Costs of buying a home in Bahrain
Updated
Example (our example price and down payment, not rules): buying a BHD 100,000 home in Bahrain with 20% of your own money and a home loan needs about BHD 22,826.000 in cash on the day — BHD 20,000 of your own money plus BHD 2,826.000 in fees (2.83% of the price): the 1.7% registration fee (BHD 1,700.000) if the application is filed within 60 days of notarizing the contract and you pay it, the BHD 1 form, BHD 20 for the notary, BHD 5 to register the mortgage, and your 1% half of the broker's 2% (BHD 1,000.000 plus 10% VAT, BHD 100.000). Filed later, the fee is 2% and the same purchase costs BHD 23,126.000 — BHD 300.000 more. Paying all cash, it costs BHD 102,821.000. The home itself carries no VAT.
Monthly instalment for this loan →
Not a valid document. Estimate for information only — not financial advice, not an offer of credit and not a bank document. Errors are possible. Only your bank's or finance company's official offer letter, contract and statements are binding.
The costs on the day
- Registration fee: 2% of the property value, or 1.7% if filed within 60 days of notarization. The Survey and Land Registration Bureau charges it to register the sale (Law 13/2013 takes 15% off the fee for an application filed in time). On a BHD 100,000 home the difference is BHD 300. If you cannot file in time, an online request to extend the reduced-fee period must be filed within 120 days of notarization; the Bureau decides on it. The law does not say whether the buyer or the seller pays — that is agreed in the sale contract.
- Fixed fees: BHD 1 for the registration application form, BHD 20 to notarize the sale contract at the Ministry of Justice, Islamic Affairs and Waqf, and BHD 5 to register a mortgage if you buy with a home loan (BHD 5 more to lift it once the loan is repaid).
- Broker: RERA sets the commission at 2% of the sale price, paid half by the buyer and half by the seller unless agreed otherwise in writing. Agents' services carry 10% VAT.
- Bank: CBB caps the processing fee on a home loan at BHD 200 for a loan up to BHD 150,000, BHD 300 up to BHD 250,000 and BHD 500 above; 10% VAT is added. Valuations, insurance and government fees may only be passed on as billed. CBB sets no minimum down payment — how much the bank lends is its own decision.
- VAT: Buying, selling or renting property in Bahrain is exempt from VAT — homes, commercial property and land alike. The calculator adds VAT only on the broker and the bank fee.
- The state housing bank: Buyers who borrow from the state housing bank to buy a housing unit or plot are exempt from the registration fee, within the loan amount.
What has no official number
A valuation, insurance and moving costs are priced by whoever provides them, so the calculator leaves that field empty and counts nothing until you enter your estimate.
After the purchase
A home loan secured on the home you live in is outside CBB's 50% consumer-finance limit; the home loan calculator shows the instalment, the APR with the fee and VAT (CBB's method), and what share of your income it takes.
Who may buy property in Bahrain
- Bahraini citizens may buy anywhere; citizens of the other GCC states are treated like Bahrainis (Decree-Law 40/1999).
- Other nationalities may own buildings and land only in the residential-building zones (A), (B) and (C) and in the listed investment and tourism areas and projects, as shown on the official maps (Prime Minister's Decisions 43/2003, 38/2023 and 27/2025). Holders of a platinum residency may also own elsewhere, outside excluded areas. The Survey and Land Registration Bureau's page "Other Nationalities Ownership" shows the areas — check the plot before you pay a deposit.
- Residency: owning property worth at least BHD 130,000 can qualify you for a Golden Residency (BHD 5 application fee, BHD 300 every 10 years, plus BHD 300 for each dependant's permit; threshold set by Ministry of Interior Decision 150/2025) — see who can buy property in Bahrain.
What carries VAT in Bahrain and what is exempt: VAT in Bahrain — with a calculator to add or remove 10% VAT.
Questions people ask
How much is the property registration fee in Bahrain?
Bahrain's Survey and Land Registration Bureau charges 2% of the property value, reduced to 1.7% if the registration application is filed within 60 days of notarizing the sale contract. An online request to extend the reduced-fee period can be filed within 120 days of notarization; the Bureau decides on it.
Who pays the registration fee, the buyer or the seller?
In Bahrain, the law sets the fee but does not say who pays it. That is agreed in the sale contract.
What other fees are there when buying a home in Bahrain?
In Bahrain, BHD 1 for the application form, BHD 20 to notarize the sale contract and BHD 5 to register a mortgage. The broker's commission is 2% of the price, half each unless agreed otherwise in writing, plus 10% VAT.
Is there VAT on buying a home in Bahrain?
No — in Bahrain, buying, selling or renting property is exempt from VAT — homes, commercial property and land alike. The 10% VAT applies to the broker's commission and the bank's fees.
How much down payment do I need for a home in Bahrain?
CBB sets no minimum down payment or loan-to-value limit for home loans. How much a bank lends is its own decision, so check your offer.
What can a bank charge to process a home loan?
In Bahrain, at most BHD 200 for a loan up to BHD 150,000, BHD 300 up to BHD 250,000 and BHD 500 above, plus 10% VAT.