Buying Property in Bahrain


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Know your facts

If you’re looking to buy a property in Bahrain, you’ll discover the procedures do not differ widely from those elsewhere in the world. The legal property ownership rights in Bahrain are sophisticated and well developed, meaning as purchaser, you are protected once permission to purchase has been granted and deeds of ownership are transferred into your name.

The fees for transferring the title deeds from the owner’s name into your name is 2 % from the total purchase price (applicable for both new and resale properties). However, a special discount rate is offered if the fees are paid within 60 days of the registration date, the fee will only be 1.7%. If you are an overseas’ investor, you are advised to seek independent legal assistance throughout the entire purchase process.

 

  1. As an expatriate can I buy property in Bahrain? 

You can purchase property in approved freehold areas of Bahrain.

Under the Kingdom of Bahrain, Legislative Degree 2 for the Year 2001 and Edict No. 43 of 2003 (as amended by Edict No. 67 of 2006) by His Majesty King Hamad Bin Isa Al Khalifa allowing freehold properties for expatriates, resident expatriates and GCC nationals pursuant to Ministerial Edict No. 67 of 2006. This permits the ownership by expatriates of residential units of freehold types only.

  1. Where can I buy?

You are allowed to buy a freehold property in particular areas of Bahrain.  In general, the properties built on reclaimed land are available for purchase by expatriates; such areas include but not limited to: Juffair, Seef, Amwaj Islands, Reef Island, Durrat Marina, Durrat Al Bahrain.  There are also few other developments in Bahrain which offer residential freehold unit, for example, all-villa development Riffa Views; Al Areen residential development and others.

Decree No. 2 of 2001 provides that non-Bahrainis (both individuals and companies) may own built properties and land in the Kingdom of Bahrain in any manner prescribed by earlier legislation and subject to conditions prescribed from time to time. The land that is available for foreign ownership is limited by the Kingdom to certain areas and is dependent on the intended use of the land by the proposed buyer.

  1. What about self sponsorship?

Self Sponsorship Residence Permit is issued to expatriate retirees, expatriate property owners and expatriate investors.  As the owner of a freehold property you are entitled to a self sponsorship residence permit for life; this is renewable every 2 to 5 years (depending on case by case basis).

You are entitled to a Residence Permit (see legal reference below). This Residence Permit allows you to sponsor a residence permit for your spouse and children under 18, providing that your spouse does not engage in any kind of paid employment. The Residence Permit allows both you and your spouse the privilege of entering and leaving the country without have to procure a return visa.

Residence Permit – Freehold property

Ministerial Order No (74) for 2007 deals with granting residence permits by a personal sponsorship to expatriates (non-Bahrainis) who purchase freehold property.  The Order was published in the Official Gazette on 17/01/2008 and came into effect on 18/01/2008.

Article (2) (a) of the Order provides that an expatriate may be issued with entry and residence permit under personal sponsorship, if he/she owns a residential property in his/her name in the Kingdom of Bahrain of a total value of no less than BHD 50,000.  There is no objection to mortgaging the residence in favour of one of the banks or financial institutions licensed to undertake business in the Kingdom of Bahrain. For the purposes of this Order, residence shall mean any apartment or house fit for residence.

The following documents are required according to the situation:

  1. 1. Retired Expatriate:
  • Service request form.
  • A clear copy of the passport.
  • A clear copy of the ID.
  • Certificate of good conduct & behavior.
  • Copy of the tenancy agreement.
  • Retirement Certificate issued by employer weather in the kingdom or in only the GCC countries. And the period of work should not be less than 15 years.
  • A valid certificate of health insurance
  • The applicant must have a source of income sufficient enough to support himself and his dependents.
  • A copy of the applicant’s ID or his legal representative.
  1. Expatriate who owns a property in Bahrain:
  • Service request form.
  • A clear copy of passport.
  • A clear copy of ID.
  • Certificate of good conduct deed.
  • A certified copy of the property stating that value of the property owned by the expat (in his name).   The property value should not be less than 50.000 BD.
  • A valid certificate of health insurance issued from the Kingdom of Bahrain
  • The applicant must have a source of income sufficient enough to support himself and his dependents not to be less than five hundred Bahraini Dinars (500 BD) per month.
  • A copy of the applicant’s card or his legal representative
  • The owned residence property must be located in a touristic zone. For example, Al Juffair, Amwaj, Riffa Views, Busaiteen, Abraj Allulu, AlAreen, etc…
  1. Expatriate Investor:
  • Service request form.
  • A clear copy of passport.
  • A clear copy of ID.
  • Certificate of good conduct & behavior.
  • A copy of the tenancy agreement.
  • A certified copy of the company’s memorandum of association and his share must not be not less than one hundred thousand Bahraini Dinars 100.000 BD
  • A valid certificate of health insurance issued from the Kingdom of Bahrain
  • The applicant must have a source of income sufficient enough to support himself and his dependents not less than five hundred Bahraini Dinars (500 BD) per month.
  • A copy of the applicant’s card or his legal representative.

The issuance of entry and residence permits under personal sponsorship shall also be subject to the condition that the applicant is not employed in the government or the private sector in the Kingdom of Bahrain.

The visa application form and a more detailed procedure are available from the portal of Ministry of Interior of the Kingdom of Bahrain:

https://www.npra.gov.bh/en/services/visa-and-residence-permit/residence-permit/self-sponsorship/

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