SAUDI ARABIA

Residency / Citizenship by Real Estate Purchase

• Real estate purchase itself does not grant residency.
• Premium Residency is possible with:
  — ownership of real estate ≥ SAR 4 million (~1.1 million USD) — Real Estate Owner Residency or — investments ≥ SAR 7 million (~1.9 million USD) with job creation.
• Premium Residency — similar to a green card: 1–5 years (renewable) or permanent (one-time fee SAR 800,000), without citizenship.
• Citizenship — almost inaccessible, only through royal decree or long-term naturalization.

Language

Official — Arabic. English is used in business environments and major cities. Russian — limited, mainly in the luxury services segment.

Visa Regime

Saudi Arabia's visa regime requires a visa for most visitors, though some nationalities are exempt. Several types of visas are available, including tourist, business, and Hajj/Umrah visas, which can be applied for online, on arrival, or in advance through a Saudi embassy. All applicants must have a passport valid for at least six months. 

Standard of Living (2025)

• High level of security, medicine, and infrastructure, especially in new districts.
• The state actively invests in tourism, education, and digital economy.
• Vision 2030 is changing the country's appearance: mega-projects like NEOM are emerging, restrictions are being reduced, and access for foreigners is expanding.

Economy. Currency

1. Saudi Riyal (SAR) has been pegged to the US dollar since 1986 — fixed exchange rate 1 USD = 3.75 SAR. The currency is stable, no devaluation risks.
2. Inflation:
• 2023: 2.8%
• 2024: 2.2%
• 2025 Forecast: around 2%. The government controls price growth.
3. GDP Growth:
• 2023: 3.3%
• 2024: 2.8%
• 2025 Forecast: +3-3.5%. The economy is diversifying due to Vision 2030 — growth is occurring outside the oil sector.
4. Drivers: government investments (PIF), mega-projects NEOM, Red Sea, Qiddiya. Tourism, IT, logistics, and green energy are actively developing.
5. Tourism: goal — 100 million tourists per year by 2030. In 2024 — 29.7 million.
6. Real Estate Market: In 2024 — record activity: over 622,000 transactions were concluded totaling 2.5 trillion SAR (~666 billion USD) — a 47% increase in volume and 37% increase in the number of transactions compared to 2023. In the first half of 2025, the trend continues: sales in Riyadh increased by +13%, in Jeddah — by +43.5%. The housing price index in 2024 increased by 3.6%, with villas (+6.5%) and apartments (+2.9%) particularly standing out. Main drivers — Vision 2030 mega-projects, growing domestic demand, and tourism development. Growth locations — NEOM, The Line, Sindalah: an international premium market is forming.

Saudi Arabia

Purchase, Ownership, Rental, and Sale of Real Estate in Saudi Arabia: Taxes and Fees

Ownership Rights:

Since 2023, foreigners can purchase properties in approved zones (Riyadh, Jeddah, NEOM, Red Sea, etc.) — as individuals or legal entities. Transactions are registered through the Ministry of Justice and Real Estate General Authority.

VAT:

✦ 15% when purchasing from a developer or legal entity
✦ On the secondary market depends on the seller's status, not always applied

Annual Property Tax: None

RETT (Real Estate Transaction Tax): 5% of the value, applies to all transactions

Rental Income Tax:

✦ 15% VAT — if leased by a legal entity registered as a VAT payer
✦ For individuals, withholdings are possible — rates up to 20%, there are 10% options for residents (withholding tax)

Registration: State duty is usually included in RETT, legal services — from 500 to 1,500 USD

Capital Gains Tax: None, but upon sale, RETT 5% is applied again

VAT Refund upon Sale:

Not provided, the developer is allowed to increase the price by 15%, but the buyer does not receive a refund.

Saudi Arabia. Summary

Saudi Arabia is a strategically important and transforming market that opened to foreigners very recently.

It offers access to world-scale mega-projects (NEOM, Red Sea), currency stability, and predictable price growth, but requires high readiness for legal and visa specifics.

ROI:

·         6–8% in rental (in select projects with management model)

·         5–10 years’ capital growth potential

Risk:
Medium-High.

·         Young legal framework, complex entry, high tax burden

·         Regulated visa system, limited number of available zones

Taxes:

·         Upon Purchase: RETT — 5% + VAT — 15% (when purchasing from developer/legal entity) + Registration — from 500 USD

·         On Ownership: no annual property tax, but if the property is vacant — White Land Tax (2.5% of land value) may apply

·         On Rental:
— For companies — 15% VAT;
— For freelancers and individuals — withholding up to 20% possible, often averaging 10–15%

·         Upon Sale: repeated RETT 5%

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