What it costs to buy property in Makkah or Madinah: taxes and fees (2026)

The purchase price is only part of the picture. These are the taxes and fees that apply when a non-Saudi buys property in the Kingdom, under the framework in force in 2026.

Real Estate Transaction Tax (RETT)

RETT is charged at 5% of the property value on real estate disposals in the Kingdom. It is a standard cost of any purchase, Saudi or foreign.

The non-Saudi transfer fee

The 2026 ownership law allows a further fee of up to 5% on transfers involving non-Saudis. The executive regulations published in July 2026 set this fee at 2% for real estate rights acquired by non-Saudis in Riyadh, Jeddah, Makkah and Madinah. The rules do not fix who bears the cost, so allocation between buyer and seller is a genuine negotiation point and belongs explicitly in the contract.

Legal and professional fees

Independent legal and conveyancing support in Saudi Arabia typically costs roughly 0.3% to 1% of the purchase price depending on complexity, plus 15% VAT on the service fee. Advice in the buyer’s home country for cross-border matters is a separate line.

Ongoing costs

Service charges and community fees are set by each development and vary widely, so they belong on the checklist for any specific property. Rental income, where a unit is let, has its own tax treatment that deserves specialist advice.

A worked example

On a SAR 1,000,000 purchase, RETT of 5% adds SAR 50,000, and a non-Saudi fee at the full 5% adds a further SAR 50,000, bringing government charges to SAR 100,000 before legal fees. Precise figures depend on the final regulations and the contract, which is why quotes should always be itemised.