Renting out property in Kuwait while living in United States
Kuwait's rules for a landlord living in United States: ownership, the rent agreement, who withholds tax, and how the rent reaches you.
The short answers
- Can I own property in Kuwait?
- A citizen of Kuwait living abroad: Yes. A Kuwaiti living abroad buys like any citizen.
- A foreign national: No. A non-GCC foreigner cannot own land or a home in Kuwait. Decree-Law 7 of 2025 opened ownership only to companies, funds and portfolios listed or licensed in Kuwait, not to individuals. A foreigner's route to Kuwaiti rent is a long lease or a share in a listed vehicle, both outside this guide.
- Does the rent agreement need registering?
- No registration threshold. Notarisation is a choice the parties make at signing.
- Who withholds tax on the rent, and how much?
- No withholding at source. No. Kuwait has no personal income tax, no property tax and no tax on rent for any individual, resident or not.
- How does the rent reach me in United States?
- Kuwaiti banks open accounts for residents with a civil ID; a non-resident owner usually receives rent through a representative or a GCC bank.
- No exchange controls and no limit on transfers. Cash at an exchange house is capped per day; above that, transfers go through a bank account and need the Kuwait Mobile ID for online remittance.
- No limit and no declaration for the transfer itself; the income was already reportable when earned.
Because you are a citizen of
These follow your passport, wherever you live and wherever the property is.
Renting out property in Kuwait
What applies because the property is in Kuwait, whoever owns it.
Who may own residential property
| Citizens living in the country | Allowed Anywhere. |
|---|---|
| Residents of any nationality | Not allowed Residency gives no right to buy. The one exception under Decree-Law 74 of 1979 is a national of another Arab country, resident for ten years with a clean record, who may be granted one home of up to 1,000 square metres for the family's own use by a specific decree; it is rarely used. |
| Citizens living abroad | Allowed A Kuwaiti living abroad buys like any citizen. |
| Foreign nationals living abroad | Not allowed A non-GCC foreigner cannot own land or a home in Kuwait. Decree-Law 7 of 2025 opened ownership only to companies, funds and portfolios listed or licensed in Kuwait, not to individuals. A foreigner's route to Kuwaiti rent is a long lease or a share in a listed vehicle, both outside this guide. |
More on ownership
- Barred outright
- Every non-GCC individual, with the narrow Arab-resident exception above.
- Inheritance and gifts
- A non-Kuwaiti who inherits Kuwaiti property must sell within two years unless entitled to own; since 2025 an Arab national inheriting from a Kuwaiti mother is exempt from the forced sale. No inheritance tax.
- Owning through a company
- Only a company listed on Boursa Kuwait, a licensed real estate fund or a regulated portfolio may hold property with foreign owners, under Decree-Law 7 of 2025. Outside this guide.
Letting it out from abroad
- May a non-resident owner let it
- Yes, for the Kuwaitis and GCC nationals who can own; residency is not required to let.
- Licences, permits, landlord registration
- None for a long-term let.
- Local agent or representative
- In practice yes. Notarisation, rent certificates on the Sahel app and the rental court all assume a civil ID holder on the ground.
The rent agreement
- Written agreement required
- Yes. Decree-Law 35 of 1978, as amended by Decree-Law 95 of 2024, requires a written lease signed by both parties stating the rent and its due date.
- Mandatory standard form
- None mandatory. Ministry of Justice notarisation adds an executive formula that lets a landlord enforce unpaid rent without a full trial.
- Language
- Arabic governs; bilingual leases are common.
- Registry
- None for an ordinary tenancy. Notarisation at the Ministry of Justice is optional and worth having.
- When registration is required
- No registration threshold. Notarisation is a choice the parties make at signing.
- Who registers
- Either party can request notarisation; both sign before the notary, in person or through an attorney with a notarised Power of Attorney.
- Registration cost
- A small Ministry of Justice fee for notarisation.
- If it is not registered
- None for an unnotarised lease; it is still valid, but unpaid rent then needs a judgment from the rental judge rather than direct enforcement.
- Stamp duty
- None.
- Notarisation and witnesses
- Optional notarisation at the Ministry of Justice, which since 2024 makes the lease directly enforceable for arrears once the tenant has been notified and a non-payment certificate is issued.
- E-signature
- Recognised under the Electronic Transactions Law No. 20 of 2014; the Kuwait Mobile ID app signs for citizens and residents. Notarisation itself is still done at the Ministry.
- The usual term
- One year, renewed. Rent certificates and key-deposit certificates are issued through the Sahel app.
Rules the agreement must respect
- Deposit
- No statutory cap. One month's rent is usual; the Sahel app issues a deposit certificate that both sides can rely on.
- Rent increases
- Not for five years from the contract date or the last increase, and then only by agreement or by the rental judge where the rent is well below the market.
- Notice periods
- Set by the law according to the term and the rent period, from fifteen days to two months; a landlord may end a lease only on the statutory grounds.
- Disputes
- A single rental judge at the Court of First Instance, under the 2024 amendment, with the notarised lease enforceable directly for arrears.
- Mandatory disclosures
- Not applicable
Tax when the landlord lives abroad
- Is the rent taxed here
- No. Kuwait has no personal income tax, no property tax and no tax on rent for any individual, resident or not.
- Withholding at source
- No
- Withholding rate
- Not applicable
- Who withholds
- Not applicable
- What the tenant must register
- Not applicable
- How to reduce it
- Not applicable
- Filing and tax ID
- None for an individual.
- VAT or GST on rent
- None. Kuwait has not introduced VAT.
- Municipal and housing fees
- No annual property tax. Transfers carry a registration fee at the Real Estate Registration Department.
Money inside the country
- How tenants pay
- Bank transfer, KNET or cheque in dinars.
- Currency of rent
- KWD
- Bank account for a non-resident owner
- Kuwaiti banks open accounts for residents with a civil ID; a non-resident owner usually receives rent through a representative or a GCC bank.
- Paying rent to an overseas account
- Allowed. Nothing requires a local account, though cheques and the Sahel certificates assume one.
- Taking rent out of the country
- No exchange controls and no limit on transfers. Cash at an exchange house is capped per day; above that, transfers go through a bank account and need the Kuwait Mobile ID for online remittance.
Living in United States
What United States asks of its residents who own and let property abroad.
Owning property abroad from here
- Buying abroad
- No restriction. A US person may buy property anywhere the other country allows and move money out freely.
- Reporting foreign assets and accounts
- Foreign bank accounts over USD 10,000 in aggregate must be reported each year to FinCEN on the FBAR, and specified foreign financial assets on Form 8938 above its thresholds. Directly held foreign real estate is not itself reportable, but the account the rent lands in is.
- Tax at home on foreign rent
- Taxed. US citizens and residents are taxed on worldwide income wherever they live; foreign rent goes on Schedule E and foreign tax paid on it is credited through Form 1116.
- Bringing rent home
- No limit and no declaration for the transfer itself; the income was already reportable when earned.
- Digital identity for e-signing
- There is no national digital identity. Any e-signature platform the foreign side accepts does the job, or a notarised paper signature where the other country insists.
Sources
- Ministry of Justice of Kuwait (lease notarisation and the rental court) — www.moj.gov.kw
- Central Bank of Kuwait: the CBK law and foreign exchange supervision — www.cbk.gov.kw
- US Department of State: Kuwait investment climate statement (real estate ownership and remittance rules) — www.state.gov
- Prime Minister of India: the protocol amending the India–Kuwait tax treaty — www.pmindia.gov.in
- IRS Publication 515: withholding of tax on nonresident aliens (rents, the 30 percent rule, Form W-8ECI) — www.irs.gov
- IRS Publication 519: U.S. tax guide for aliens (the real property income election) — www.irs.gov
- IRS: FIRPTA withholding on the sale of U.S. real property by a foreign person — www.irs.gov
- IRS: how to apply for an ITIN — www.irs.gov
- IRS: instructions for Form 1040-NR — www.irs.gov
- IRS: the foreign tax credit — www.irs.gov
- IRS: Report of Foreign Bank and Financial Accounts (FBAR) — www.irs.gov
- FinCEN: report foreign bank and financial accounts — www.fincen.gov
- IRS: United States income tax treaties, A to Z — www.irs.gov
- eCFR: 24 CFR Part 35 Subpart A, lead-based paint disclosure on sale or lease — www.ecfr.gov
- GovInfo: Public Law 106-229, the Electronic Signatures in Global and National Commerce Act — www.govinfo.gov
- Florida Senate: SB 264 (2023), interests of foreign countries in real property — www.flsenate.gov
- USDA: Agricultural Foreign Investment Disclosure Act reporting portal — www.usda.gov
- California Legislature: AB 12 (2023), security deposits capped at one month — leginfo.legislature.ca.gov
- Income Tax Department of India: the India–USA tax treaty — www.incometaxindia.gov.in