Property taxes in Bahrain
Property taxes in Bahrain
A guide to taxation for foreigners and expats buying and leasing real estate in Bahrain, in areas such as Juffair, Amwaj Islands, Durrat Al Bahrain, Reef Island, Seef, Saar, Riffa, Diyar Al Muharraq and Bahrain Bay.
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This article is intended as a preliminary guide only and refers to some but not all elements required to consider in detail prior to starting any property dealings or due diligence. Property dealings are often complex, especially in foreign countries and we highly recommend you seek independent professional advice... read more...
Due to the small size of Bahrain and the taxes the government receives from the large gas and oil industries, the Bahrain Government does not charge income tax on its workers. But there is a small ‘social insurance tax’ applicable which amounts to 1% of the total salary earned. This tax was imposed to help fund the unemployed.
If you are planning to work in Bahrain and send the money to another country, taxes from that country may be applicable, so this should be taken into consideration when deciding how much to transfer and how best to do so.
Bahrain also does not charge tax for the following:
- Income from property rental
- Capital gains from sale of property or assets
- Inheritance tax
In Bahrain, tax returns do not have to be submitted.
For renters of fully-furnished properties in Bahrain, a Municipality Tax must be paid each year which is 10% of the total rent for the year.
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See also:
How to buy a property in Bahrain
Villa at Saar in Bahrain designed by MORIQ
Where foreigners can buy and rent property in Bahrain
This article and the above linked artciles are not complete and are intended as preliminary guides only. These guides refer to some elements to consider prior to starting any property dealings or due diligence. Property dealings are often complex areas, especially in foreign countries and we highly recommend you seek independent professional advice... read more...
