Costs & Fees · ZATCA & REGA

What it actually costs to buy property in Saudi Arabia as a foreigner

Q: How much does it cost to buy property in Saudi Arabia as a foreigner?

Total government charges run 7% of the property's value across the full hold period in Riyadh, Jeddah, Makkah and Madinah: a 5% Real Estate Transaction Tax (RETT) applies to all buyers at purchase, and a confirmed 2% disposal fee applies to non-Saudi sellers at exit in the four named cities. The disposal fee does not apply in the Eastern Province or other designated zones under current regulations.

Q: What is the non-Saudi disposal fee?

The disposal fee is a confirmed 2% charge levied by REGA on non-Saudi sellers when they exit a property in Riyadh, Jeddah, Makkah or Madinah. Confirmed by REGA spokesperson Taisir Al-Mufarrij (8 July 2026) and Greenberg Traurig's review of the implementing regulations approved 23 June 2026. Unlike RETT, it applies only to non-Saudi sellers, only at the point of sale, and only in the four named cities. Ten exemption categories apply.

Q: Is there a fee for Premium Residency in Saudi Arabia?

Yes. The Premium Residency programme carries a one-time fee of SAR 800,000, separate from any property transaction taxes or fees, and separate from the standard real estate purchase costs.

Q: Are there ongoing costs after buying property in Saudi Arabia?

Yes. Foreign owners should budget for ongoing operating expenses such as property management, maintenance, and any applicable service charges, typically modelled as a percentage of annual rental income for investment properties.

Two government charges apply on top of the purchase price — one at buying, one at exit. Here's the exact rate for each, where the "roughly 10%" figure comes from, and a worked example on a real budget.

Sourced from ZATCA and REGA · Verified against SAKK.AI's tracked KB anchors, last confirmed 8 July 2026 · Disposal fee rate confirmed by REGA spokesperson statement and Greenberg Traurig client alert reviewing the implementing regulations

Short answer

Budget 5% at the point of purchase (Real Estate Transaction Tax, paid by all buyers) and 2% at the point of exit in Riyadh, Jeddah, Makkah and Madinah (the non-Saudi disposal fee, paid only by foreign sellers in the four named cities). Combined government cost across the full hold period: 7% in the four named cities. The disposal fee does not apply in the Eastern Province or other designated zones under the current regulations.

The two charges, in detail

Charge	Rate	When it's paid	Who pays it
Real Estate Transaction Tax (RETT)	5.0%	At purchase	All buyers — Saudi and non-Saudi · Kingdom-wide
Non-Saudi disposal fee	2.0%	At exit / resale	Non-Saudi sellers only · Riyadh, Jeddah, Makkah and Madinah

Real Estate Transaction Tax (RETT)

RETT is a standard 5% tax confirmed by ZATCA on most real estate transactions in the Kingdom. It applies equally regardless of nationality, and is not a foreign-buyer-specific charge — it's simply the baseline transaction tax every buyer pays.

The non-Saudi disposal fee

This is the fee specific to foreign ownership. The implementing regulations approved by the Council of Ministers on 23 June 2026 confirm the operative rate at 2% of the transaction value, levied by REGA when a non-Saudi seller disposes of a property. It does not apply at the point of purchase — only when you eventually sell. The base law (Royal Decree M/14) authorised REGA to levy up to 5% — the confirmed operative rate is 2%. Source: REGA spokesperson statement, Saudi Gazette, 8 July 2026 · Greenberg Traurig client alert, National Law Review, 6 July 2026.

City-scoping — important: The 2% disposal fee applies exclusively to transactions in Riyadh, Jeddah, Makkah and Madinah. The Eastern Province and other designated zones outside these four cities are not named in the regulations — the disposal fee does not apply in those locations under the current framework. Verify applicability for your specific zone with a REGA-licensed agent before transacting.

Why this matters for return calculations: because the disposal fee is charged on exit rather than entry, it affects your net proceeds at sale and your realized IRR, not your upfront cash requirement. At 2% on a SAR 2.5M property, the disposal fee is SAR 50,000 — significantly below the SAR 125,000 that would have applied at the 5% statutory cap. Modelling it correctly requires knowing your exit value, not just your purchase price.

Other costs to budget for

Premium Residency fee — a one-time charge of SAR 800,000 for investors pursuing residency through the Premium Residency programme, entirely separate from transaction taxes
Financing costs — for buyers using a mortgage, interest rates and loan-to-value ratios affect total cost of ownership and are not part of the government fee structure
Operating expenses — ongoing costs such as property management and maintenance, typically modelled as a percentage of annual rental income for investment properties
Vacancy allowance — a prudent allowance for periods without a tenant, which affects realized net yield versus the advertised gross yield

Worked example

A SAR 2,500,000 residential purchase in Riyadh, cash payment, held for the long term:

SAR 2,500,000 purchase — Riyadh

Cash purchase · illustrative only · figures per SAKK.AI KB, verified 8 July 2026 · disposal fee confirmed by REGA spokesperson statement

Purchase priceSAR 2,500,000

RETT (5.0%, paid at purchase)SAR 125,000

Total due at purchaseSAR 2,625,000

Disposal fee (2.0%, paid at future exit — Riyadh, Jeddah, Makkah, Madinah only)SAR 50,000

This example excludes financing costs, operating expenses, and any Premium Residency fee, which apply only if relevant to your specific route. For your exact numbers — including net yield, IRR, and the full cost waterfall for your city, budget, and payment plan — use the SAKK.AI calculator.

Frequently asked questions

How much does it cost to buy property in Saudi Arabia as a foreigner?

Total government charges across the full hold period run 7% of the property's value in Riyadh, Jeddah, Makkah and Madinah — 5% RETT at purchase (all buyers) plus 2% disposal fee at exit (non-Saudi sellers only, four named cities only). The disposal fee does not apply in the Eastern Province or other designated zones under current regulations. For other costs — agency fees, financing, operating expenses — use the SAKK.AI calculator for your specific budget and city.

What is the Real Estate Transaction Tax (RETT) in Saudi Arabia?

RETT is a 5% tax on the value of most real estate transactions, confirmed by ZATCA, applying equally to Saudi and non-Saudi buyers. It's paid at the time of the transaction and is separate from the non-Saudi disposal fee.

What is the non-Saudi disposal fee?

A charge of 2% of the transaction value levied by REGA specifically on non-Saudi sellers when they exit a property in Riyadh, Jeddah, Makkah or Madinah. The rate was confirmed by REGA spokesperson Taisir Al-Mufarrij (Saudi Gazette, 8 July 2026) and by Greenberg Traurig's review of the implementing regulations (National Law Review, 6 July 2026). Unlike RETT, it applies only to non-Saudi sellers, only at the point of sale, and only in the four named cities. Ten exemption categories apply — including transfers to wholly owned companies or investment funds. Verify your specific situation with a REGA-licensed agent.

Is there a fee for Premium Residency in Saudi Arabia?

Yes — a one-time fee of SAR 800,000, separate from any property transaction taxes or fees.

Are there ongoing costs after buying property in Saudi Arabia?

Yes. Budget for ongoing operating expenses such as property management and maintenance, typically modelled as a percentage of annual rental income for investment properties.

Model your exact costs, not an estimate

Run your specific budget, city, and payment plan through the full cost waterfall — RETT, disposal fee, financing, and net yield in one view.

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