Selling shares of a real estate company
We sell shares in a company that owns land. RETT?
The situation
RETT can apply to transfers of real estate rich entities as defined for RETT. A share sale is therefore not automatically outside RETT.
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
RETT reaches transfers of interests in real estate rich entities as defined in the RETT rules, so a share sale is not automatically outside the tax. Check the definition against the company's assets before signing, and declare if it applies.
What to do
- Check definition.
- Declare if needed.
- Pay.
We can do this for youReal Estate Transaction Tax on a property sale: 5 percent RETT, exemptions and first home support: SAR 1,500