New Real Estate Fees and Foreign Ownership Rules Take Effect

Saudi Arabia’s property sector is entering a new phase, as a package of updated fees and foreign-ownership rules takes effect alongside major real estate events held in Riyadh. The changes touch vacant properties, undeveloped land, and transactions involving non-Saudis.

Under the updated framework, vacant property fees are now in force in designated urban areas, with an annual fee of up to 5% of a building’s value, calculated on fair market rent and comparable properties. The framework allows this upper limit to be raised to as much as 10%. Separately, white land fees apply from 1 January 2026, with the land-size threshold revised to plots of at least 5,000 square metres within applicable zones.

For non-Saudis, a foreign real estate disposal fee of 2% now applies in Riyadh, Jeddah, Makkah, and Madinah. The standard real estate transaction tax remains 5% for applicable transfers, including foreign-related deals where no exemption applies. Some transactions carry a 0% rate, including inheritance divisions, final court judgments, expropriation for public use, donations to endowments and government entities, specified return-to-previous-owner cases within 180 days, certain joint-ownership divisions, qualifying diplomatic transfers, transfers to wholly owned Saudi companies or funds, and qualifying developer unit sales.

Non-Saudi property acquisition and disposal is handled through the Real Estate General Authority’s electronic portal and related property-registration channels, giving residents and investors a clear route to complete transactions.

The timing is notable: the Real Estate Future Forum 2026 in Riyadh coincided with the activation of the updated non-Saudi ownership rules and the new white land and vacant property fees. The Restatex Riyadh Real Estate Exhibition 2026 also featured official housing guidance and public Q&A sessions, including tax support for first-home buyers. For residents and expats weighing a purchase, the updates offer greater clarity on costs, exemptions, and the steps needed to buy or sell.

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