Real Estate Transfer Tax Calculator
Calculate the 5% Real Estate Transfer Tax (RETT) on property transactions in Saudi Arabia
Property Transaction Details
What is RETT?
Real Estate Transfer Tax (RETT) is a 5% tax imposed on all real estate disposal transactions in Saudi Arabia, including sales, exchanges, gifts, and other transfers.
This tax replaced the 15% VAT on real estate per Royal Decree No. (A/84) dated 14/2/1442H, significantly reducing the tax burden on property transactions.
Tax-Exempt Cases
- First Home: Exemption up to 1,000,000 SAR for Saudi citizens
- Gifts: To relatives up to 3rd degree (children, parents, grandparents, siblings)
- Inheritance: Distribution of estate among legal heirs
- Endowment: Transferring property to a licensed charity or endowment
- Temporary Disposal: As collateral for financing or credit
Who Pays the Tax?
- The seller is primarily responsible for paying the tax
- Buyer and seller can agree on who bears the tax
- Tax must be paid before or during the transfer process
- Non-payment prevents completion of ownership transfer
Tax Registration & Payment Steps
- Log in to the ZATCA portal
- Select Real Estate Transfer Tax service
- Enter property, seller, and buyer details
- Verify data and approve the declaration
- Pay the tax through the SADAD payment system
First Home Exemption Details
The government bears the RETT for the first home of Saudi citizens up to 1,000,000 SAR of the property value. Here are the conditions:
Eligibility Requirements:
- Buyer must be a Saudi citizen
- Must be the buyer's first home
- Property must be residential (apartment, villa, duplex, townhouse)
- Must obtain an eligibility certificate from the Ministry of Housing
Exemption Mechanism:
- If property value is 1,000,000 SAR or less: Full exemption
- If property value is more than 1,000,000 SAR: First million is exempt, tax applies to the remainder
- Apply through the Ministry of Housing portal (Sakani)
Disclaimer:
This calculator is for informational and estimation purposes only and does not constitute tax or legal advice. Results are approximate and may differ from actual amounts. Please refer to ZATCA for official and accurate information.