Bahrain: Guide to Buying Costs and Procedures

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Transaction costs are very low in Bahrain

How high are realtors’ and lawyers’ fees in Bahrain? What about other property purchase costs?

How difficult is the property purchase process in Bahrain?

Recent legislation in Bahrain now allows genuine real estate ownership by foreigners. Legislative Decree No 40 of 1999 allows ownership of Bahraini land by Gulf Country Council national (Saudi Arabia, Oman, Kuwait, UAE and Qatar). Legislative Decree No 2 of 2001 states that non-Bahrainis, whether natural or corporate persons, may own land in Bahrain. This law encompasses all non-Bahrainis, GCC national or otherwise. This was fully authorized in 2003.

Land is also available for lease from the Government.

There are, however, restrictions concerning foreign ownership in Bahrain. There are specified zones that the Government designated for foreign ownership. The following are residential and commercial zones:

• Ahmed Al-Fateh District
• Hoora District
• Bu Ghazal District
• Seef District
• District or Northern Manama, including Diplomatic Area

Foreign ownership of residential properties is also available in:

• Durrat Al-Bahrain
• Amwaj Islands
• Dannat Hawar

Non-GCC expatriates can secure a permanent resident permit allowing them to own real estate property, but the permit is terminated in the event of sale of the property.

Recently, however, there is a bill approved by the Chamber of Deputies banning foreign nationals from acquiring land of more than 5,000 square meters (sq. m) in Bahrain, to control rising property prices. The Shura Council is yet to approve the bill.

It is advisable to hire the services of a lawyer during the whole process of buying.

Footnotes to Transaction Costs Table

The round trip transaction costs include all costs of buying and then re-selling a property – lawyers’ fees, notaries’ fees, registration fees, taxes, agents’ fees, etc.

Currency:
The United Arab Emirates uses UAE Dirham (AED) . The exchange rate as of 09 Nov 2007: US$1 = AED 3.67270. Property value is US$250,000 approximately AED 918,000 (918,175).

Location:
Dubai

Title Deed:
Issuance of Title Deed by the Land Department costs AED250 (US$68).
For issuance of title deed through establishment of ownership of land for which no title deed was issued before, the cost is AED5,000 (US$1,361).

Registration Fees:
Sale Registration Fee, 1% each for buyer and seller, is paid to the Land Department of the Government of Dubai.

Real Estate Agent's Fee:
The broker fee ranges from 1% to 5% of purchase price, depending on the type of property and the overall purchase price.

Bahrain - more data and information

• How landlord-friendly is the law in Bahrain?

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