Saudi Arabia – Property Letting

How does the property letting process work in Saudi Arabia?

Saudi Arabia’s rental market operates within a highly structured, government-led digital framework that sets it apart from many other countries. There is no single statute bearing the title “Landlord-Tenant Law.” Instead, the relationship between those who own and those who rent property is shaped by several overlapping legal sources, with the Real Estate General Authority (REGA) acting as the primary regulator across the entire real estate sector, including leasing activity. In contrast to systems where a handshake or verbal arrangement can carry legal weight, every tenancy in Saudi Arabia must be formally documented.

At the heart of this system sits Ejar: a comprehensive electronic platform built to regulate the rental sector, protect the interests of all parties — landlords, tenants, and real estate brokers alike — and provide digital solutions that improve market efficiency and transparency. By fostering trust among participants and encouraging investment, the platform plays a central role in the modernisation of Saudi Arabia’s property landscape.

Ejar is the Kingdom’s official national tenancy services portal. It standardises lease documentation through a unified contract format, verifies the identities of all parties, and creates a record of each lease that courts and public bodies can act upon. What makes this particularly significant is that once a lease has been registered and certified through Ejar, it acquires the status of an executive document — meaning it can be enforced directly before the Ministry of Justice and the courts responsible for enforcement.

Before listing a property for rent, landlords must have the relevant proof of ownership in place. Properties are typically marketed through real estate portals, agencies, and online classified platforms. Through Ejar, the landlord-tenant relationship is formally documented and controlled, with authenticated leases linked to real estate offices across the country. The platform also provides landlords with access to prospective tenants’ rental payment histories — including records of on-time payments, delays, and defaults — allowing for more informed tenant selection before any agreement is signed.

Every tenancy contract must be entered into the Ejar system, a requirement that gives it full legal standing and eliminates informal arrangements from the market. This promotes credibility and transparency throughout the sector. Registration can be completed by either the landlord or the tenant, and once the contract has been submitted, the other party has a 60-day window to raise any objections to the recorded details. If no objections are lodged within that period, the information on record is treated as accurate and officially confirmed.

Since 15 January 2024, rent for residential properties must be paid digitally via Ejar-approved channels — specifically Mada or SADAD. At the time of writing, this digital payment requirement does not extend to commercial leases. Landlords should account for this when structuring their letting arrangements and make sure the agreed payment method is explicitly set out within the tenancy contract.

What types of rental arrangements are available in Saudi Arabia — long-term, short-term, and holiday lets?

Saudi Arabia supports both residential and commercial letting, as well as shorter-term arrangements, though the regulatory regime applies in different ways depending on how long the contract runs. The most common model is a fixed-term lease — typically annual — registered through Ejar.

The regulatory framework encompasses both residential and commercial contracts. To accommodate the particular nature of short-term rentals, the 2025 regulatory provisions apply only to contracts with a duration exceeding three months. Leases of three months or shorter therefore fall outside the automatic renewal rules and certain other 2025 provisions — though landlords operating in this space must still comply with any applicable local licensing obligations and tax requirements.

Short-term and holiday letting platforms — including Airbnb and local alternatives — are active in Saudi Arabia, particularly in cities with growing tourism and near major attractions. However, the Premium Residency (Real Estate Owner Category) stipulates that the property must be used for residential purposes only, with no commercial use or short-term letting permitted. Landlords who acquired property under this route must therefore be especially careful about operating in the short-term rental space, as doing so could put their residency status at risk.

As of early 2026, short-term rental income received by individuals is not subject to personal income tax in Saudi Arabia, given that no such tax exists for individuals in the Kingdom. That said, cross-border arrangements involving Saudi-based business payers and non-resident recipients may engage withholding tax rules depending on how the payment flows are structured. Anyone intending to operate a short-term or holiday let should seek tailored legal advice and check with the relevant municipality, as regulatory oversight of platforms such as Airbnb continues to develop in Saudi Arabia.

What rental income can landlords expect in Saudi Arabia, and how are rates set?

Rental pricing in Saudi Arabia is principally a matter of negotiation between landlord and tenant at the point of contract — there is no government-administered rent schedule dictating what a property must fetch. However, major regulatory controls introduced in 2025 now impose caps or freezes on rental values in certain areas, with Riyadh subject to the most significant restrictions.

On 25 September 2025, Saudi Arabia brought into force the Regulatory Provisions for the Rental Relationship, enacted by Royal Decree and a Council of Ministers resolution. Under these provisions, all residential and commercial leases — whether pre-existing or newly concluded — within Riyadh’s urban boundaries are subject to a five-year freeze on annual rent increases, taking effect from 25 September 2025.

For properties in Riyadh that were previously rented out but are currently vacant, the permissible rent cannot exceed the figure recorded in the most recent Ejar contract. For properties entering the Riyadh rental market for the first time, the rent is determined by mutual agreement — but that agreed figure then becomes the ceiling for the entire five-year freeze period. Landlords entering this market for the first time should therefore negotiate the initial rent with this long-term constraint in mind.

Outside of Riyadh, landlords are permitted to seek a rent adjustment at renewal — but this is not an automatic right. A formal application must be submitted via the Ejar platform, and the tenant must give their explicit consent to any proposed change. If a tenant declines a proposed increase, the contract will not renew automatically on the new terms, and continued occupation requires both parties to agree on fresh terms.

Landlords may challenge the rental value recorded in new contracts (as opposed to existing ones) in specified circumstances: where the property underwent substantial structural renovation that materially affects its rental value, where the most recent contract was signed before 2024, or in other situations that REGA may determine and for which it will issue guidance. REGA also retains the power to extend similar restrictions to other cities or districts, subject to approval by the Council of Economic and Development Affairs. For the most up-to-date position in any specific city or region, always consult the REGA official website and the Ejar platform.

Do landlords need to provide a furnished or unfurnished property in Saudi Arabia?

Saudi Arabian law does not impose any blanket obligation on residential landlords to let their properties either furnished or unfurnished. Both models are common across the market, and the decision comes down to commercial considerations — the type of property, its location, and the kind of tenant the landlord is targeting — rather than any statutory requirement.

Furnished apartments and villas typically attract higher rents and are particularly popular with short-term or corporate tenants, especially in the expat-heavy districts of Riyadh, Jeddah, and Dammam. Unfurnished properties are more commonly sought by families settling in for the longer term, who prefer to bring their own belongings and personalise the space. Whichever approach is taken, the Ejar tenancy agreement should include a clear description of the property’s condition at handover, along with an inventory of any fixtures, appliances, or furniture included, so that the position is unambiguous when the tenancy ends.

Landlords are obliged to deliver the property in a state appropriate for its intended use — habitable if residential, functional if commercial. Beyond this fundamental baseline, there is no formal classification system for furnished properties that alters their tax treatment in Saudi Arabia. However, furnished properties let on a short-term basis may attract different operational licensing requirements from local authorities, so landlords should verify the position with the relevant municipality before proceeding. Thorough documentation of the property’s condition and contents at the start of any tenancy — ideally supported by photographs — is strongly advisable and can prove invaluable if deposit deductions become a point of contention later on.

Do you need a licence or registration to let a property in Saudi Arabia?

For any landlord letting residential or commercial property in Saudi Arabia — whether a Saudi national, a resident expat, or a non-resident foreign owner — registering the tenancy contract on the Ejar platform is mandatory. This is the cornerstone compliance obligation for landlords operating in the Kingdom, and failure to fulfil it can result in financial penalties and leaves both parties exposed without legal recourse.

Every rental agreement must be formally recorded on Ejar. Either the landlord or the tenant may initiate the registration, and if a landlord declines to register, the tenant has the right to do so independently. Tenants can also submit a formal complaint to REGA if a landlord refuses to engage with the registration process.

For individual private landlords, completing the Ejar registration is the primary compliance requirement. However, those who use real estate brokers or property management companies should be aware that those third parties must themselves hold a current licence — completing an approved training course for qualifying real estate brokers is a prerequisite before they are entitled to conclude rental contracts.

Landlords operating at a commercial scale — such as those letting a portfolio of properties or running a short-term rental business — may need a commercial registration and, in some cases, a specific real estate activity licence. Requirements can vary by municipality, and the regulatory landscape continues to evolve. Landlords should always verify current obligations directly with REGA and their local municipality before commencing any letting activity.

How do you obtain a landlord licence or register as a landlord in Saudi Arabia?

For private individual landlords, the principal registration requirement is to create an account on the Ejar platform and record each tenancy contract through it. The process is entirely electronic and integrated with other government systems. The standard steps are as follows:

1. Confirm property ownership: Make sure your property is entered in the national real estate registry. REGA is the designated authority for all foreign ownership matters and requires mandatory registration of any transaction involving real rights by or to a non-Saudi. Any action relating to property ownership will be valid only upon registration with the Real Estate Registry.
2. Access the Ejar platform: Go to ejar.sa and sign in using your National ID (for Saudi citizens and residents) or your Iqama number (for resident expats). Non-resident foreign owners may need to act through an authorised agent or property manager who holds a valid Iqama.
3. Agree terms with the tenant: Finalise the rent amount, payment schedule, and contract duration with the prospective tenant. Gather the tenant’s Iqama number and registered mobile number, as these are needed to initiate the contract on Ejar.
4. Register the contract on Ejar: From the main menu, navigate to the Contracts section and select Register a New Residential Rental Contract — this brings up the registration screen. Fill in all required details, including the property address (which must be registered with the National Address service provided by Saudi Post), the agreed rent, payment terms, and contract length.
5. Pay the registration fee: Authentication fees are payable by the landlord through the Ejar platform. As of 2025, the fees are SAR 125 for a residential lease in the first year and SAR 250 for annual renewal; for commercial leases, the fees are SAR 200 in the first year and SAR 400 for annual renewal.
6. Tenant accepts the contract: The tenant receives an SMS notification from Ejar prompting them to proceed. They must log into their own Ejar account and formally accept the contract by entering a verification code sent to their registered mobile number.
7. Contract activation: Once both parties have approved the contract, it is certified without delay. From that point, the lease functions as an executive document linked to the Ministry of Justice and the relevant government agencies.

Commercial property managers and brokerage firms are required to hold a separate real estate brokerage licence issued by REGA. Business licence fees and procedures are updated periodically — always refer to the REGA website for the most current requirements.

What are the rules around deposits in Saudi Arabia?

Security deposits are a standard feature of the Saudi rental market and are agreed between landlord and tenant at the time of signing. Current regulations do not impose a statutory ceiling on deposit amounts, and unlike systems such as the UK’s Tenancy Deposit Protection scheme or Ireland’s Residential Tenancies Board deposit protection arrangements, Saudi Arabia does not yet operate a centralised, government-backed deposit protection mechanism.

In practice, deposits are typically set at one to two months’ rent, though this reflects market convention rather than any legal rule. The amount of the deposit, the circumstances under which deductions may be made, and the timeframe for its return must all be clearly set out in the Ejar tenancy agreement. To safeguard their position, both landlords and tenants should ensure the deposit terms are explicitly recorded in the Ejar contract, document the property’s condition thoroughly at the start and end of the tenancy, and retain records of all communications relating to repairs and the handover of the property.

Deductions from the deposit are generally permissible for damage exceeding fair wear and tear, unpaid rent, or violations of the lease terms, provided everything is properly documented. The deposit should ordinarily be returned without undue delay once the tenancy has concluded and the property has been inspected. Disputes about deposit deductions or returns can be taken to REGA’s reconciliation services or the Saudi Real Estate Arbitration Centre, both of which are designed to provide structured and accessible routes for resolving property-related disagreements. Given that this area of regulation may be subject to change, always check with REGA or a qualified local legal adviser for the most current rules on deposits.

Who is responsible for maintenance and repairs in Saudi Arabia?

Under Saudi Arabia’s regulatory framework, the primary duty for structural matters, safety-related issues, and significant repairs falls squarely on the landlord. Tenants, by contrast, are generally expected to take care of routine upkeep and minor repairs that arise from ordinary day-to-day use of the property.

A landlord must hand over the property in a condition fit for its intended purpose and must address any major or structural defects that compromise the safety or usability of the premises, as well as meeting any applicable regulatory standards for the type of property or use. Where serious defects prevent a tenant from using the property as agreed, this can give rise to valid demands for repairs, a reduction in rent, or — in the most serious cases — termination or non-renewal of the lease.

Tenants are entitled to occupy a property that is safe and maintained to a reasonable standard. The responsibility for significant repairs and upkeep rests with the landlord. Tenancy contracts should make clear all the terms of the arrangement, including rent, payment schedules, and the division of maintenance obligations.

Saudi regulations and court practice do not lay down an exhaustive list covering every conceivable maintenance scenario, but most leases reflect a general understanding of how responsibilities are allocated — the actual contract should always be consulted, as parties may agree to divide certain tasks differently. This approach broadly mirrors that found in many civil law systems, where the landlord’s duty to keep the property in a habitable condition is treated as an implied statutory obligation. Unlike some jurisdictions — such as England and Wales, where the Homes (Fitness for Human Habitation) Act 2018 specifies detailed minimum standards — Saudi Arabia relies more on the terms of the Ejar contract, REGA’s regulatory provisions, and overarching principles drawn from the Civil Transactions Law.

Landlords who address genuine emergencies promptly reduce their legal exposure and help preserve the condition and value of their property. Tenants who handle minor issues themselves and report more serious problems in a timely manner help maintain a cooperative relationship with their landlord.

How are letting agents used in Saudi Arabia, and what do they charge?

Letting agents and property management companies occupy a significant role in Saudi Arabia’s rental market, particularly for landlords based outside the Kingdom who are unable to oversee their property in person. Agents commonly offer a full suite of services: marketing the property, vetting prospective tenants, drafting the contract, completing Ejar registration, collecting rent, coordinating maintenance, and managing disputes when they arise.

Working through a licensed agent on the Ejar platform gives landlords access to key benefits, including the ability to conclude leases electronically using the Standard Contract — which carries the status of an executive instrument certified by the Ministry of Justice — and electronic connectivity with a range of government bodies, including the National Information Center, the Ministry of Commerce and Investment, and the Ministry of Justice.

Agent fees in Saudi Arabia are most commonly expressed as a percentage of the annual rent, with rates typically falling in the range of 2% to 2.5%, or alternatively as a flat fee broadly equivalent to half a month’s to one month’s rent. Unlike the UK, where the Tenant Fees Act 2019 prohibits landlords from passing most letting agent charges on to tenants, Saudi Arabia currently imposes no equivalent blanket restriction. Platform fees remain the landlord’s responsibility even when initially handled through a brokerage, and any additional agreed service charges must be explicitly included in the contract.

As of 2025, there are no nationally regulated fee caps for letting agents, and market rates continue to apply. Landlords should verify the latest agent fees and any regulated fee structures with REGA or the relevant consumer authority, as this area is likely to evolve as the rental market matures under Vision 2030 reforms. Non-resident landlords are especially encouraged to engage a reputable, REGA-licensed property management company to maintain ongoing compliance with Ejar registration, digital rent payment rules, and maintenance obligations.

What taxes apply to rental income in Saudi Arabia?

Saudi Arabia’s tax treatment of rental income represents one of its most compelling attractions for property investors — whether resident in the Kingdom or based elsewhere. The position for individual landlords is considerably more favourable than in the vast majority of other countries.

As of early 2026, individual foreign owners of Saudi property typically face an effective tax rate of 0% on their rental income. The Kingdom imposes no personal income tax on individuals, and residential leasing is generally treated as exempt from VAT under guidance issued by ZATCA. The overall tax burden for individual landlords is therefore substantially lighter than would be the case in most other jurisdictions.

Foreign owners do not face a specific filing or withholding obligation on rental income at the individual level, but they should ensure their lease is properly registered through Ejar and that all documentation is in good order in case their circumstances change — for example, if they move to a corporate ownership structure. This contrasts starkly with markets such as France, Spain, or Australia, where non-resident landlords are routinely subject to mandatory withholding tax on rental income remitted to overseas accounts.

The position becomes more involved where rental income is received through a corporate entity. Income flowing through a company structure is subject to corporate tax at a rate of 20% (as of 2025), and a Real Estate Transaction Tax (RETT) of 5% applies to all property transfers. Landlords holding property through a company should take specialist tax advice from a qualified local adviser and engage directly with the Zakat, Tax and Customs Authority (ZATCA).

ZATCA’s withholding tax guidance addresses payments made to parties in the Kingdom, including royalties and fees for the rental of both moveable and immovable property. Non-resident landlords who receive rent from Saudi-based corporate payers — as opposed to private individuals — should confirm their withholding tax exposure with ZATCA and a tax professional, as the rules can be triggered depending on how payments are structured. Saudi Arabia also does not impose a conventional annual property tax on residential homeowners, though a White Land Tax of approximately 2.5% of assessed value can apply to undeveloped land.

What are the rules around ending a tenancy or evicting a tenant in Saudi Arabia?

The 2025 regulatory framework has pushed Saudi Arabia’s tenancy system firmly in the direction of tenant protection, particularly in Riyadh. Landlords considering entering this market should familiarise themselves thoroughly with these rules, as the new automatic renewal provisions significantly constrain their ability to reclaim possession of a property.

Nationwide, rental contracts renew automatically at the end of their term unless either party serves written notice of non-renewal at least 60 days before expiry. This applies to all residential and commercial leases with a duration exceeding three months.

For landlords of properties located within Riyadh’s urban boundaries, the rules are more restrictive than elsewhere in the Kingdom. In Riyadh, a landlord may prevent automatic renewal only by notifying the tenant at least 60 days before the contract expires, and only where one of the following grounds applies: the tenant has failed to pay rent; there are structural defects in the unit affecting safety, confirmed by a technical report approved by the relevant government authority; the landlord or a first-degree relative requires the property for personal residential use; or other grounds as determined by REGA.

In practice, many Riyadh leases will renew automatically at the existing rent unless one of those recognised grounds is in play. A landlord’s preference for a higher-paying tenant does not, on its own, constitute valid grounds for refusing renewal during the protected period.

Outside Riyadh, landlords retain wider — though still notice-bound — rights to bring a tenancy to an end, provided they give the required 60-day notice before the contract expires. Where a tenant is in breach of the lease — for example, through non-payment of rent — landlords should pursue eviction through the enforcement courts connected to the Ejar platform. Self-help measures such as changing locks, cutting off utilities, or physically removing a tenant’s belongings carry serious legal risk and must not be attempted. Landlords who breach the regulations face fines of up to 12 months’ rent for the property in question, alongside an obligation to remedy the breach and pay compensation to affected parties.

What should expat landlords know about managing property remotely in Saudi Arabia?

Overseeing a Saudi property from abroad is both legally and practically achievable, but it demands thorough preparation and the right professional infrastructure. Ejar’s digital-first design aids remote management, but certain steps — particularly those involving contract registration and enforcement proceedings — typically require the involvement of a local representative who is physically present in the Kingdom.

Non-resident foreign owners should appoint a local property management company or grant a properly constituted power of attorney to a trusted representative based in Saudi Arabia. This is especially important because interacting with Ejar, handling maintenance matters, and engaging with enforcement or dispute resolution procedures generally requires someone present in the Kingdom who holds a valid Iqama or Saudi national ID. Any power of attorney should be carefully drafted, notarised, and legalised as required.

Overseas owners should ensure their property is entered in the official national real estate registry to confirm and protect their legal rights and maintain proper documentation of ownership. If the intention is to rent out the property, compliance with Ejar’s lease registration requirements should be addressed from the very beginning.

As of early 2026, the effective tax rate on rental income for individual foreign owners remains at 0%, and there is no specific personal filing or withholding obligation for individual landlords. However, where rent is received via a corporate payer or managed through a business structure, withholding tax obligations may arise — this should be clarified with a ZATCA-registered tax adviser before payment arrangements are finalised.

There are currently no restrictions on repatriating rental income from Saudi Arabia for individual landlords, but this remains subject to regulations issued by the Saudi Arabian Monetary Authority (SAMA) and any applicable currency exchange requirements. Non-resident landlords should confirm the current position with SAMA and their bank before making any transfers. Engaging a reputable, REGA-licensed property management company from the outset is the most dependable approach to staying compliant as the Kingdom’s regulatory landscape continues to evolve.

Frequently asked questions about letting property in Saudi Arabia

Can a non-resident own and let property in Saudi Arabia?

Saudi Arabia passed the landmark “Law of Real Estate Ownership by Non-Saudis” in July 2025, which came into force in January 2026, opening the majority of Saudi cities to foreign buyers and permitting both individuals and legal entities to own residential and commercial property. Non-residents may now own and let property, subject to zoning requirements, REGA registration obligations, and Ejar contract rules. Always check the current list of designated zones with REGA, as certain areas may remain off-limits.

Is Ejar registration really mandatory, and what happens if I don’t register?

Registration of every tenancy agreement on the Ejar platform is a legal requirement, and doing so is what grants the contract its full legal validity and eliminates undocumented arrangements. Contracts that are not registered offer neither party any legal protection. A landlord who refuses to register risks having the tenant file a complaint directly with REGA, and those found to be in breach face fines of up to 12 months’ rent, an obligation to correct the breach, and potential liability for compensation to affected parties.

Can I increase rent on my Saudi property each year?

For properties within Riyadh’s urban boundaries, annual rent increases have been suspended for a five-year period covering both pre-existing and new contracts, with effect from 25 September 2025. For landlords outside Riyadh, a rent adjustment can be sought at renewal, but only through a formal application submitted via Ejar and with the tenant’s explicit agreement. The current position with REGA should always be checked, as the freeze may be extended to additional cities.

Do I need to use a letting agent to rent out my property in Saudi Arabia?

Individual private landlords in Saudi Arabia are under no legal obligation to use a letting agent. Tenancy contracts can be registered directly on the Ejar platform by the landlord. That said, for landlords living outside the Kingdom, engaging a REGA-licensed property management company is strongly recommended to ensure continued compliance with registration requirements, tenant management, and maintenance oversight during the landlord’s absence.

What taxes will I pay on rental income from my Saudi property?

As of early 2026, individual foreign landlords typically pay 0% tax on their rental income from Saudi property, given that the Kingdom levies no personal income tax and residential leasing is generally VAT-exempt under ZATCA guidance. Where income flows through a corporate entity, a 20% corporate tax rate applies as of 2025. Always consult ZATCA and a local tax adviser regarding your specific circumstances, particularly where income is received through a business structure.

Can my tenant refuse to leave at the end of the lease?

All residential and commercial contracts lasting more than three months are automatically renewed unless one party gives the other written notice of non-renewal at least 60 days before the contract expires. In Riyadh, landlords can prevent renewal only on specified grounds — such as tenant non-payment, structural safety defects, or a requirement for the landlord’s own residential use. Outside Riyadh, landlords retain broader rights to end a tenancy but must still observe the notice requirements.

Are there any restrictions on letting property in Makkah or Madinah?

Non-Muslims are completely prohibited from owning property in Makkah and Madinah, which significantly limits investment options in these major urban centres. A non-Saudi individual who is lawfully resident in the Kingdom may own one residential property outside the designated Geographical Zones, but in Makkah and Madinah, ownership by non-Saudis is only permitted for those who are Muslim. If you are uncertain about your eligibility, seek advice from REGA before taking any steps.

How do I handle a rental dispute with a tenant in Saudi Arabia?

Disputes arising from contracts registered on Ejar can be referred to REGA’s reconciliation services or the Saudi Real Estate Arbitration Centre. Where a lease has been authenticated on Ejar, landlords can access the platform’s enforcement services and pursue claims through the enforcement court. Any challenge to a regulatory decision must be lodged before the competent judicial body within 30 days. Always obtain legal advice before initiating enforcement action, and under no circumstances should landlords attempt self-help remedies such as changing locks or disconnecting utilities.