Real Estate Transaction Tax on a property sale: 5 percent RETT, exemptions and first home support

Selling property? We check if 5 percent RETT applies or an exemption fits, work out the value at no less than market value, file the declaration on ZATCA and make sure the tax is paid before notarisation so the deal is not held up.

SAR 1,500Per transaction

For: Sellers of land, villas, apartments, offices and shops in Saudi Arabia, including companies, investors and expats who own property, and buyers using first home support.

What we need from you

Title deed
Identifies the property
Sale agreement and agreed price
Tax base, not below market value
Seller and buyer IDs or CRs
Declaration
Relationship between parties
Family gift exemption
First home certificate from the housing ministry (if buyer eligible)
State bears the tax
Valuation report if price below market
Supports the value

What we discuss

Is it a sale, gift, inheritance, in-kind contribution or lease over 50 years?
Decides taxable or exempt
Is the buyer a Saudi buying a first home?
State may bear the tax up to the limit
Is the agreed price below market value?
Tax is on the higher of the two
Is this a commercial lease instead of a sale?
Commercial leases under 50 years stay under VAT

What we file

Compute RETT
Example: villa sale SAR 1,800,000 x 5% = SAR 90,000 payable by the seller
File RETT declaration and pay
Apply first home support

What you get

RETT payment receipt
Exemption memo if any
Post-sale checklist

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 Source
RETT Implementing Regulations, exemptions: Exemptions include inheritance, family gifts without gain, in-kind contributions held 5 years and others Source
RETT Implementing Regulations, penalties: Late payment 5 percent per month; non-disclosure fine from SAR 10,000 up to the tax value Source
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 Source

Questions people ask

Online payment in SAR is not open yet. Send us a message and an adviser for Saudi Arabia confirms the scope and the fee before any work starts.