Saudi Arabia’s General Real Estate Authority has confirmed that a 5% real estate transaction tax applies to all property dealings across the kingdom, regardless of nationality. Non-Saudi buyers, however, face an additional 2% charge on transactions within designated geographic zones in Riyadh, Jeddah, Makkah, and Madinah.
The authority’s spokesperson, Tayseer Al-Mufraj, said the extra levy is applied on top of the standard transaction tax and is governed by the kingdom’s property regulations and their executive rules.
The two holy cities carry additional restrictions. Ownership in Makkah and Madinah is limited to Muslims, confined to specific zones, and subject to formal regulatory procedures, reflecting what the authority described as the cities’ religious and historical standing.
For Riyadh and Jeddah, the authority framed the geographic restrictions on foreign ownership as a tool to direct investment, support urban development, and improve quality of life. The aim, it said, is to sustain the real estate market and align it with broader development targets.
The clarification comes as Saudi Arabia has taken steps to open its property market to non-resident foreign buyers, with the Saudi Central Bank recently directing banks to open accounts for non-resident property owners.
