REGA: Non-Saudi real estate transactions subject to 5% tax alongside 2% fee

Riyadh City

The Saudi Real Estate Authority (REGA) clarified that the real estate transaction tax is applied at a rate of 5% to both Saudis and non-Saudis in all cities across the Kingdom.
 

An additional 2% fee is imposed on non-Saudi real estate transactions involving properties located in Riyadh, Jeddah, Makkah, and Madinah, in accordance with the law and its executive regulations, in addition to the legally prescribed 5% real estate transaction tax, according to the authority's post on the “X” platform.
 

According to data available with Argaam, the foreign real estate ownership law entered into force on Jan. 22, 2026. In June, the Saudi Cabinet approved the executive regulations for the foreign real estate ownership law, as well as the geographical areas where non-Saudis are permitted to own property.
 

Umm Al-Qura Gazette, in its issue published on July 2, released the executive regulations of the foreign real estate ownership law, which include the applicable regulations and controls.