Educational information only, not tax advice. Rules and figures change — confirm your situation with a qualified Saudi Arabia tax professional before filing.
Riyadh, Saudi Arabia · Saudi Arabia · Short-term rental taxes
Short-Term Rental Taxes in Riyadh, Saudi Arabia
Short term rental taxes in Riyadh: Saudi individuals pay no personal income tax on rent, Airbnb adds and remits 15% VAT for unregistered hosts, and non-Saudi residents running a business face 20% income tax.
The 30-Second Answer
- Short-term rental tax in Riyadh is mostly VAT: Airbnb charges guests 15% VAT on the listing price and cleaning fee, and remits it to ZATCA for hosts who are not VAT-registered.
- Saudi nationals are not subject to income tax under the Income Tax Law, so a Saudi owner letting a flat pays no income tax on the rent.
- Non-Saudi residents who conduct business in the Kingdom pay 20% income tax; Saudi and GCC nationals running a licensed business are assessed zakat at 2.5% of the zakat base instead.
- VAT-registered hosts add their VAT number to Airbnb, charge 15% themselves and file VAT returns with ZATCA; separately, hosting guests needs a Ministry of Tourism Private Accommodation Unit licence.
Deductions
What Riyadh STR Hosts Can Deduct
Deductions only matter if you are within income tax (non-Saudi resident doing business) or zakat, or if you are VAT-registered and reclaim input VAT. A Saudi individual with no business registration has no income-tax return to deduct against.
For VAT-registered hosts, keep valid tax invoices: input VAT on costs such as cleaning, furnishings and platform fees can be reclaimed in your VAT return. Income-tax deductions for non-Saudi residents follow ZATCA's income tax rules.
Filing Calendar
Key Dates & Filing Calendar
There is no annual personal income-tax deadline for Saudi individuals. The dates that matter are licensing, VAT registration and — for business owners — the zakat or income tax return.
If you are not VAT-registered, Airbnb handles VAT on your Riyadh bookings. Once you register, tell Airbnb straight away so VAT is not collected twice.
Airbnb — Tax collection in Saudi Arabia (article 4114); ZATCA — VAT registration, Zakat Implementing Regulations; Income Tax Law, Art. 60; Ministry of Tourism
Tax Treatment
Airbnb as Deemed Supplier vs. VAT-Registered Host
With no income tax for Saudi individuals, the big choice in Riyadh is VAT: let Airbnb collect it as the deemed supplier, or register with ZATCA and account for it yourself.
Unregistered Host — Airbnb Collects VAT
Airbnb charges and remits 15% VAT for you
- Airbnb adds 15% VAT to the listing price and cleaning fee and remits it under Saudi Arabia's deemed supplier rules.
- A Saudi individual owes no personal income tax on the rent.
- No VAT returns — but you cannot reclaim VAT on your costs.
- Still needs a Ministry of Tourism Private Accommodation Unit licence before listing.
Registration becomes compulsory once taxable supplies pass SAR 375,000 in 12 months
VAT-Registered Hosting Business
You charge VAT and file with ZATCA
- Add your VAT ID to Airbnb so it stops collecting VAT on your listing.
- Charge 15% VAT on every booking, including direct ones, and file returns with ZATCA.
- Reclaim input VAT on cleaning, furnishings and platform fees.
- Non-Saudi residents doing business pay 20% income tax on profit; Saudi and GCC nationals with a licensed business are assessed zakat at 2.5%.
No upper limit — VAT becomes part of your nightly price
Depreciation
Depreciation for Riyadh STR Properties
Depreciation only matters where there is a tax on profit — income tax for non-Saudi residents doing business, or zakat for a registered business.
| Asset | Typical write-off period | Notes |
|---|---|---|
| Property owned by a Saudi individual | Not applicable | No personal income tax, so there is nothing to depreciate against. |
| Building & furnishings (non-Saudi resident in business) | ZATCA asset groups | Income tax depreciation follows the rates set in the Income Tax Law — confirm the group for each asset. |
| Assets of a zakat-paying business | Via the zakat base | Zakat is assessed at 2.5% of the zakat base for a Hijri year, so asset treatment follows ZATCA's zakat rules rather than a profit write-off. |
Keep purchase invoices and an asset register for furnishings, appliances and fit-out; they also support VAT input claims if you are registered.
Saudi individuals are outside the Income Tax Law, but Real Estate Transaction Tax of 5% of the property's value applies when it changes hands.
VAT & Business Taxes
VAT, Zakat and Income Tax on a Riyadh Rental
Airbnb's Saudi tax page lists VAT only — it collects no separate occupancy tax, lodging tax or tourism levy on Riyadh bookings. The tax on profit depends on who you are.
What applies to a Riyadh vacation rental depends on your VAT status and nationality:
15% VAT on stays; 0% personal income tax for Saudi individuals
Airbnb — Tax collection in Saudi Arabia (article 4114); Income Tax Law, Arts. 2 and 7; ZATCA Zakat Implementing Regulations, Art. 15
| Booking type | Who collects & remits | What it means for your books |
|---|---|---|
| Airbnb stay, host not VAT-registered | Airbnb collects 15% VAT and remits it to ZATCA | Your payout excludes the VAT; record rent net of VAT |
| Airbnb stay, VAT-registered host | You — add your VAT ID on Airbnb and account for VAT yourself | Include the booking in your ZATCA VAT return |
| Booking.com, Gathern or direct booking | You, if VAT-registered | Issue a VAT invoice and keep records for ZATCA |
Nationality matters: Saudi individuals are outside the Income Tax Law, non-Saudi residents conducting business pay 20% income tax, and Saudi or GCC nationals running a licensed business pay zakat (2.5% of the zakat base for a Hijri year).
Platforms
How Airbnb, Booking.com & Gathern Handle Riyadh Taxes
Airbnb tax in Riyadh is handled differently from most countries: Airbnb itself collects 15% VAT on stays for hosts who are not VAT-registered.
| Platform | Reports your income | Collects the local lodging tax | Annual earnings summary |
|---|---|---|---|
| Airbnb | Collects VAT on your bookings as deemed supplier | Yes — 15% VAT on listing price and cleaning fee for unregistered hosts | Earnings and transaction history in the host dashboard |
| Booking.com | Keep your own records for ZATCA | Not on Airbnb's list — confirm VAT handling in your Extranet | Reservation and payout statements in the Extranet |
| Gathern (Saudi platform) | Keep your own records for ZATCA | Confirm in your host terms whether VAT is collected for you | Booking statements in the host app |
| Direct bookings | No third-party report | You — charge 15% VAT if registered | Keep your own ledger and VAT invoices |
Using Multiple Platforms?
Add Airbnb, Booking.com, Gathern and direct income together when you check the SAR 375,000 VAT registration threshold. If you register, give Airbnb your VAT ID so it stops charging VAT on top of yours.
No DAC7 in Saudi Arabia — Deemed Supplier Rules Instead
DAC7 is an EU directive and does not apply in Saudi Arabia. Instead, Airbnb states it collects and remits VAT for unregistered hosts under Saudi Arabia's deemed supplier regime, so ZATCA sees the VAT on those bookings.
Airbnb — Tax collection in Saudi Arabia (article 4114); Airbnb — Where Airbnb collects and remits taxes (article 2509)
Illustrative P&L — Riyadh Apartment (SAR)
Example only: one apartment let 200 nights at SAR 450 (excluding VAT), not VAT-registered, so Airbnb handles the 15% VAT. Shows the same profit for a Saudi individual and a non-Saudi resident taxed on business income. Not tax advice.
Record-Keeping
Stay Audit-Ready: What to Keep and How Long
Even without income tax, Riyadh hosts need records for VAT, zakat or income tax, and for the Ministry of Tourism licence.
| Keep | How long | Why |
|---|---|---|
| Airbnb and other platform payout statements | At least 6 years | Show which bookings carried VAT collected by Airbnb and which you handled |
| VAT invoices issued and received (if registered) | At least 6 years | Support output VAT and input VAT claims in ZATCA returns |
| Private Accommodation Unit licence and renewals | While operating | Proves the unit is licensed for hosting guests |
| Expense invoices and asset register | At least 6 years | Support profit for income tax or zakat and VAT input claims |
ZATCA's basic VAT record-keeping period is six years, extended to 15 years for records relating to immovable capital assets such as property.
Estimator
Short-Term Rental Tax Estimator
Plug in your bookings and costs to see your likely taxable position.
Your Numbers
Total short-term-rental income, before costs.
Allowable running costs, mortgage interest, depreciation and platform fees.
Your top income-tax band, as a percentage.
Estimated tax owed
Income tax on your net rental profit at your marginal rate.
Illustrative estimate. A simplified model to orient you — it is not tax advice. Confirm your situation with a qualified local professional.
Sources & notes
Educational summary based on Airbnb's Saudi tax page, ZATCA, the Income Tax Law and the Ministry of Tourism, checked in September 2026. Amounts in Saudi riyals (SAR). Confirm with ZATCA or a Saudi tax adviser before filing.
- Airbnb Help Center — Tax collection in Saudi Arabia — 15% VAT on listing price and cleaning fee; Airbnb collects for non-registered hosts under the deemed supplier regime. airbnb.com/help/article/4114
- Airbnb Help Center — Where Airbnb collects and remits taxes — Saudi Arabia listed among jurisdictions. airbnb.com/help/article/2509
- ZATCA — VAT Registration for Individuals — Mandatory above SAR 375,000 a year; optional above SAR 187,500. zatca.gov.sa/en/eServices/Pages/eServices-002.aspx
- ZATCA — Guideline on Professional Services under VAT — Records kept six years; 15 years for immovable capital assets. zatca.gov.sa/en/HelpCenter/guidelines/Documents/Guideline-on-Professional-Services-under-VAT-Provisions.pdf
- Bureau of Experts — Income Tax Law — Art. 2 taxpayers incl. resident non-Saudi natural persons conducting business; Art. 7 rate 20%; Art. 60 returns within 120 days. laws.boe.gov.sa/Files/Download/?attId=8b8fa466-1e37-44ca-a876-adbb011146c2
- ZATCA — Implementing Regulations for Zakat Collection — Zakat 2.5% of the zakat base for a Hijri year (Art. 15); returns within 120 days (Art. 102). zatca.gov.sa/en/RulesRegulations/Documents/ZAKAT%20COLLECTION.pdf
- ZATCA — Real Estate Transaction Tax — 5% on real estate transactions. zatca.gov.sa/en/RulesRegulations/Taxes/Pages/RETTRegulation.aspx
- Ministry of Tourism — Private Accommodation Unit licence — Licence to rent out a private accommodation unit. mt.gov.sa/en/eservices/request-to-issue-new-private-tourism-accommodation-facility-permit
Questions
Frequently Asked Questions — Riyadh STR Taxes
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