I have a villa that I want to rent out and wanted to know if I rent to a Bahraini tenant do I have to pay the 10% municipality tax or is this only payable if renting to an expat? Any help would be appreciated.
Municipality Tax
Kiwi42
02 December 2013 11:31:34
7
Josnuggles
02 December 2013 12:08:50
2197
It is your choice. If you rent exclusive then the tenant pays
Kiwi42
02 December 2013 12:48:39
7
Thanks for reply. What I want to clarify is whether the 10% tax applies when the tenant is a Bahraini. Rom what I can find the 10% municipality tax only applies to property rented to expats, but it is not very clear. Thanks
brightonguy
02 December 2013 12:57:46
1591
It's usually stated in the contract. Although not always the case, if the property is fully furnished, then the owner pays for the tax. If it is not furnished, then the tenant pays for the tax. However I don't think this rule is set in stone. The best bet would be checking with your future landlord/landlady and try to negotiate if you are going to pay for it.
Josnuggles
02 December 2013 13:01:02
2197
Sorry Brightonguy, he is the landord. I think everyone has to pay the tax but put the rent up and make it inclusive. Also on the contract reduce the rent amount and add services to bring down the tax payment
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