Retiring in Bahrain: Right of Residence, Tax on a French Pension and Access to Care

A French national enters with a visa issued on arrival or an e-visa, valid for 90 consecutive days at most, extensions included: it suits a reconnaissance stay. The official sources consulted do not describe a visa specific to retirees.

• Golden Residency: the national portal describes this programme as a route that lets current residents and foreigners reside or invest over long periods, intended for investors, skilled profiles and innovators. The Nationality, Passports and Residence Affairs authority (NPRA) runs it; the criteria and documents are read on the programme’s official website, which we were unable to consult.
• Permit tied to an employer or sponsor: the health insurance law distinguishes the employee and their employer, the sponsored person and their sponsor, the licensed worker with no employer and the non-working resident.
• Non-working resident: the health insurance law recognises this status, that of a resident without employment, who insures themselves and their family and must provide proof of cover to obtain or renew their residence permit.

The quantified resource conditions of these routes are requested from the competent authority before departure. The guide to living in Bahrain describes the settling-in formalities.

A decision of the Prime Minister, published in the official gazette of 24 April 2025, amends the 2003 decision on the ownership of buildings and land by non-Bahrainis. The Real Estate Regulatory Authority (RERA) publishes the official map of the zones concerned, broken down by governorate: the projects include Diyar Al Muharraq, Amwaj Islands, Dilmunia, Reef Island, Bahrain Bay, Durrat Al Bahrain and Riffa Views.

This investment commits substantial capital in a foreign market: legal advice and a visit on site come before the purchase. The official sources consulted give no value threshold opening a right of residence: the question is put to the Nationality, Passports and Residence Affairs authority. The sale and rental of residential housing are exempt from VAT (National Bureau for Revenue).

The treaty of 10 May 1993, amended by the protocol of 7 May 2009, allocates the right to tax. Article 14 sets two rules: pensions paid in respect of past employment are taxable only in the state of residence, but pensions and sums paid under the social security legislation of a state are taxable in that state. Article 15 reserves public pensions to the paying state, except for industrial or commercial activity of the state.

Notice 2041-E of the French tax administration translates these rules for a resident of Bahrain: public pensions are taxable in France, private pensions outside social security are not, and social security pensions are. In practice, the basic scheme pension and compulsory supplementary pensions are therefore taxed in France, with withholding at source by the fund, while optional private pensions follow the state of residence. The starting point remains tax residence: article 4 first looks at the permanent home, then at the centre of vital interests, so that a retiree who keeps their home in France can remain a French tax resident. Article 20 provides for a tax credit in France to avoid double taxation.

On the Bahraini side, the National Bureau for Revenue website presents VAT, excise duties and the minimum top-up tax, with no personal income tax; a private pension or rent should be checked with that authority.

A non-resident declares French-source income every year, even when withholding at source has already been deducted. The minimum tax rates are 20% up to €29,579 of net taxable income and 30% above (2025 income return, notice 2041-E), with an option for the average rate when it is more favourable.

Without tax residence in France, no CSG, CRDS or Casa (French social levies) is deducted from the pension. CLEISS indicates that a health insurance contribution is withheld instead if the pensioner is covered by a French scheme, for example because they have rights during temporary stays in France: as a general rule 3.2% on the basic pension and 4.2% on the supplementary pension, 7.1% for a self-employed scheme. The exact deduction is confirmed with the pension fund.

The S1 form, which organises cover for retirees in the European Union, does not apply in Bahrain. CLEISS recommends three options for a retiree leaving for a country without an agreement: the local scheme, the CFE or private insurance. The CFE retirees’ plan starts at €147 a month depending on the country, age and household composition; it asks for no health questionnaire, whatever the age, and the waiting period is nil if enrolment takes place before departure or within three months of settling in. See health insurance for retirees abroad and the S1 form.

Health insurance Law No. 23 requires the non-working resident to pay their own premiums and those of their dependants, and cover continues, after residence is cancelled, for the period provided by law. The detail by status is in the guide to healthcare reimbursement in Bahrain, and how the system works in the guide to the Bahrain healthcare system. During temporary stays in France, a retiree who has contributed for at least 15 years is covered, except for a hospital stay of more than one month, which requires prior recognition; their spouse takes out insurance before travelling. Expavy helps you weigh these options against your situation.

France Diplomatie names Muharraq, Riffa, Jidhafs, Hamad Town and Isa Town as the main towns around Manama, on an archipelago of 760 km² spread over 33 islands. The official sources consulted give no average rent by district; the budget is built from local offers. VAT of 10% applies to most goods and services, with a zero rate for basic foodstuffs, private education and preventive and basic private healthcare, and an exemption for housing.

The guide to living in Bahrain describes the districts, schooling and everyday rules. The guide to budgeting for health abroad completes these benchmarks, and retirement insurance abroad brings the solutions together.

The France-Bahrain treaty also allocates inheritance taxes (article 18): real estate is subject to duties only in the state where it is located, and movable property, including shares, bonds and deposits, in the deceased’s state of residence at the time of death. A French national resident in Bahrain who owns a home and accounts in France therefore seeks advice on these two axes before drafting a will. A notary and a lawyer who know both legal systems secure the transfer.

The pensioner notifies their pension fund in writing of their address abroad. The pension is paid into a French account or, on request, a foreign account, with bank charges to check. Every year, the fund sends a life certificate, whatever the nationality, to be returned through the online personal account or by post, failing which payment may be suspended (Assurance retraite, the French pension insurance fund).

The Aspa (the French solidarity allowance for older people) and the supplementary disability allowance require residence in France: they are no longer paid abroad and are applied for again on return. The guide to receiving your pension abroad and the guide to retirement detail the steps, and insurance for returning to France prepares a possible return.