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A proposal to grant citizens a one‑time exemption from property registration fees for their first homes is returning to the Shura Council for reconsideration, following its rejection last year.
The council is set to vote during Sunday’s weekly session on whether to uphold its previous decision to block amendments to Article 59 of the Real Estate Registration Law, despite Parliament approving it.
The amendment, originally proposed by MPs, sought to exempt Bahrainis from paying certain fees when registering or transferring ownership of a property for the first time for residential purposes.
However, the Shura Council’s public utilities and environment affairs committee has recommended voting against the bill, citing financial, legal and practical concerns.
Committee chairman Dr Mohammed Ali Hassan said that while the objective of supporting citizens – particularly low-income earners – was appreciated, the goals of the proposal were already being met under existing legislation.
“The current law already provides targeted exemptions for those most in need, particularly citizens who obtain housing loans from the Housing Bank to purchase residential units or plots,” he said. Additionally, he indicated that fees in specific cases such as gifts between spouses and relatives up to the fourth degree were almost negligible.
“The intended social protection is therefore already embedded in the law,” he added.
Under the proposed amendment, citizens would be exempted from fees stipulated in Article 50 of the law – including sale and transfer registration fees – once, provided the property is for housing purposes.
The government, in its memorandum attached to the draft law, raised strong objections. It warned that the amendment would directly reduce state revenues at a time when Bahrain is working to strengthen non-oil income streams and maintain fiscal balance.
Dr Hassan echoed those concerns. He added that reducing such fees could negatively impact non-oil revenues, potentially affecting the government’s ability to sustain and enhance public services.
“At a time when both the legislative and executive authorities are working towards financial sustainability and improved public services, it would not be prudent to adopt measures that reduce revenues without clear alternatives,” Dr Hassan said.
The Survey and Land Registration Bureau also backed the government’s reservations, warning that the proposed amendment could significantly affect public treasury revenues and potentially open the door to circumvention through nominal sales or gift contracts designed to exploit the one-time exemption.
The committee further noted that the current system has not generated practical difficulties since the law’s enactment.
Registration fees for sale contracts stand at two per cent of the property’s value, with a 15pc discount if registration is completed within 60 days – an incentive aimed at encouraging timely registration.
Following renewed deliberations, the committee decided to maintain its earlier recommendation issued in April 2025 rejecting the draft law in principle.
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