Legal issues
Taxes and inheritance
The Kingdom of Bahrain levies no inheritance tax. This, however, does not mean that inheritance itself is easily sorted out in Bahrain.
Typically, the inheritance laws of your home country apply when determining how the property is divided after your death. In some cases, though, your home country may defer to the Kingdom's inheritance laws regarding the division of your Bahraini property.
If this is so, Islamic law (shariah) will determine what happens to your property. Islamic inheritance is complicated and involves the division of property among close relatives such as a spouse and children. Inheritance law gives preference to sons, and your daughter might not receive an equal share of your property.
When you purchase property in Bahrain, you should speak with a lawyer about Bahrain's inheritance law and how it could affect your property. If the Islamic law applies to you, ask a lawyer to amend your will accordingly. Usually the government honours these contracts, and this ensures that there is no confusion concerning your property in the case of your death.
Taxes
There are no property, capital gains, or property purchase taxes in Bahrain.
Also in this section
- Introduction: The Bahrain property market
- The search: How to find a property in Bahrain
- Purchase process: How to buy property in Bahrain
- Mortgages: Paying for your Bahrain property
- Legal issues: Taxes and inheritance
- Additional costs: Utilities in Bahrain