Real Estate Transaction Tax (RETT) Saudi Arabia
Complete RETT compliance — transaction tax calculation, ZATCA filing, first-time buyer exemption, VAT interaction, and RETT planning for property developers and buyers.
The introduction of RETT significantly changed the tax economics of real estate transactions in Saudi Arabia. Critically, properties subject to RETT are excluded from VAT — meaning sellers cannot charge VAT on RETT-applicable transactions (with narrow exceptions for commercial properties under construction). Intelli Solutions provides comprehensive RETT compliance and planning services for property developers, investors, real estate funds, and individual buyers across Saudi Arabia.
RETT — Key Rules and Exemptions
Standard Rate — 5%
Applies to most real estate transfers: residential property, commercial property, land, and agricultural land sold by Saudi and foreign sellers.
- Paid by the seller within 30 days
- Calculated on the actual consideration
- ZATCA must be notified of all transfers
- Applies to gifts at fair market value
Key Exemptions
- First-time homebuyer: Exempt for Saudi nationals purchasing first residential property up to SAR 1 million (was SAR 850K) — subject to conditions
- Divorce settlements: Transfer between divorced spouses exempt
- Inheritance: Direct inheritance transfers exempt
- Government entities: Transfers to/from government bodies exempt
- Endowments (Waqf): Charitable endowment transfers exempt
RETT vs VAT on Real Estate: Commercial property transactions subject to RETT are excluded from VAT — meaning no 15% VAT applies. However, first sale of residential buildings by developers was recently clarified as 0% VAT (zero-rated) with the ability to recover input VAT. The interaction between RETT and VAT requires careful analysis for each transaction type, particularly for off-plan sales and mixed-use developments.
Real Estate Transaction Tax Saudi Arabia — Key Facts
Frequently Asked Questions — Real Estate Transaction Tax Saudi Arabia
Other Tax & Zakat Services
Buying or Selling Property in Saudi Arabia?
Our RETT specialists ensure you calculate, file, and pay the correct tax — and claim every eligible exemption. Free consultation.