Omnia GuidesCosts, taxes and feesSaudi Arabia · Middle East

The costs

What it costs to buy property in Saudi Arabia

Saudi Arabia is cheap to hold and front-loaded to buy. There is no annual property tax on an occupied home and no capital gains tax for individuals, but a 5% transaction tax, an agency fee and, for foreigners, a fee of up to 5% more. Here is the true all-in figure.

Reviewed by: The Omnia Desk
Last reviewed: 13 June 2026
Reading time: 4 minutes

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Jeddah, the waterfront, 2026

At a glance

The essentials, before you read.

The all-in figure swings on one question: who bears the transaction tax. We model both before you reserve.

Transaction tax: 5% RETT
Non-Saudi fee: Up to 5% more
Agency: 2.5% + 15% VAT
Registration: ~1%
Annual property tax: None on a home
Capital gains tax: None for individuals
Vacant land: White Land Fee
All-in to buy: ~4-9%

On this page

01Cheap to hold, paid at purchase.
02What you pay to buy.
03A SAR 5m apartment.
04What you pay to hold.

01The headline

Cheap to hold, paid at purchase.

A low-friction market with one asterisk for foreign buyers, and one for vacant land.

Saudi Arabia is unusually light to own and concentrated to buy. There is no annual property tax on an occupied home and no capital gains tax for individuals. The cost sits in the transaction: a 5% transaction tax, an agency fee, registration, and, for a foreign buyer, a fee of up to 5% more. Two asterisks complete the picture. Foreign disposals can carry the additional fee, and vacant land, not a lived-in home, attracts the White Land Fee.

The defining cost is the 5% Real Estate Transaction Tax, settled with ZATCA at transfer.
A non-Saudi disposal can add up to 5% more, so the foreign transfer load reaches up to 10%.
No annual property tax on a home and no individual capital gains tax: holding is light.
The White Land Fee is a holding cost on vacant land, not on an occupied residence.

02To buy

What you pay to buy.

The transfer costs, and who bears each.

Costs to buyIndicative

Item	Amount	Notes
Real Estate Transaction Tax	5%	Seller's in law, often negotiated
Non-Saudi fee	Up to 5%	On a non-Saudi disposal
Agency	2.5% + 15% VAT	Default, negotiable in writing
Registration and notary	~1%	On transfer
First off-plan sale	RETT-exempt	On a developer's first sale

Indicative and current at the last review date. The non-Saudi fee mechanics were being finalised in the implementing regulations.

03Worked example

A SAR 5m apartment.

The all-in figure turns on who bears the transaction tax.

On a SAR 5,000,000 purchaseIllustrative

Item	Buyer bears RETT	Seller bears RETT
Transaction tax (5%)	SAR 250,000	SAR 0
Agency (2.5% + VAT)	SAR 143,750	SAR 143,750
Registration (~1%)	SAR 50,000	SAR 50,000
Buyer-side total	~SAR 445,000	~SAR 195,000
As % of price	~8.9%	~3.9%

Illustrative only, not a quotation. Foreign buyers should add the non-Saudi fee of up to 5% on a disposal. Component rates are verified; the registration figure is indicative.

Your number, not the table

Have Omnia model the all-in cost on a specific address, including who bears the transaction tax.

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04To hold

What you pay to hold.

Almost nothing recurs on an occupied home. The exceptions are vacant land and the service charge.

Holding a lived-in home in the Kingdom costs little. There is no annual property tax and no individual capital gains tax. Two recurring costs are worth naming. The White Land Fee is an annual charge on undeveloped land of 5,000 square metres or more, overhauled in 2025 to tiered rates of up to 10%, and it can reach vacant built units too. It does not touch an occupied residence. And a managed or branded residence carries an annual service charge set by the operator, higher for branded stock, which buys the standard that protects the asset.

The Omnia view

Saudi Arabia rewards the holder, not the trader. The cost is concentrated at the moment of purchase, and almost nothing recurs once the home is occupied.

The Omnia Desk · Gulf Markets

Reference

Key terms, defined.

RETT: Real Estate Transaction Tax: 5% of the transaction value, or fair market value if higher. In law it falls on the seller, but its incidence is negotiated.
Non-Saudi fee: An additional fee of up to 5% that can apply on a non-Saudi disposal, taking the total transfer load to as much as 10%.
White Land Fee: An annual fee on undeveloped land, overhauled in 2025 to a tiered structure of up to 10%. It is a holding cost on vacant land, not on an occupied home.
Service charge: The annual charge set by the operator of a managed or branded residence. It is not a tax, and it is higher for branded stock.

Common questions

Answered, in plain terms.

What is the total cost of buying a property in Saudi Arabia?

For a buyer who bears the transaction tax and uses an agent, all-in friction is roughly 7 to 9 percent of price: the 5% RETT, agency at about 2.875% including VAT, and around 1% in registration. Where the seller absorbs the RETT by statute, buyer-side friction falls closer to 4%. Foreign buyers should add a non-Saudi fee of up to 5% on a disposal.

How much is the Real Estate Transaction Tax?

5% of the transaction value, or fair market value if higher, settled with ZATCA at transfer. It replaced VAT on most real estate. The state covers it on the first SAR 1m of a Saudi citizen’s first home, but that relief does not extend to foreign buyers.

Is there an annual property tax in Saudi Arabia?

There is no recurring annual property tax on an occupied home. The only land-related annual levy is the White Land Fee, which applies to vacant undeveloped land of 5,000 square metres or more, and to vacant built units, at tiered rates. A lived-in residence is outside it.

Is there capital gains tax when I sell?

No capital gains tax applies to an individual selling a personal-use residence. The 5% transaction tax is the levy at the point of sale. Property held as a business or company asset is treated differently and should be reviewed on its facts.

Do foreign buyers pay an extra fee?

They can. Under the 2026 ownership law a non-Saudi disposal can carry an additional fee of up to 5% on top of the 5% RETT, so the headline transfer load reaches up to 10%. The detailed mechanics were being finalised in the implementing regulations, so we confirm the current position per transaction.

Written by

The Omnia Desk

Reports & Intel

Reviewed by

The Omnia Desk

Reports & Intel

Last reviewed 13 June 2026Next review September 2026

This guide is general information, not investment, legal or tax advice. Regulations evolve; figures are indicative and current at the last review date. Speak with an Omnia advisor for guidance on your circumstances.