Do I have to pay VAT on my apartment rent in Saudi Arabia?

Good news for expats renting a home in Saudi Arabia: residential property leases are exempt from VAT. Under Article 30 of the Saudi VAT Implementing Regulations, the supply of residential real estate — including apartments and villas leased for personal living purposes — is exempt from the standard 15% VAT rate.

This means your landlord should not be charging you VAT on your monthly or annual rent payments for a residential property. If your landlord is adding VAT to a residential lease, you should question this and ask them to confirm the property classification, as the exemption is a legal entitlement, not a discretionary one.

Note that this exemption applies specifically to residential real estate. If you are renting commercial premises — such as an office or retail space — VAT at 15% will apply. Always check your lease agreement to confirm whether the property is classified as residential or commercial, and ensure any tax treatment is consistent with that classification.