What it costs to buy property in Saudi Arabia
The price is not the bill. Here is everything on top of it, who normally pays each item, and a worked example so you can see the real number before you decide.
Part of the guide to buying property in Saudi Arabia. The order these fall in is set out in the nine steps.
Every cost, in one table
| Item | How much | When | Who normally pays |
|---|---|---|---|
| Real estate transaction tax | 5% of the price | Before transfer | Usually the seller — negotiable, put it in writing |
| Deed transfer | about SAR 1,600 – 2,150 | At transfer | Buyer |
| Brokerage | up to 2.5% | On completion | Buyer, capped by regulation |
| Valuation | varies with the property | Before offer or before finance | Buyer |
| Power of attorney and attestation | varies by country | Before signing | Buyer, only if you cannot attend |
| Annual property tax | none | — | There is no yearly property tax in Saudi Arabia |
| White land tax | on undeveloped land, not homes | Annually | Landowner — a reason to be careful with plots |
| Disposal fee when a non-Saudi sells | up to 5% may apply | On your exit | Confirm the current figure before you commit |
A worked example
An apartment at SAR 2,000,000, bought by someone from overseas, with the transaction tax on the seller as is normal.
| Line | Amount |
|---|---|
| Purchase price | SAR 2,000,000 |
| Brokerage at 2.5% | SAR 50,000 |
| Deed transfer | about SAR 2,000 |
| Valuation | SAR 2,000 – 5,000, by property |
| Transaction tax, if you agree to carry it | SAR 100,000 |
| Cash needed, tax on the seller | about SAR 2,055,000 |
| Cash needed, tax on you | about SAR 2,155,000 |
That single line — who carries the 5% — is SAR 100,000 on a two million riyal flat. It is the most valuable sentence in the contract and the one most often left vague. We put it in writing every time.
What it costs to hold
There is no annual property tax, which is genuinely unusual and is a real part of the investment case. What you do pay while you own it: service charges in a managed building, management and letting fees if you are not in the country, maintenance, and the months a unit sits empty between tenants.
Those are the numbers that turn a 7% gross yield into something smaller, and they are set out in the investment guide.
What it costs to leave
The 5% transaction tax applies again on the sale, and a disposal fee of up to 5% can apply where a non-Saudi is selling. Confirm the current figure with us before you buy, not after — the exit cost belongs in the entry decision.
Questions people ask
Who pays the 5% transaction tax in Saudi Arabia?
Usually the seller, but it is legally negotiable. Whoever carries it should be written into the contract, because on a SAR 2 million property it is SAR 100,000.
Is there an annual property tax?
No. There is no yearly property tax on a home. White land tax applies to undeveloped land, which is one reason plots are a different proposition from built property.
How much is agent commission?
Capped at 2.5% by regulation. Ours is agreed in writing before anything is signed.
What does it cost to transfer the deed?
Roughly SAR 1,600 to 2,150, paid by the buyer at transfer.