Saudi property purchase costs
Everything you pay on top of the price, itemised, with the money that has to be in your account on the day at the top.
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- Sources cited
- Last reviewed: September 2026
The agreed price. Statutory fees are charged on the transaction value, not on what you pay in cash.
Leave at zero for a cash purchase. Some fees fall due only where there is a mortgage.
A rate the market agrees rather than one the law sets, so it is a field you edit. VAT is added on top of it.
Valuation, a no-objection certificate, legal fees and anything similar.
The relief comes off a slice of the price rather than off all of it.
Worked out in your browser: nothing is sent to a server
Cash needed on the day
378,750 SAR
78,750 of fees on a 1,000,000 purchase
Statutory fees
| Real estate transaction tax, 5% | 50,000.00 SAR |
Market costs
| Agent commission | 25,000.00 SAR |
| VAT on the commission | 3,750.00 SAR |
| Total fees and costs | 78,750.00 SAR |
| Fees as a share of the price | 7.88% |
| Total cost of buying | 1,078,750.00 SAR |
- If you are a citizen buying a first home, the Ministry of Municipalities and Housing may bear the tax on the first 1,000,000 SAR of the value. Tick the box above to see the difference, and obtain the certificate from Sakani before notarisation, because it is not granted automatically.
- An agent's commission is a negotiated price rather than a statutory fee, which is why it is a field you set and not one this site imposes.
- This is an estimate. The statutory fees come from the authority as at the date shown, the market costs are your own figures, and an authority may charge something not listed here.
How is the cost of buying worked out?
- Real estate transaction tax = transaction value x 5%
- Agent commission = price x the agreed rate, plus 15% VAT on it
- First home borne by the state = 5% of the first 1,000,000, so at most 50,000, on a Sakani certificate
- Cash needed = price minus the loan, plus all the fees and costs
Symbols
- Transaction value
- The agreed price, and not below fair market value. Writing a lower price does not reduce the tax
- Fee against price
- The tax is a fixed statutory charge; the commission is a negotiated price. That is why the two lists are kept apart
- Cash needed
- The deposit plus the fees. Fees are not lent against, so they come out of savings exactly as the deposit does
Related tools
What cash do I need to buy at a million?
Buying at 1,000,000 with a 700,000 loan and a 2.5% agent commission, without claiming the first-home relief.
- Real estate transaction tax: 1,000,000 x 5% = 50,000
- Agent commission: 1,000,000 x 2.5% = 25,000, and 15% VAT on it = 3,750
- Total fees and costs: 78,750, which is 7.88% of the price
- Cash needed on the day: 300,000 deposit + 78,750 = 378,750
The buyer needs 378,750 in cash, not 300,000. Were this their first home and were they an eligible citizen, the state would bear the tax on the first million, taking the fees to 28,750 and the cash needed to 328,750.
Which of these is a fee, and which is a price?
Work out the full cost of buying in Saudi Arabia: the real estate transaction tax, the agent commission and the VAT on it, with the state bearing it on a first home if you qualify.
The one statutory charge on buying property in Saudi Arabia is the real estate transaction tax, 5% of the transaction value, whose new law came into force on 10 April 2025 under Royal Decree M/84. It is charged on the agreed value provided that is not below fair market value, so a price written under the market does not reduce the tax.
The first-home relief is not an exemption in the law. Article 3 lists twenty-one total exemptions and a first home is not among them; anything further is left to the Council of Ministers. What actually happens is that the Ministry of Municipalities and Housing bears the tax on a citizen behalf for the first million of the value, up to SAR 50,000, through a certificate obtained from the Sakani platform. Which means it is not automatic: a buyer who has not obtained the certificate before notarisation pays in full.
What is left is not fees but prices: an agent commission is agreed in the market rather than set by law, and it carries 15% VAT because it is a taxable service, unlike the property tax itself. That is why this page keeps the two lists apart. And the figure at the top of the result is the cash needed on the day, not the total cost. Nobody is short of the whole price, because most of it is borrowed; what people are short of is the deposit plus the fees, because fees are not lent against and come out of the same savings. No listing states that number, and it is the first thing that catches a buyer out at the appointment.
- Real estate transaction tax = transaction value x 5%
- Agent commission = price x the agreed rate, plus 15% VAT on it
- First home borne by the state = 5% of the first 1,000,000, so at most 50,000, on a Sakani certificate
- Cash needed = price minus the loan, plus all the fees and costs
Questions about property purchase costs
What is the real estate transaction tax in Saudi Arabia?
5% of the transaction value. The new law came into force on 10 April 2025 under Royal Decree M/84, and the tax is charged on the agreed value provided it is not below fair market value.
Who pays the real estate transaction tax?
It falls due on the disposal at notarisation, and in many deals the seller carries it by custom, though it is negotiable within the price. This calculator shows it in the fee list, so take it out if you have agreed the other side will bear it.
What is the first-home relief, and how do I get it?
It is not an exemption in the law: Article 3 does not list a first home among its twenty-one exemptions. Instead the Ministry of Municipalities and Housing bears the tax on your behalf for the first million of the value, up to SAR 50,000. You obtain the certificate from the Sakani platform before notarisation, and it is not granted automatically.
Is there VAT on the property as well?
A residential property sale is exempt from VAT, and the real estate transaction tax stands in its place. The services around the deal, though, such as the agent commission, valuation and legal work, carry 15% VAT.
Why is cash needed shown at the top instead of the total cost?
Because the total cost is not what you are short of: most of it is borrowed. What you are short of is the deposit plus the fees, since fees are not lent against and come from the same savings, and no listing states that figure.
Is the agent commission set by law?
No. It is a price the parties agree rather than a fee, which is why it is a field you edit here and not one the site imposes. Around 2.5% is common in the market, and unlike the tax it is negotiable.
Sources
Reviewed September 2026- Real Estate Transaction Tax Law: Zakat, Tax and Customs Authority (ZATCA)
- First-home RETT borne by the state: Sakani, Ministry of Municipalities and Housing
Statutory articles this calculator applies
- KSA Real Estate Transaction Tax Law (Royal Decree M/84): 5% of the transaction value
- First-home RETT borne by the Ministry of Municipalities and Housing, via a Sakani certificate
Saudi Labor Law: Royal Decree No. M/51 dated 23/8/1426H (27 Sep 2005), as amended (latest amendment Royal Decree No. M/44 of 1446H, in force 2025-02-19)