Property TypesParking Space
Synonyms: Parking Bay، Car Park Space، Garage، Parking Lot
Last updated: 2026-09-25
Short Definition
A parking space is a defined space for parking a vehicle; it may be open, shaded, in a basement or in a multi-storey car park, and may belong to a residential or commercial unit or be owned and let independently.
Overview
A parking space is a defined space for parking a vehicle; it may be open, shaded, in a basement or in a multi-storey car park, and may belong to a residential or commercial unit or be owned and let independently.
In Saudi Arabia, municipal requirements usually require a building to provide a number of parking spaces proportionate to its use and area when the building permit is issued. In jointly owned properties, the Law of Ownership, Partition and Management of Real Estate Units treats ‘parking’ as a common part owned by all owners, while also allowing a garage to be a separately titled unit that can be owned and disposed of independently. For tax purposes, garages that are a permanent part of a residential property fall within its definition in the VAT regulations, so their rent is exempt together with the home; a parking space let separately from any dwelling is not covered by the residential lease exemption and is, in principle, standard-rated at 15% when the landlord is VAT-registered.
In practice, in congested cities a parking space is an asset that raises a unit's value and rent, and it may be sold or let separately in towers and commercial buildings. The sale or lease contract should state whether the space is exclusive to the unit or shared, and its number and location, because a space that forms part of the common parts gives no exclusive right of use unless this is provided for in the partition or in the owners' association bylaws.
⚖️ Legal Basis
Article 1 of the Law of Ownership, Partition and Management of Real Estate Units issued by Royal Decree No. (M/85) dated 2/7/1441H defines a separately titled unit to include a garage and lists parking among the common parts; Article 7 attaches each owner's share in the common parts to their unit in all dispositions; and Article 9 prohibits using common parts other than for their designated purpose. Paragraph 4 of Article 30 of the VAT Implementing Regulations states that residential real estate includes garages that are a permanent part of the property. Leases are governed by the Civil Transactions Law issued by Royal Decree No. (M/191) dated 29/11/1444H.
💡 Practical Example
A buyer of a SAR 780,000 flat in a separately titled building in Jeddah with 12 flats but only 10 parking spaces is asked by the seller for an extra SAR 40,000 for a ‘dedicated space’. Reviewing the disclosure statement and plan, he finds the spaces registered as common parts, so the seller cannot sell a specific space. The parties agree that the SAR 40,000 will be paid only if the owners' association general assembly adopts, in its bylaws, the allocation of space no. 7 to the flat. In a neighbouring office building, an owner lets a standalone space to a company for SAR 6,000 a year; being VAT-registered, he adds 15% (SAR 900), for a total of SAR 6,900.
⚠️ Common Mistakes
- ✗Paying for a ‘dedicated space’ without checking that it is a separately titled unit or allocated to the unit in the owners' association bylaws.
- ✗Assuming the parking mentioned in an advert is automatically included in the sale or lease without stating it and its number in the contract.
- ✗Using shared parking for storage or converting it into rooms, although the law prohibits using common parts other than for their designated purpose.
- ✗Treating the lease of a standalone parking space like an exempt residential lease, when the exemption covers garages attached to a home.
- ✗Ignoring the number of spaces relative to the number of units when buying in apartment buildings, which causes daily disputes between residents.
🌍 International Differences
In the UAE, parking spaces in towers are usually allocated to specific units and recorded in the title deed. In Turkey, a space may be registered as a shared share or as an annex to the unit in the land registry. In many European cities, parking spaces are sold with separate titles at high prices. The common thread is that a parking right must be documented in the title or owners' rules, not in an advert.
FAQs
Does a flat buyer own a private parking space in a separately titled building?▾
Not necessarily. Parking is, in principle, a common part owned by all owners. A space has an owner or exclusive user only if it is partitioned as a separate unit or allocated to the unit in the owners' association bylaws.
Can a parking space have its own title deed?▾
Yes. The real estate units law defines a separately titled unit to include a garage, so it can be partitioned, owned and disposed of independently under the partition procedures approved by the Real Estate General Authority.
Is parking rent subject to VAT?▾
If the garage is a permanent part of the leased home, it falls within the definition of residential real estate and is exempt with it. A space let separately from any dwelling is not covered by the residential exemption and is, in principle, taxed at 15% when the landlord is VAT-registered.
Can a resident reserve a shared parking space with barriers or locks?▾
Not without regulation by the owners' association, because the law prohibits obstructing common parts in a way that affects their designated use. The association can regulate the allocation of spaces in its bylaws.
How should I check parking before buying a flat?▾
Ask for the disclosure statement and approved plan, compare the number of spaces with the number of units, and check whether the space is partitioned, allocated or shared. This should be stated expressly in the sale contract.
