← Guides / Saudi Arabia

Saudi Arabia Property Tax Guide 2026

Saudi Arabia does not impose an annual property tax or capital gains tax on real estate. The primary property-related levy is a 5% real estate transaction tax (Ejar / رسوم التصرفات العقارية) applied to the transfer of real estate ownership. There is also a white land tax on undeveloped land within urban boundaries.

Overview — Property Taxation in Saudi Arabia

Property taxation in Saudi Arabia is relatively light compared to international standards. There is no annual property tax (rates), no capital gains tax on property sales by individuals, and no inheritance tax on property transfers. The main costs are the 5% real estate transaction tax (REST) on purchases, the white land tax on undeveloped plots, and potential Zakat obligations for Saudi/GCC nationals holding property as investment assets.

Real Estate Transaction Tax — 5% (Ejar)

The Real Estate Transaction Tax (REST), commonly referred to as Ejar, is a 5% tax on the gross value of real estate transfers. It is payable by the buyer at the time of property registration. The tax applies to the sale of residential, commercial, and industrial properties, as well as land. Certain exemptions apply, including transfers between spouses, inheritance transfers, and first-time home purchases up to SAR 1 million. The tax is collected by the Ministry of Justice through the real estate registration system.

White Land Tax

The White Land Tax (ضريبة الأراضي البيضاء) is an annual levy on undeveloped land within urban boundaries. The rate is 2.5% of the land value per year. The tax is designed to encourage development and curb land speculation. It applies to land owned by both individuals and companies, with certain exceptions for small plots (below 10,000 sq m) and agricultural land. The tax is administered by the Ministry of Municipal and Rural Affairs.

Zakat on Investment Property

Saudi and GCC nationals who hold real estate as an investment asset are required to include the value of such property in their Zakat calculation at 2.5% of the property's value. The primary residence is exempt. Rental income from investment property is not subject to income tax for individuals but may be included in the Zakat base for Saudi/GCC nationals. Expatriates do not pay any tax on rental income or property holdings.

No Capital Gains Tax on Property

Individuals selling property in Saudi Arabia are not subject to capital gains tax. Whether the property is a primary residence or an investment property, the gain is tax-free for individuals. Companies selling property are subject to the standard corporate tax rate of 20% (or Zakat at 2.5% for Saudi/GCC owned companies) on any gain realized. This favorable treatment makes Saudi Arabia attractive for real estate investors.

No Annual Property Tax

There is no annual recurring property tax (often called council tax or rates) in Saudi Arabia. Owners of residential, commercial, and industrial properties do not pay any annual tax based on the value of their property. The only recurring land-related charge is the White Land Tax, which applies only to undeveloped land within urban boundaries.

FAQs

Is the 5% real estate transaction tax applied to all purchases?

Yes, the 5% REST applies to most real estate transfers. However, first-time homebuyers may qualify for an exemption on properties up to SAR 1 million. Transfers by inheritance and between spouses are also exempt.

Are foreigners allowed to own property in Saudi Arabia?

Yes, non-Saudi individuals and legal entities may own property in Saudi Arabia, subject to approval by the Ministry of Interior and the Ministry of Municipal and Rural Affairs. Foreign ownership is generally limited to property for residence or licensed business activities.

Is rental income taxable for expatriates?

No. Rental income received by expatriate individuals is not subject to tax. Expatriates engaged in property rental as a business may have different obligations if registered commercially.

Disclaimer

This guide provides general information about property taxation in Saudi Arabia for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Saudi tax advisor or ZATCA directly for advice specific to your situation. InvestmentKit does not provide tax advice.

Related Guides

Azerbaijan Wealth Tax Guide 2026 — No Annual Wealth Tax, Municipal Property Tax as ProxyAzerbaijani wealth tax. Azerbaijan does not impose an annual net wealth tax. Municipal property tax at 0.5–1% serves as a proxy wealth tax on real estate. No net worth tax, no solidarity surcharge, noCzech Republic Corporate Tax Guide (19%, R&D Super-Deduction 200%, Patent Box, Thin Cap 2026)Czech corporate income tax — standard rate 19%, reduced rate 5% for investment funds, 0% for pension funds, R&D super-deduction 200%, patent box regime effective ~5%, thin capitalization rules, and trCôte d'Ivoire Crypto Tax Guide 2026 — Taxed as Movable Property, Capital Gains at Progressive RatesIvorian cryptocurrency taxation. Crypto is treated as movable property (biens meubles). Gains are taxed as capital gains at progressive IRPP rates (0-36%). Mining, staking, and trading are taxable. PrAntigua & Barbuda Personal Tax Guide: Progressive PIT 0-12% 2026Antigua and Barbuda personal income tax — progressive 0-12% rates, XCD 36,000 threshold, territorial system, and tax credits for 2026.Australia Land Tax Guide by State (Land Tax Rates NSW, VIC, QLD, WA, SA, TAS, ACT, NT Thresholds and Exemptions)the land tax in Australia by state — the land tax in the NSW, the VIC, the QLD, the WA, the SA, the TAS, the ACT and the NT; the land tax thresholds, the rates, the exemptions, the principal place of Botswana Tax Residency Guide 2026 — 183-Day Rule, DTTs 15+Botswana tax residency 2026. 183-day rule, resident vs non-resident, double taxation treaties (15+), permanent establishment, tie-breaker rules, and implications for individuals and companies.
Browse all guides →