TaxSavvySA

RETT on selling an apartment

Selling my flat in Jeddah for SAR 900,000. How much tax?

The situation

Real Estate Transaction Tax is 5 percent of the property value, paid by the seller before or at notarisation.

The law

  • Real Estate Transaction Tax Implementing Regulations (from 4 October 2020): 5 percent of the value of a real estate disposal, paid by the seller before or at notarisation

What it means for you

Example: SAR 900,000 x 5 percent = SAR 45,000. The value is the agreed price but not less than market value. VAT does not apply to the sale because RETT replaced it. If the buyer is a Saudi first-home buyer, the State may bear the tax up to the set limit.

What to do

  1. Agree the price.
  2. Check buyer first home status.
  3. File and pay before notarisation.

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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