Money and growing your Saudi career

This last lesson is about money: how to calculate what you earn, what comes off it, and how to grow. It ends with a checklist to use before you start.

Commission maths

The law sets the default commission at 2.5% of the sale price, or of the first year’s rent, unless agreed otherwise in writing. Here are five cases.

1. Sale, one side. A villa sells for SAR 2,400,000. You signed the seller at the default rate. 2,400,000 × 2.5% = SAR 60,000, paid by the seller.
2. Sale, both sides, one contract. A SAR 2,000,000 home, one contract covering buyer and seller, no rate set. The total is capped at SAR 50,000 and split equally: SAR 25,000 each.
3. Two contracts, one rate. A SAR 3,000,000 sale. The seller’s contract sets 1.5%, the buyer’s sets none. The total cap is SAR 75,000. The seller pays 1.5% (SAR 45,000) and the buyer pays the rest, 1% (SAR 30,000).
4. Lease. A two-year lease at SAR 85,000 a year. Only the first year counts: 85,000 × 2.5% = SAR 2,125.
5. Failed deal. A buyer pays the maximum written down payment of 5% on SAR 2,000,000, which is SAR 100,000, then walks away and the seller keeps it. If your contract is silent, you get 25%: SAR 25,000.

From the agency’s fee to your pay

The agency earns the commission. Your share depends on your employment contract, which the law does not regulate. As an example only: if your contract gives you 40% and the agency earns SAR 45,000 on a SAR 1,800,000 sale, you receive 45,000 × 40% = SAR 18,000. Check whether your share is calculated before or after VAT and any team splits. Run your own numbers with the commission calculator.

Tax and social insurance on your income

• Income tax. PwC states that Saudi Arabia has no individual income tax scheme, and employment income earned in Saudi Arabia is not taxed. Income from a business is taxed differently, so if you set up your own establishment, see an accountant.
• GOSI. As a Saudi employee, you contribute 9.75% (9% social insurance and 0.75% unemployment insurance), and your employer pays 11.75%. The base is your basic salary plus housing, capped at SAR 45,000 a month. Ask your employer how your pay is declared.
• VAT. Brokerage is a service. Your agency decides how it invoices VAT on the fee, at the standard 15%.

How to choose an agency

Ask these questions before you sign:

1. Is the firm’s establishment FAL licence valid, and will I be registered under it?
2. Is there a base salary, a commission share, or both? What are the targets and when is commission paid?
3. Who provides leads, listings and the budget for advertising licences and portals?
4. What training and support do new brokers get in the first three months?
5. How does the firm handle compliance: contracts, ad licences and anti-money laundering checks?

Compare firms on CloserPass agencies and open roles on jobs in Saudi Arabia.

Growing after year one

• Renew on time. File within the 60 days before your licence expires. Current brokers face no new requirements at renewal, only the fee.
• Specialise. Move from rentals to sales, or into off-plan, land or commercial property.
• Study further. REGA and the Institute of Public Administration offer an optional Diploma in Real Estate Regulations and Legislation, and REGA runs training programmes in real estate consultancy and analytics.
• Lead a team or open a firm. An establishment needs a commercial registration that includes brokerage, and its manager must complete the qualification programme.

Before you start: final checklist

• I know that brokerage and property marketing jobs are reserved for Saudi nationals, and I have checked my own situation.
• I have completed the three remote courses and passed the in-person exam with at least 70%.
• I hold an active FAL licence and know my renewal date.
• I never work without a written brokerage contract deposited on REGA’s platform.
• I get an advertising licence for every listing, on every channel.
• I register every lease on Ejar and respect the Riyadh rent freeze.
• I check every off-plan project on Wafi before promoting it.
• I complete due diligence before accepting funds and report suspicions to SAFIU.
• I can explain RETT, the non-Saudi fee and my commission to any client.
• I check the official source before I act, because rules move fast.

You have finished the course. Now test what you have learned: take the final quiz.