TaxSavvySA

First home support for Saudi buyer

I am buying my first home. Does the seller still pay 5 percent?

The situation

For a citizen's first home, the State bears RETT up to SAR 1,000,000 when buying from a licensed developer, and SAR 850,000 in other cases.

The law

  • Royal Order on first home support (RETT borne by the State): State bears RETT on a citizen's first home up to SAR 1,000,000 (developer) or SAR 850,000

What it means for you

The buyer gets a certificate from the housing ministry and gives it to the seller, who uses the ZATCA service. Example: home SAR 1,200,000 from a developer: tax on SAR 200,000 above the limit = SAR 10,000.

What to do

  1. Get eligibility certificate.
  2. Give it to seller.
  3. Seller files on ZATCA.

We can do this for youReal Estate Transaction Tax on a property sale: 5 percent RETT, exemptions and first home support: SAR 1,500

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