Calculate the 5% RETT on a Saudi property transaction โ charged on the higher of the sale price or fair market value โ in force since 10 April 2025.
RETT payable (5%)
RETT is paid to ZATCA on the date of the transaction (notarisation). The base is the higher of the declared price or fair market value โ ZATCA can reassess FMV for up to 3 years. RETT replaced VAT on taxable real-estate disposals.
The Real Estate Transaction Tax is 5% of the value of a real-estate disposal, charged on the transaction value โ which may be no lower than the property's fair market value. RETT replaced VAT on taxable real-estate supplies and is paid on the date the transaction is notarised.
Several disposals are exempt โ inheritance, documented family gifts, registered Awqaf, transfers into licensed REITs/funds, qualifying off-plan developer sales, and qualifying group restructurings. Buying or selling commercial property and registered for VAT? Note that taxed real-estate disposals fall under RETT rather than the 15% VAT.
The Real Estate Transaction Tax is 5% of the value of a real-estate disposal. It is charged on the transaction value, which may be no lower than the fair market value of the property.
RETT took effect on 10 April 2025 under the RETT Law (Royal Decree M/84 of 22 September 2024) and its Implementing Regulations (published 24 March 2025). It replaced VAT on taxable real-estate supplies.
Sales and transfers of ownership, non-exempt gifts, certain financing arrangements (lease-to-own, Murabaha), and usufruct rights over 50 years. Some transfers of shares in property-rich companies can also be in scope.
Common exemptions include inheritance, documented gifts to a spouse or relative within the second degree, registered Awqaf (endowments), transfers into licensed REITs and real-estate funds, qualifying off-plan developer sales, transfers of listed securities, and qualifying group restructurings / M&A meeting the conditions in the regulations.
RETT is paid to ZATCA on the date of the transaction (its notarisation). All transfers are declared through the RETT platform on ZATCA's website, and ZATCA can reassess the fair market value for up to three years.
Disclaimer: Informational only โ not tax or legal advice. Whether a transaction is taxable or exempt depends on the detailed RETT Implementing Regulations. Figures are based on the RETT Law and Implementing Regulations effective 10 April 2025, current as of 20 June 2026. Confirm your position with ZATCA (zatca.gov.sa) or a qualified Saudi tax adviser. See our full disclaimer.