A proposal to grant Bahrainis a one-time exemption from property registration and transfer fees for their first homes has been shelved after being rejected for the second time by the Shura Council.
The legislation, which sought to amend Article 59 of the Real Estate Registration Law (No 13 of 2013), had been approved by MPs and returned to the Shura Council for reconsideration.
However, during yesterday’s weekly session, members voted to uphold their earlier decision to block the draft law.
The amendment aimed to exempt citizens from paying registration and ownership transfer fees once, provided the property was intended for residential use.
Committee rapporteur Ali Al Shehabi stressed that the social objective of the proposal was already met under existing provisions.
“The exemption intended by the draft law – namely relieving citizens of registration and transfer fees for housing purposes – is already achieved through the current legal framework,” Mr Al Shehabi told members.
He explained that Article 59 of the existing law grants exemptions to citizens purchasing residential units or plots through loans from the Housing Bank, primarily benefiting low-income earners – the category constitutionally guaranteed the right to housing.
“The law takes into account those most deserving of protection,” he said.
“Citizens who buy homes through the Eskan Bank loans are already exempt from registration fees.”
He added that other cases are subject to only nominal charges, such as BD5 for registering gifts between spouses and relatives up to the fourth degree, as well as gifts not exceeding BD50,000 in value.
Mr Al Shehabi also referred to Constitutional Court principles defining fees as mandatory payments collected by the State in exchange for a specific public service.
“Whoever obtains the service of property registration must, in principle, pay for that service,” he said.
“Exemptions should remain limited and exceptional.”
Committee chairman Dr Mohammed Ali Hassan echoed those concerns, warning of financial repercussions at a time when Bahrain is working to strengthen non-oil revenues and maintain fiscal stability.
“While we appreciate the intent to support citizens, particularly low-income earners, the current legislation already provides targeted relief,” Dr Hassan said.
He pointed out that reducing or waiving registration fees would directly affect non-oil income streams.
“At a time when both the legislative and executive authorities are focused on achieving financial sustainability and enhancing public services, it would not be prudent to adopt measures that reduce revenues without clear alternatives,” he said.
The Survey and Land Registration Bureau had also cautioned that the proposed amendment could significantly impact public treasury revenues and potentially lead to circumvention through nominal sales or gift contracts designed to benefit from the one-time exemption.
Currently, registration fees for sale contracts are set at two per cent of the property’s value, with a 15 per cent discount granted if registration is completed within 60 days – a measure aimed at encouraging prompt compliance.
The committee further noted that since its enactment, the existing law has not generated practical difficulties and already incorporates principles of social justice in fee collection.
With the Shura Council reaffirming its stance, the draft law has now been shelved after failing to secure approval for a second time.
&uuid=(email))