Planning to buy your dream home or sell some land, and worried about real estate fees that pop up out of nowhere? At Rayash Real Estate, transparency is non-negotiable for us. Buying property isn’t a game — large sums of money are involved, and no one wants to be blindsided at transfer time by “costs they never accounted for.” Whether you’re a first-time buyer in Al Yaqout or a seasoned investor in Obhur, you need to know exactly who pays what. Here, we break down the fees and tax calculations so you can handle your affairs with confidence.
1. Agent Commission: The Cost of Brokerage
This is the real estate office’s fee for the effort it puts in on your behalf (marketing, negotiations, and chasing paperwork until the deal closes).
- What’s the rate? The standard rate in the market and under regulation is 2.5% of the property’s value.
- Who pays it? In the residential market, convention has the buyer paying the commission, unless both parties agree otherwise.
- Watch for the tax: The commission amount is subject to a 15% tax, calculated only on the commission itself, not on the full property value.
Example to make it clear (buying a villa):
- Villa price: SAR 1,000,000
- Agent commission (2.5%): SAR 25,000
- Tax on the commission (15% of SAR 25,000): SAR 3,750
- Total you pay to the agency: SAR 28,750
2. Real Estate Transaction Tax (Replacing VAT)
The government — may it always be strong — updated the system and introduced a lighter tax called the Real Estate Transaction Tax.
- What’s the rate? 5% of the property’s value.
- Who pays it? Regulations state the seller is responsible for remitting it to the Zakat, Tax and Customs Authority (ZATCA) before the transfer.
- The good news (first home): If you’re a Saudi citizen buying your first home, the government exempts you from tax on the first SAR 1,000,000 of the property price.
Example (if you’re buying your first home):
- Villa price: SAR 1,500,000
- Exempt amount: SAR 1,000,000 (tax-free)
- Taxable amount: SAR 500,000 only
- Tax owed: 5% of SAR 500,000 = SAR 25,000
3. Rental Fees (If You Plan to Rent)
If you’re renting an apartment or villa, here are the costs to expect:
- Commission: Usually 2.5% of the first year’s rent (paid once).
- Rental contract fee: SAR 125, typically paid by the landlord for each contract.
Why Pay the Commission Instead of Saving It Yourself?
Some people think, “Why give the agency 2.5%? I’d rather save it myself!” But be careful — that “saving” can end up costing you more. At Rayash Real Estate, this fee buys you real peace of mind:
- We protect you legally: We check the title deeds and make sure the property is clean, with no issues or holds against it.
- We negotiate on your behalf: With our market expertise, we can often bring the property price down by an amount that covers the commission and then some.
- We handle the paperwork for you: Tax invoices, certified checks, and Notary Public appointments — we take care of it all so you don’t have to.
At Rayash Real Estate, there’s nothing done “under the table.” We give you a breakdown of every riyal you’ll pay before we finalize anything.
Browse our property listings in Jeddah or contact us with any questions about the numbers — our team is happy to walk you through everything.
