Buying Property in Saudi Arabia: What It Actually Costs
Whether you're buying your first investment property or expanding your portfolio, understanding all the upfront and ongoing costs is essential. This guide walks you through every tax, fee, and expense you can expect — so there are no surprises on transfer day.
Last updated: 2 May 2026
Budget 8–10% above the purchase price for taxes and fees when buying property in Saudi Arabia. The calculator below gives you an exact figure for your situation.
Real Estate Transaction Tax (RETT)
5% Real Estate Transaction Tax on all property purchases, paid at the time of notarization via ZATCA. Replaced 15% VAT on residential property (April 2025). No progressive brackets — flat rate regardless of property value or buyer nationality.
Real Estate Transaction Tax (RETT) is a flat rate of 5.00% of the purchase price.
What You'll Pay at Transfer
On top of the transfer tax, there are several legal and administrative fees that you need to budget for. Here's what to expect.
Transfer / conveyancing fees
These fees apply whether you're paying cash or taking out a bond.
Bond registration fees (only if you're taking a bond)
If you're financing your purchase with a home loan, the bank's bond also needs to be registered at the Deeds Office. These are the fees for that process.
Agent Commission
Agent commission is capped at 2.5% of the property value by Saudi regulation. Typically paid by the seller. 15% VAT applies on the commission amount.
Your Monthly and Annual Costs as an Owner
The purchase price is just the beginning. As a property owner in Saudi Arabia, you'll have recurring costs that eat into your rental income. Knowing these upfront helps you model realistic returns.
- annualProperty InsuranceBuilding insurance covering structure and common areas. Typically 0.1–0.2% of property value per year (SAR 1,200–2,000 for a mid-market apartment).Typically escalates ~3% per year
- annualMaintenance ReserveBudget for interior repairs and maintenance. Typically 1–2% of property value per year.Typically escalates ~3% per year
Additional costs for Villa / Townhouse properties
- Compound / Community FeeCommunity maintenance fee for gated compounds. Covers security, landscaping, and common amenities. Typically SAR 8,000–20,000/year depending on the compound.Charged annual
Additional costs for Apartment properties
- Service ChargeAnnual service charge covering building maintenance, common areas, elevator, and facilities. Calculated per sqm (SAR 20–80/sqm/year). SAR 5,000–15,000/year for a mid-market 100 sqm apartment.Charged annual
Additional costs for Commercial properties
- Service ChargeBuilding service charge for commercial units. Note: commercial property leases are subject to 15% VAT (charged to the tenant, not modelled here).Charged annual
Additional costs for Short-Term Rental properties
- Service ChargeBuilding service charge — same as standard apartment.Charged annual
- STR Hosting PermitAnnual short-term rental hosting permit. Important: STR hosting permits are currently restricted to Saudi nationals only. Foreign investors should verify eligibility before relying on STR income.Charged annual
- Municipality / Tourism LevyMunicipality levy on short-term rental revenues. Automatically scales with your rental income in projections.
Don't forget escalation: Most recurring costs increase every year. Budget for 3–6% annual increases on rates, insurance, and maintenance. The ROI calculator lets you set a custom escalation rate for each expense.
When You Sell: Capital Gains Tax
Good news — there is no Capital Gains Tax in Saudi Arabia. Saudi Arabia has no personal income tax or capital gains tax. The 5% RETT applies on sale instead.
Saudi Arabia does not impose capital gains tax on property sales for individuals. The 5% RETT on the sale transaction is the only exit tax. Note: foreign-owned companies pay 20% corporate income tax on gains; Saudi/GCC-owned entities pay 2.5% Zakat instead.
Costs of Selling Your Property
When you eventually sell, there are costs that come out of your sale proceeds before you see the cash. Here's what to factor in when modelling your exit.
Buying Property in Saudi Arabia as a Foreign National
As part of Vision 2030, Saudi Arabia has significantly liberalised foreign property ownership. Key considerations for foreign investors:
- 1 Designated zones: Foreign ownership is permitted in specially designated zones, initially focused on Riyadh, Jeddah, and other major urban and economic centres. The old SAR 30 million threshold has been eliminated.
- 2 Makkah & Madinah restricted: Property ownership in Makkah and Madinah is restricted — limited to Muslim individuals and specific Saudi entities under strict conditions.
- 3 No income tax or CGT: Saudi Arabia has no personal income tax or capital gains tax. The 5% RETT on sale is the only exit tax for individuals. Foreign-owned companies pay 20% corporate income tax on gains.
- 4 Financing: Islamic financing (Murabaha, Ijara) is available through Saudi banks. The Saudi Real Estate Refinance Company (SRC) offers competitive programmes. Foreigners may face stricter eligibility and LTV requirements.
- 5 Same tax treatment: Foreign buyers pay the same 5% RETT as Saudi nationals. There are no foreign buyer surcharges or additional transfer taxes.
- 6 Timeline: A typical purchase takes 2-4 weeks from signed agreement to title transfer via the Najiz digital notarization platform.
Which Property Type Is Right for You?
Different property types come with different income potential, vacancy assumptions, and cost profiles. Here's how the main types compare in our calculator defaults for Saudi Arabia.
- Agent commission
- 2.50%
- Vacancy rate
- 8%
- Rent escalation
- 5.0% p.a.
- Agent commission
- 2.50%
- Vacancy rate
- 10%
- Rent escalation
- 5.0% p.a.
- Agent commission
- 2.50%
- Vacancy rate
- 15%
- Rent escalation
- 4.0% p.a.
- Agent commission
- 2.50%
- Vacancy rate
- 30%
- Rent escalation
- 5.0% p.a.
Explore Other Markets
Comparing property investment across countries? These guides cover the same detail — transfer taxes, closing costs, ongoing expenses, and capital gains tax.
Ready to Run the Numbers?
Our free calculator puts all of these costs together in one place — transfer duty, closing fees, ongoing expenses, bond repayments, and your projected exit return. Takes about 2 minutes.
Use the free Saudi Arabia ROI calculator →