How overseas buyers buy property in Bahrain

What to know first

• No personal income tax and no capital gains tax for individuals
• The Bahraini dinar has been pegged to the US dollar for decades — one of the most stable currencies on this platform
• Golden Residency for property owners, with the threshold reportedly cut to BHD 130,000 from late 2025 (NPRA page still shows BHD 200,000 — confirm)
• Marassi Al Bahrain is an established, largely delivered beachfront community on Diyar Al Muharraq, 10–20 minutes from the airport and central Manama
• Most listings here are completed and ready to move, which is unusual on this platform — buyers can inspect the actual building

The general process

1. Confirm what foreigners may own in Bahrain and in which areas.
2. Set your budget in BHD, including taxes, fees and currency costs.
3. Shortlist areas and check the developer or seller.
4. Appoint an independent local lawyer before paying anything substantial.
5. Reserve, sign the contract, and pay through the approved channel.
6. Complete registration, and take tax advice in both countries on any rent or sale.

The exact steps and order differ by country and by project.

Financing for foreign buyers

Notes

Several Marassi Al Bahrain buildings are sold ready to move on a developer plan (25% at signing, 25% within a month, 50% over 2 years after handover, a limited-time offer at the time of writing) — confirm current terms and bank-finance options with a PropSentral advisor.

Residency through property

Programme

Golden Residency (renewable 10-year residence permit) for owners of property in Bahrain

Threshold

BHD 130,000 (about USD 345,000) of property, reported from late 2025 after a 35% cut from BHD 200,000 — the NPRA’s own page still showed BHD 200,000 when checked, so confirm the current figure with the NPRA before relying on it

Taxes and running costs

Income tax on rent

No personal income tax, so no tax on individual rental income in Bahrain; a 10% municipality tax is reported to apply to residential rents paid by expatriate tenants (secondary sources — confirm with a Bahrain-licensed advisor)

Capital gains tax

No capital gains tax for individuals

Transfer tax or fees

No transfer tax as such; the Survey and Land Registration Bureau (SLRB) charges a registration fee, reported as 1.7% of the value if registered within 60 days of the notarised contract and 2% after that (secondary sources — the SLRB fee calculator is the authority)

Annual property costs

No annual property tax on owner-held homes; service charges apply per community. VAT (10%) is not charged on the sale of ordinary residential property, per secondary sources