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Real Estate & Construction

Expert tax advisory for property developers, real estate investors, and construction companies in Bahrain.

Sector Overview

Real Estate Taxation in Bahrain

Bahrain's real estate sector has unique VAT rules. Residential property is generally exempt from VAT, while commercial property is subject to the standard 10% rate. Construction services, bare land, and first supply of new commercial buildings each have specific treatment that requires expert analysis.

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Residential

Exempt

Residential property sales & rentals

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Commercial

10% VAT

Commercial property & office space

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Construction

10% VAT

Building and contracting services

How We Help

Real Estate Tax Services

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Property Transaction Advisory

VAT analysis for property purchases, sales, and leases including classification of residential vs. commercial and first vs. subsequent supply.

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Construction Contract Structuring

Optimize VAT treatment across complex construction contracts, subcontractor arrangements, and development agreements.

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Investment Structure Design

Tax-efficient structuring for property investment vehicles, JVs, and real estate funds across GCC jurisdictions.

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Input Tax Recovery

Maximize input tax recovery on development costs while navigating the mixed-use property partial exemption rules.

Planning a Property Transaction?

Get expert advice on the tax implications before you commit.

Speak With Our Real Estate Team →