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Real Estate Transfer Tax Calculator

Calculate the 5% Real Estate Transfer Tax (RETT) on property transactions in Saudi Arabia

Property Transaction Details

SAR
Enter the agreed sale price or fair market value
Select the type of property transaction

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

  1. Log in to the ZATCA portal
  2. Select Real Estate Transfer Tax service
  3. Enter property, seller, and buyer details
  4. Verify data and approve the declaration
  5. 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)

Useful Links

ZATCA Website Sakani - First Home Exemption General Authority for Real Estate
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.

Calculating the Real Estate Transfer Tax (RETT) in Saudi Arabia

This calculator estimates the Real Estate Transfer Tax, known as RETT, that applies when property is disposed of in Saudi Arabia. RETT is charged on the transfer of real estate at a standard rate, and it replaced the earlier value-added tax treatment on most property sales. Enter the property value to see an estimated tax amount so you can budget for a purchase or sale more accurately.

The tax is generally calculated on the agreed transfer value of the property. Certain transactions may qualify for relief, such as an exemption for an eligible first-home purchase up to a defined value cap, and specific cases involving gifts between close relatives or inheritance are treated differently from ordinary commercial sales. These rules are administered by the Zakat, Tax and Customs Authority (ZATCA).

Using the Estimate Responsibly

Because exemptions, value caps, and documentation requirements can change and depend on the precise facts of each deal, treat the figure here as a planning estimate rather than a final tax assessment. Both buyer and seller obligations, registration steps, and any required declarations should be confirmed through ZATCA and a qualified professional before completing a transaction or transferring title.