Saudi Real Estate Transaction Tax Calculator
The 5% tax on selling a property in Saudi Arabia, plus the broker's fee and VAT, with what the seller keeps and what the buyer pays.
Leave a box empty to use the figure shown. The first-home limit could not be confirmed on the ZATCA page (it mentions both SAR 850,000 and SAR 1,000,000), so check the current figure with the Ministry of Housing or ZATCA.
How your property tax is worked out
5% of the value → less any first-home relief → brokerage + VAT → what the seller keeps.
- 1
5% of the value
1,000,000 × 5%
= SAR 50,000 - 2
Less first-home relief
no relief
= SAR 50,000 - 3
Brokerage + 15% VAT
25,000 + 3,750
= SAR 28,750 - 4
Net to the seller
1,000,000 − 50,000
= SAR 950,000
Read more: the formula, a worked example and the exemptions
The formula
Tax value = the sale price, or the fair market value if that is higher
RETT = tax value × 5%
First home (Saudi citizen): the state pays tax value up to the limit × 5%, you pay the rest
Late penalty = RETT × 5% × months late (a part month counts as a month)
Broker = price × broker % + 15% VAT on it
Net to the seller = price − the seller's share of RETT and broker
Total for the buyer = price + the buyer's share of RETT and broker
Worked example
A property sells for SAR 1,000,000. The seller bears the tax, it is not a first home, and the buyer pays a 2.5% broker's fee:
- RETT: 1,000,000 × 5% = SAR 50,000, paid by the seller
- Broker: 1,000,000 × 2.5% = 25,000 + 15% VAT of 3,750 = SAR 28,750, paid by the buyer
- Total costs: 50,000 + 28,750 = SAR 78,750, which is 7.88% of the price
- Net to the seller: 1,000,000 − 50,000 = SAR 950,000
- Total for the buyer: 1,000,000 + 28,750 = SAR 1,028,750
If it were a Saudi citizen's first home at SAR 1,200,000, the full tax would be 1,200,000 × 5% = SAR 60,000. With a SAR 1,000,000 limit the state pays 1,000,000 × 5% = SAR 50,000, leaving 200,000 × 5% = SAR 10,000 to pay. If the SAR 50,000 of tax were paid 2.5 months late, the penalty would be 3 × 5% × 50,000 = SAR 7,500.
Figures used
| Item | Figure | Status |
|---|---|---|
| RETT rate | 5% of the value | Confirmed (ZATCA) |
| Tax value | Price, not less than market value | Confirmed (ZATCA) |
| Late payment penalty | 5% of unpaid tax a month | Confirmed (ZATCA) |
| VAT on a property sale | Exempt | Confirmed (ZATCA) |
| VAT on the broker's fee | 15% | Saudi VAT rate (ZATCA) |
| First-home value limit | SAR 1,000,000 | Check the current figure |
| Broker's fee | 2.5% of the price | Typical, agree with your broker |
Common exemptions
ZATCA's guide lists these transfers as exempt from RETT, each with conditions:
- Dividing or handing out an inheritance (the tax is due when the heirs later sell)
- A gift to a husband, wife or relative up to the third degree
- Transfers to the government, public-benefit projects, charitable endowments and licensed charities
- Property taken by the state for public use (expropriation)
- Transfers under a documented will, some financing guarantees and older lease-to-own contracts
- Property given as in-kind capital to a company or fund, if the shares are held for the required period (generally five years)
- A sale cancelled by both sides within 90 days
Good to know
- The transaction is registered and the tax paid through ZATCA's real estate transaction service before or during the title transfer.
- Giving wrong details can bring a fine of at least SAR 10,000, up to the value of the tax. Tax evasion can bring a fine of one to three times the unpaid tax.
- First home: the buyer gets a certificate from the Ministry of Municipal, Rural Affairs and Housing, and the seller uses it in the ZATCA service.
- Not covered: the 30% rule for selling shares in real estate companies, notary or Ejar fees, and mortgage costs.
For general information only. Checked on 17 Oct 2026 on ZATCA's own Simplified Guideline: Real Estate Transaction Tax (version 5, 3 May 2024): the 5% rate, market value rule, seller liability, VAT exemption, exemptions and the 5% a month penalty. The first-home value limit and the broker's fee are not confirmed there and are labelled "check the current figure" or "typical". Check with ZATCA or a tax adviser before you rely on them.
Common questions
What is the real estate transaction tax in Saudi Arabia?
The real estate transaction tax (RETT) is 5% of the value of a property when it is sold or otherwise disposed of, such as a gift or swap. The value is the agreed price, but not less than the fair market value at the time. A SAR 1,000,000 sale means SAR 50,000 of RETT. It is paid before or during the transfer of the title deed.
Who pays the real estate transaction tax, the buyer or the seller?
ZATCA says the seller is liable and must pay it before or during the conveyance. Buyer and seller can still agree who bears the cost in the price, so the calculator lets you pick seller, buyer or a 50:50 split and shows the net to the seller and the total for the buyer.
Is there VAT on buying property in Saudi Arabia?
Sales of real estate are exempt from VAT and the 5% RETT applies instead, according to ZATCA. VAT at 15% does apply to services around the sale, such as the broker's fee, which this calculator adds.
Do Saudi citizens pay RETT on their first home?
ZATCA says the state bears the tax on a Saudi citizen's first home, with a certificate from the Ministry of Municipal, Rural Affairs and Housing. There is a value limit: this calculator uses SAR 1,000,000 (check the current figure) and assumes the state pays the tax on the value up to it and the rest is taxed.
What is the penalty for paying RETT late?
ZATCA charges 5% of the unpaid tax for each month or part of a month it is late. On SAR 50,000 of RETT paid two and a half months late, that is 3 × 5% × 50,000 = SAR 7,500.
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