Saudis warned of 'hidden cost' of overseas real estate investments: taxes

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Flush with oil revenue, Saudi Arabia’s rulers don’t feel the need to assess property taxes on homeowners or owners of developed property. So it may come as a surprise to Saudis looking to buy property in the U.S., United Kingdom or other countries overseas, that there can be certain “hidden costs” — namely, property taxes.

The Jeddah Chamber of Commerce and Industry has asked the Ministry of Commerce and Industry to “take strong measures to put an end to fraudulent activities by some real estate agencies that scam Saudis into buying housing units or plots of land abroad without making them aware of hidden costs,” the Saudi Gazette reports.

“These plots of land can be sold to various individuals at any one time and might be subject to taxes that clients are not aware of,” Abdullah Al-Ahmari, who heads the chamber’s real estate committee, told the newspaper. “These offers mainly get promoted on social media and some of these companies also have their own websites.” Source: saudigazette.com.sa