Bahrain Property Law · Fees & Taxes

What is the 10% municipality fee on rentals in Bahrain?

A 10% fee on the rental value that applies when property is rented to expatriate tenants. It is a municipal charge on the tenancy - not an income tax - and well-drafted leases state explicitly which party bears it.

In practice the fee is commonly collected through the tenant's utility account alongside electricity and water, which is why many expat renters know it simply as a line on the EWA bill.

For landlords doing yield arithmetic and tenants doing budget arithmetic, the rule of thumb is the same: add 10% of the rent to the tenancy's running cost and agree in the contract whose cost it is.

• 10% of rental value on lettings to expatriate tenants
• Municipal fee, not an income tax
• Commonly collected via the utility account
• State who bears it in the lease

Source: SLRB transfer-fee rules; Bahrain VAT Law and NBR VAT Real Estate Guide; government-published municipal fee rules. This page is general information, not legal advice - for a live dispute, use a licensed lawyer.