Saudi Arabia Property Taxes and Costs for International Investors 2025 - Complete Tax Guide

Saudi Arabia Property Taxes and Costs for International Investors

Complete analysis of tax obligations, transaction costs, and ongoing expenses for foreign property investment in Saudi Arabia

5% RETT Transaction Tax
0% Annual Property Tax
0% Individual Capital Gains
20% Corporate Tax Rate

Tax Advantage: No Annual Property Taxes

Unlike most international markets, Saudi Arabia imposes no recurring annual property taxes on ownership, creating exceptional conditions for long-term property holding and investment strategies for international buyers.

Complete Tax Structure for International Property Investors

Understanding every tax obligation and cost component enables accurate investment planning and compliance for foreign property acquisition in Saudi Arabia.

5%
Real Estate Transaction Tax (RETT)
Applied to property transfers since October 2020. One-time cost paid by buyer during acquisition. Exemptions available for family transfers between spouses and relatives up to third degree.
0%
Annual Property Holding Tax
Saudi Arabia does not impose recurring annual property taxes on property ownership, creating significant cost advantages compared to markets with annual property tax obligations.
2.5%
White Land Tax (WLT)
Applied annually only to vacant urban land designated for development. Does not affect developed properties or buildings. Limited to specific designated urban areas.
0%
Individual Capital Gains Tax
Complete exemption from capital gains taxation for individuals on property appreciation. Enables tax-free wealth accumulation through property value increases.
0%
Individual Income Tax on Rental
No personal income tax on rental income for individual property owners. Rental income received directly by individuals remains untaxed.
20%
Corporate Tax on Rental Income
Corporate entities receiving rental income face 20% corporate tax rate. Applies when property ownership structured through Saudi Arabian companies.

Transaction Cost Planning for Riyadh Properties

Understanding complete transaction costs enables accurate investment budgeting for Saudi Arabia's capital market. Beyond the 5% RETT, international investors face legal fees, registration costs, and currency transfer expenses.

Professional legal representation remains essential for compliance with foreign ownership regulations and proper documentation.

Riyadh cityscape

Property Tax and Cost Calculator

Calculate exact taxes and transaction costs based on current Saudi Arabia regulations for international property investment

SAR
SAR
SAR 100,000
RETT Transaction Tax (5%)
Legal & Professional Fees
SAR 0
Annual Tax on Rental Income
SAR 10,000
Registration & Admin Costs
SAR 135,000
Total Transaction Costs

Detailed Cost and Tax Breakdown

Real Estate Transaction Tax (RETT) - 5% SAR 100,000
Legal Fees & Due Diligence SAR 15,000
Registration & Administrative Costs SAR 10,000
Currency Transfer & Banking Fees SAR 4,000
Annual Tax on Rental Income SAR 0

Tax Comparison: International Property Investment Markets

Saudi Arabia's tax structure provides significant advantages compared to other international property investment destinations, particularly regarding ongoing tax obligations and capital gains treatment.

Tax Category Saudi Arabia UAE Turkey Singapore UK
Annual Property Tax 0% - No annual tax 0% - No annual tax 0.1-0.6% annually 0% - No annual tax 0.5-3% annually
Transaction Tax/Stamp Duty 5% RETT 4% registration fee 4% property deed tax 1-4% stamp duty 5-15% stamp duty
Capital Gains Tax (Individual) 0% - Complete exemption 0% - No capital gains tax 0-35% depending on holding period 0% for individuals 18-28% for non-residents
Rental Income Tax (Individual) 0% - No personal income tax 0% - No personal income tax 15-35% progressive rates 0-22% progressive rates 20-45% for non-residents
Corporate Tax Rate 20% 9% 20-25% 17% 25%

Saudi Arabia

Annual Property Tax 0% - No annual tax
Transaction Tax/Stamp Duty 5% RETT
Capital Gains Tax (Individual) 0% - Complete exemption
Rental Income Tax (Individual) 0% - No personal income tax
Corporate Tax Rate 20%

UAE

Annual Property Tax 0% - No annual tax
Transaction Tax/Stamp Duty 4% registration fee
Capital Gains Tax (Individual) 0% - No capital gains tax
Rental Income Tax (Individual) 0% - No personal income tax
Corporate Tax Rate 9%

Turkey

Annual Property Tax 0.1-0.6% annually
Transaction Tax/Stamp Duty 4% property deed tax
Capital Gains Tax (Individual) 0-35% depending on holding period
Rental Income Tax (Individual) 15-35% progressive rates
Corporate Tax Rate 20-25%

Singapore

Annual Property Tax 0% - No annual tax
Transaction Tax/Stamp Duty 1-4% stamp duty
Capital Gains Tax (Individual) 0% for individuals
Rental Income Tax (Individual) 0-22% progressive rates
Corporate Tax Rate 17%

UK

Annual Property Tax 0.5-3% annually
Transaction Tax/Stamp Duty 5-15% stamp duty
Capital Gains Tax (Individual) 18-28% for non-residents
Rental Income Tax (Individual) 20-45% for non-residents
Corporate Tax Rate 25%
Jeddah waterfront

Jeddah Property Tax Considerations

Jeddah's commercial significance affects cost structures for international investors, particularly regarding professional service fees and regulatory compliance costs.

Understanding local market conditions helps optimize transaction costs and identify qualified professional service providers familiar with international investor requirements.

Essential Tax Planning Considerations for International Investors

International investors must consider home country tax implications, professional advisory requirements, and documentation costs for optimal compliance and tax efficiency across multiple jurisdictions.