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What you need to know about real estate transaction procedures and the authorities that regulate them
Register the transaction with ZATCA and get the reference number, enter the deal in the Real Estate Exchange or Real Estate Registry, the buyer approves and deposits the funds, then ownership transfers automatically and the seller receives the payment.
5% of the total transaction value. The seller is legally liable, though parties may agree otherwise. It is registered before the transfer is completed under the tax system in force since 10 April 2025.
The state bears the tax on the first SAR 1,000,000 of a citizen’s first home. An eligibility certificate from the Sakani platform is required, and any excess value is taxed.
Notable ones include endowments, charities, inheritance division, gifts between family members, transfers to a company wholly owned by the transferor (no share transfer for five years), and dealings with licensed developers.
The broker’s commission may not exceed 2.5% of the sale value or of one year’s rent under the commission schedule. It is subject to 15% VAT and the broker must be licensed.
Registering leases through the Ejar platform is mandatory. Published fees: SAR 125 per year for residential, SAR 200 for the first year of commercial and SAR 400 per renewal. Who bears them is by agreement.
The General Authority for Real Estate has frozen annual rent increases for residential and commercial properties within Riyadh’s urban boundary for five years from 25 September 2025. A vacant unit may not be let above its last rent registered on Ejar.
The Non-Saudi Real Estate Ownership Law (July 2025) applies from early 2026. It adds a fee of up to 5% for non-Saudis on top of the transaction tax, and REGA defines the permitted zones.
An annual fee on vacant residential or mixed-use land inside the urban boundary of at least 5,000 m², at not less than 2.5% of the land’s estimated value and up to 10%.
Information is based on sources published up to October 2026 and regulations may change. Check with the official authorities before closing any deal.
Sources: ZATCA Bayut Okaz – Ejar Okaz – Foreign ownership Raghdan – Transfer Raghdan – Rent freeze
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