- Brokers, marketers and consultants need a Fal licence from the Real Estate General Authority (REGA).
- Rental contracts follow the unified lease through the Ejar network.
- The real estate transaction tax is 5% of the agreed price, and the seller pays it.
- A new law opens property ownership to non-Saudis in designated zones. It was set to take effect in January 2026.
Do you need a Fal licence to work in real estate in Saudi Arabia?
If you broker, market or advise on property, yes. The Fal licence comes from the Real Estate General Authority (REGA).
Who needs a Fal licence?
Brokerage and marketing need one, for individuals and for establishments. So do consultations and analyses. Advertising needs a licence held by the license holder.
Which activities are only for establishments?
Property management, facility management and auctioning are open to establishments only. A person working alone cannot hold these licences.
What does an individual need to qualify?
- be at least 18 years old
- have no prior criminal charges or misconduct records, unless the rules say otherwise
- pass the qualification programme for each activity
- pay the licence fees, except for the marketing and advertising licence
What is Ejar and why does it matter for landlords and brokers?
Ejar is the electronic network that organises rental in the Kingdom. It protects the rights of everyone in a lease.
What does Ejar do?
It is the integrated system for leasing. Contracts are made and recorded there, so each side has proof of what was agreed.
Is the lease contract the same for everyone?
Brokers must use the unified leasing contract. It contains mandatory articles under Cabinet Resolution No. 405. You cannot remove them. For questions, REGA lists the number 199011.
What is the real estate transaction tax in Saudi Arabia?
It is a tax on transfers of property. It is separate from VAT and from broker fees.
What is the RETT rate?
The rate is 5%.
Who pays the RETT?
The seller is obliged to pay, before or during the transfer.
What is the tax based on?
It is based on the price agreed between the buyer and the seller. That price cannot be lower than the fair market value of the property at the time of transfer.
Which transfers are taxed?
Transfers of ownership through a sale, a lease-to-own deal, a Murabaha and similar routes are covered, with a list of exceptions. For example, a company-to-company or fund contribution can be exempt if the strict conditions are met. Ask a tax adviser before you rely on an exemption.
Can foreigners own property in Saudi Arabia?
Yes, under a new law, but only where it allows. The details depend on the implementing regulations.
What is the new ownership law?
The Law of Real Estate Ownership by Non-Saudis was published on 25 July 2025. It replaces the 2000 law and was set to take effect 180 days later, in January 2026.
Where can non-Saudis own property?
In zones the Council of Ministers will designate. Makkah and Madinah stay largely closed, with narrow exceptions. Foreign residents may own one home for personal use outside the zones. Foreign companies may buy property they need for their business and for staff housing.
Are there fees and penalties?
A transfer fee of up to 5% of the property value may apply when non-Saudis dispose of property. Violations can bring fines of up to SAR 10 million per offence. In serious cases a forced sale can be ordered.
How should you check a property deal before you pay?
This part is our advice. It is a short list you can follow on any deal.
Is the broker licensed?
Ask for the Fal licence number and confirm it with REGA. Do not pay a deposit until you have done this.
Is the title registered?
Under the new ownership law, acquisitions must be registered in the national Real Estate Registry to be legally effective. Ask to see the registration, not only the contract.