Guide to Property Taxes in Saudi Arabia
| Tax Rate on Rental Income | |||
| Monthly Income | US$1,500 | US$6,000 | US$12,000 |
| Tax Rate | 20% | 20% | 20% |
In Saudi Arabia, non-resident individuals cannot own property directly. They must establish a local corporation to do so. In this case, both corporate and individual tax rates would apply similarly, as the taxation of income from property ownership would be subject to corporate tax rules for the entity.
Rental Income Tax
There is no individual income tax scheme in Saudi Arabia. Non-employment income is taxed as an entity or permanent establishment (PE).
Capital Gains
Capital gains are subject to the normal income tax rate applicable to the taxpayer. Non-resident capital gains tax rate is 20%.
| Tax Type | Rate |
| Capital Gains | 20% |
Corporate Taxation in Kazakhstan
Income Tax
Non-Saudi and non-GCC residents engaged in business activities within Saudi Arabia are subject to a corporate tax rate of 20% on their net adjusted profits.
| Tax Type | Rate |
| Corporate Tax | 20% |
Property Buying Costs and Taxes in Saudi Arabia
| Transaction Costs | ||
| Who Pays? | ||
| Registration Fee | 5.00% | buyer |
| Notary Fee | 0.00% | buyer |
| Legal Fees | 1.00% - 2.00% | buyer |
| Real Estate Agent's Fee | 2.50% | seller |
| Costs paid by buyer | 6.00% - 7.00% | |
| Costs paid by seller | 2.50% | |
| ROUNDTRIP TRANSACTION COSTS | 8.50% - 9.50% | |
| Source: Global Property Guide, PWC | ||
Property Holding Tax
Saudi Arabia does not impose a property holding tax.
