Saudi Arabia: a foreigner pays 2% on top of the 5% tax in four cities
The law on real estate ownership by foreigners has been in force since January 22, 2026; the regulation was published on July 3, 2026: a 2% fee on the transaction in Riyadh, Jeddah, Mecca and Medina, 0% elsewhere. The 5% real estate transaction tax (RETT) is paid by all buyers; in Mecca and Medina only Muslims may own property.
What this changes in the calculation
Purchase costs in the four cities are 7% of the price instead of 5%.