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Saudi real estate disposal fee set at 2% in four cities.

Executive regulations fix the REGA charge on non-Saudi disposals of real rights at 2% of value in the covered cities.

From our report: Saudi Arabia property taxes for foreign investors.

Argaam reported in Arabic on 29 October 2026 that the executive regulations under the Law of Real Estate Ownership by Non-Saudis set the fee the Real Estate General Authority collects on a non-Saudi’s disposal of real rights over property in the Kingdom at 2% in four cities. The report said the updated ownership system had entered into force from 1 January 2026 after Cabinet approval in July.

Um Al-Qura published the executive regulations in its issue of the previous Friday, Argaam said. Those regulations set out the controls and procedures for non-Saudi ownership and other real rights. The four cities named in the fee rule were not further detailed in the Argaam summary beyond the 2% rate itself. Which transactions count as a disposal, and the exact city list application in practice, were not spelled out in the report.

From the JournalRiyadh vs Jeddah: where to live, and what changes by neighbourhood.

Our take

Omnia Desk

The 2% is a sale-side cost in the main cities, not a purchase tax cut.

Non-Saudi buyers and sellers should budget the 2% REGA fee on disposals in the four cities the rule covers. It sits on top of the 5% Real Estate Transaction Tax that has applied to purchases since April 2025. Our guide to Saudi Arabia property taxes for foreign investors already put the combined government stack in those cities at about 7% across a foreign holding; this regulation simply locks the disposal leg at the figure we had flagged.

It does not change who may own under the M/14 framework now in force, nor does it add annual property tax, capital gains tax or personal income tax for individuals. The check for anyone weighing a later exit in Riyadh, Jeddah, Makkah or Madinah is simple: model the 2% on expected sale value alongside the 5% RETT paid on the way in. Off-plan stock we list under Wafi escrow is untouched by the fee until a disposal occurs. For the wider ownership rules see Saudi Arabia property ownership for non-Saudis: the M/14 law, now in force.

  1. 1Argaam (Arabic) · 29 October 2026تحديد رسم تصرفات غير السعوديين العقارية في 4 مدن عند 2%(opens in a new tab)

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