RIYADH — Saudi Arabia’s General Real Estate Authority (REGA) has clarified the property transaction tax rules for foreign buyers, confirming that the standard 5% real estate transaction tax applies to all property transfers made by both Saudi and non-Saudi buyers across the Kingdom.

In addition to the 5% tax, REGA said foreign buyers purchasing property within designated ownership zones in Riyadh, Jeddah, Makkah, and Madinah are required to pay an extra 2% fee under the Foreign Ownership of Real Estate Law and its executive regulations.

The authority explained that the property ownership regulations differ across the four cities to support their unique development goals and local characteristics.

For Makkah and Madinah, ownership remains restricted to Muslims and is permitted only within approved areas and according to established legal procedures, reflecting the religious and historical significance of the two holy cities.

REGA added that Riyadh and Jeddah, as Saudi Arabia’s main economic and urban hubs, have designated ownership zones intended to encourage sustainable real estate investment, support urban development, improve quality of life, and strengthen the long-term stability of the property market.

Source:Saudi Gazette