Updated September 2026
The two government charges
| Charge | Rate | Applies to |
|---|---|---|
| Real Estate Transaction Tax (RETT) | 5% | All property transactions in Saudi Arabia, Saudi and non-Saudi buyers alike |
| Non-Saudi fee | 2% | Transactions involving non-Saudis in the designated zones of Riyadh, Jeddah, Makkah and Madinah |
The law allows the non-Saudi fee to be set at up to 5%. REGA confirmed in July 2026 that it currently stands at 2%. The Implementing Regulations also set some transactions at zero, for example certain disposals by licensed developers. Always confirm the rate that applies on the day you transact.
Who pays RETT is a matter for the contract. Make sure it is stated clearly before you sign.
Worked example: a SAR 2,000,000 apartment in Madinah
| Item | SAR |
|---|---|
| Purchase price | 2,000,000 |
| RETT at 5% | 100,000 |
| Non-Saudi fee at 2% | 40,000 |
| Price plus government charges | 2,140,000 |
Illustration only, assuming the buyer pays RETT and no exemption applies. SAR 2,000,000 is about US$533,000 at the riyal’s fixed rate of 3.75 to the dollar.
Other costs to plan for
- Registration and transfer fees charged by the platforms, typically modest.
- Advisory fees, as set out in your advisory agreement.
- Legal fees for independent advice in Saudi Arabia and at home.
- Brokerage, where a licensed broker is involved on the seller’s side and the contract passes the cost to you.
- Currency conversion and transfer costs, which can be significant on large sums.
- Service charges and, if you let the property, management fees.
- Tax in your home country on rental income and on any gain when you sell.