Investing in Riyadh: Yields, Appreciation & Ownership
Who can buy, how ownership works, and the taxes and duties for buying property in Riyadh.
Who can buy in Riyadh
Foreign ownership runs under the Law of Real Estate Ownership by Non Saudis, gazetted in July 2025 and effective from January 2026. Non Saudis can buy within designated zones set by the Council of Ministers, expected to include parts of Riyadh and Jeddah. Foreign residents may also own one home outside those zones strictly for personal use. Makkah and Madinah remain largely closed to non Muslim buyers. GCC nationals and Premium Residency holders enjoy near parity with Saudis.
| Buyer | Permitted | Tenure | Conditions |
|---|---|---|---|
| Saudi citizen | Yes | Freehold | No restriction nationwide |
| GCC national | Yes | Freehold | Broad parity with Saudi citizens for residential use |
| Foreign national, resident in Saudi Arabia | Conditional | Freehold | One residential property outside designated zones; broader rights inside zonesApproval: Real Estate General Authority registration |
| Foreign national, non resident | Conditional | Freehold within designated zones only | Makkah and Madinah remain restrictedApproval: Council of Ministers and REGA approval |
Saudi Arabia rule, applies in Riyadh.
Stamp duty and registration in Saudi Arabia
Saudi Arabia has no traditional stamp duty. The headline cost is the 5 percent Real Estate Transaction Tax, technically owed by the seller but often negotiated into the price. Expect title registration with the Real Estate General Authority, notarisation, and brokerage around 2.5 percent. All in, transaction costs typically land near 7 to 9 percent of the purchase price.
| Property value | Stamp duty | Registration |
|---|---|---|
| All values, residential and commercial | 0 percent, no stamp duty regime | RETT 5 percent on sale value, seller liability |
| First home for an eligible Saudi citizen | 0 percent | RETT exempt on the first 1 million riyals of value |
| Title and brokerage costs across all deals | 0 percent | REGA registration plus brokerage, roughly 2.5 to 3 percent combined |
Saudi Arabia rule, applies in Riyadh.
Capital gains on a sale
Saudi Arabia does not levy capital gains tax on individuals selling residential property. Instead a Real Estate Transaction Tax of 5 percent on sale value applies, paid by the seller, regardless of profit or holding period. Foreign owned companies pay 20 percent corporate income tax on real estate gains, while Saudi or GCC shareholders may face 2.5 percent Zakat instead.
| Holding period | Classification | Tax rate | Indexation |
|---|---|---|---|
| Any holding period, individual seller | Transaction tax, not CGT | 5 percent of sale value as RETT | NA, applied to sale price |
| First home, eligible Saudi buyer | Partial exemption | RETT waived up to a 1 million riyal cap | NA |
| Corporate seller, foreign owned | Corporate gain | 20 percent corporate income tax on the gain | No |
Saudi Arabia rule, applies in Riyadh.
Laws change. Always consult a licensed real estate attorney before purchasing. Consult a qualified chartered accountant for advice specific to your tax profile. Rules change; verify with a professional before you transact.
Frequently asked questions about Riyadh
With conditions. One residential property outside designated zones; broader rights inside zones
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