provide comprehensive legal services for all property matters