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 20 June 2026
Budget 5% at the point of purchase (Real Estate Transaction Tax, paid by all buyers) and up to 5% at the point of exit (the non-Saudi disposal fee, paid only by foreign sellers). Combined, that's why the cost of foreign ownership is often quoted as roughly 10% of property value across the full hold period — not 10% upfront.
| Charge | Rate | When it's paid | Who pays it |
|---|---|---|---|
| Real Estate Transaction Tax (RETT) | 5.0% | At purchase | All buyers — Saudi and non-Saudi |
| Non-Saudi disposal fee | Up to 5.0% | At exit / resale | Non-Saudi sellers only |
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.
This is the fee that's specific to foreign ownership. REGA is authorized to levy a fee of up to 5% of the property's value specifically when a non-Saudi seller disposes of a property. It does not apply at the point of purchase — only when you eventually sell.
A SAR 2,500,000 residential purchase in Riyadh, cash payment, held for the long term:
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.
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