Foreigners have a very relaxed system in Bahrain, they are encouraged to come to the country and invest in businesses. They can also invest in properties too. That’s why there are lots of flats for rent in Zinj Bahrain and all over the region. The costs of living are low, and creating a new startup is extremely easy and convenient. With that being said, is it possible for a foreigner to buy a property in Bahrain and if so, how can you do it? Let’s find out.
Can foreigners buy properties in Bahrain?
Yes, you can do that. There is a limit, since you can only buy freehold properties. You do want to make sure that you work closely with a real estate expert or lawyer to ensure that you are allowed to buy here. You can invest in or buy properties in Dannat Hawar,Amwaj Islands, Manama, Seef and a multitude of other locations.
Do you need to pay taxes for the property?
A lot of people find this confusing but yes, Bahrain requires foreigners to pay taxes. Even if Bahrain is a tax-free country to begin with, people from other countries still have to pay a 10% municipal tax on the properties they own. It’s not a lot when compared to other countries, but it’s still quite a bit.
Then there’s also the residency aspect. If you are a freehold property owner, then you have a 5-year self-sponsorship that you can renew in any way you want. There’s also the option for you to obtain a residence permit that helps you sponsor your kids and spouse as well. Once you have all that legal aspect sorted out, you can find some great apartments for rent in Bahrain Juffair or neighboring regions.
Understanding more about the property purchases
After you agree with the owner when it comes to the property price, you will need to sign a reservation agreement. What this does is it locks the property to you and the seller can’t sell it to any other person. After that happens, you sign the sales agreement and provide the downpayment. The payment schedule and structure will differ based on a multitude of factors.
You need to deposit the full payment, and once that happens you will get the title deed. This agreement needs to be fully notarized by the Legislation Court. You also need to register the property with the Bahrain Survey and Land Registration Bureau. Here you have to pay a registration fee that will be anywhere from 1.5% to 3% of the property price.
Conclusion
It’s very important to know how the system works when you are buying properties for foreigners in Bahrain. Understanding the purchase process and making sure you stick to it matters quite a bit. Once you know how the system works, it’s easy to buy a property here. Thankfully, the legal system is not that restrictive, which means you are getting a very good set of results, and nothing will be able to stand in your way!
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