Bahrain opens doors to Foreign Property Ownership: What to know before you invest

Bahrain has unveiled a broader property-ownership framework that allows more foreigners to buy and lease homes across selected freehold zones. The move, governed by multiple legal decrees and recent decisions, is part of a push by the Survey & Land Registration Bureau and the Economic Development Board to diversify investment and make the kingdom’s real estate sector more globally competitive.

These foreign property provisions trace back to 2001, when Bahrain passed Decree-Law No. 2, enabling non-citizens to own property in specific zones. Formalization came with Legislative Decree No. 43 of 2003, later amended in 2006 and 2023, to define freehold areas more clearly. In Decision No. 53 of 2024, Bahrain reduced capital requirements for foreign-owned businesses, and in April 2025 added Bilaj Al Jazayer to its freehold-zone map. Officials say the policy aligns with Bahrain’s Economic Vision 2030, which seeks to attract high-value residents, investors, and businesses. By easing access to freehold titles, the government hopes to stimulate long-term housing supply, boost construction activity, and create new lifestyle hubs.

Bahrain Property Market: New ownership rules for foreign investors
Under the latest guidelines, non-Bahrainis can now own or lease residential property in a wider set of locations, provided purchases meet zoning and registration requirements.
Key highlights:

• Freehold eligibility applies mainly to high-rise apartments and townhouses inside authorised investment areas.
  
• Villas or houses in certain waterfront projects can also qualify if developers secure prior approval.
  
• Foreign buyers may rent out units, but large-scale commercial use is restricted unless licensed as part of a real-estate business.

Authorities emphasise that buyers must complete registration with the Survey & Land Registration Bureau and pay applicable transfer fees (usually 1.7% of the property value).

Benefits of buying Property in Bahrain for expats and global investors
Bahrain’s new stance makes its market more appealing compared with other Gulf destinations:

• Residency pathways: Property purchases above a threshold may support residency permit applications for investors and their immediate families.
  
• Lower entry cost: Prices for apartments in Manama and Muharraq often start below those in Dubai or Doha, giving value-oriented investors a foothold in the region.
  
• Tax-friendly environment: Bahrain has no personal income tax or capital gains tax on property sales, though municipal and registration fees apply.

Key areas in Bahrain open to Foreign Real Estate Investment
The main freehold zones include:

• Amwaj Islands – master-planned waterfront living with marinas and cafes.
  
• Juffair & Seef District – urban apartments close to offices, restaurants, and malls.
  
• Diyar Al Muharraq – a fast-growing community with schools, retail, and family villas.
  
• Bahrain Bay – upscale towers and serviced residences overlooking Manama’s skyline.
  

Developers are also marketing units in smaller boutique projects across the Diplomatic Area, Reef Island, and selected coastal sites.

Legal requirements and costs for foreign property buyers in Bahrain
To purchase or lease in an authorised zone, investors generally need:

• A valid passport and proof of funds.
  
• Sale and purchase agreement with a registered developer or owner.
  
• Registration at the Survey & Land Registration Bureau, with transfer fees (about 1.7%) and documentation charges payable.
  
• For some high-value transactions, a background check or “no objection” certificate from relevant authorities.
  

Mortgages are available from Bahraini banks to qualified expatriates, though down-payment levels and interest rates vary.

Guide to properties in Bahrain: Where to start your search
For readers considering a home or investment, here’s a quick guide:

• Apartments for professionals: Look at Seef, Juffair, or Bahrain Bay for serviced units near business districts.
  
• Waterfront living: Amwaj Islands and Reef Island offer marina views and beach clubs.
  
• Family villas: Explore Diyar Al Muharraq or Saar for gated communities with schools and parks.
  
• Off-plan projects: Check developers licensed by the Real Estate Regulatory Authority (RERA) for new builds with staged payments.

When comparing listings, factor in service charges, parking availability, and proximity to amenities.

Why Bahrain’s Real Estate reforms could boost long-term ROI
Analysts believe the relaxed ownership rules will draw not just expatriate residents but also regional funds seeking stable rental yields. Combined with Bahrain’s strategic location, strong transport links to Saudi Arabia, and a maturing tourism sector, the policy could position Manama as a boutique alternative to larger Gulf markets.