Real Estate Authority: 5% Transaction Tax and 2% Additional Fee on Non-Saudis in 4 Cities
The spokesperson for the General Authority for Real Estate, Taysir Al-Mufrej, confirmed that the real estate transaction tax, set by law at a rate of 5%, applies to all real estate transactions for both Saudis and non-Saudis in various cities of the Kingdom.
He explained that transactions by non-Saudis for properties located within the geographic boundaries specified in Riyadh, Jeddah, Mecca, and Medina are also subject to an additional fee of 2%, in accordance with the provisions of the system and the executive regulations, in addition to the established real estate transaction tax.
The General Authority for Real Estate clarified that the regulation of non-Saudis owning property in the four cities comes within controls that consider the privacy and developmental goals of each city, as Mecca and Medina are subject to special provisions that preserve their religious and historical significance, with ownership restricted to Muslims, within specified boundaries, and according to the approved regulatory procedures.
It added that Riyadh and Jeddah represent major economic and urban centers in the Kingdom, and the regulation of non-Saudis owning property in them within specific geographic areas aims to support urban development, enhance quality of life, and direct real estate investments, contributing to the sustainability of the real estate market and achieving developmental targets.
Original source: Okaz
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