Bahrain Tax Agency Posts Updated VAT Real Estate Guide in English

The Bahraini National Bureau for Revenue Jan. 29 posted, in English, updated guidance for VAT on real estate. The updated guidance includes: 1) examples of the main types of lease incentives used by landlords to encourage tenants to enter into or renew leases; 2) clarification that rent reductions and rent-free periods provided as lease incentives follow the same treatment as the principal supply, and are therefore exempt from VAT; and 3) clarification that lease incentives in the form of reimbursements for fit-out contributions are subject to VAT. [Bahrain, National Bureau for Revenue, 01/29/26]

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