Real Estate Transaction Tax (RETT) Calculator

Quick answer

Saudi Arabia’s real estate transaction tax (RETT) is 5% of the total value of the property disposal. The person disposing of the property (usually the seller) is legally liable, though the parties may agree otherwise. When the buyer is a citizen buying a first home with an eligibility certificate from the Sakani platform, the state bears the tax on the first SAR 1,000,000 of the price — a maximum of SAR 50,000. Example: an apartment for SAR 1,200,000 → tax SAR 60,000, of which the state bears SAR 50,000 and SAR 10,000 is paid.

Calculator

Result

RETT (5%)
60,000.00 SAR
Borne by the state
50,000.00 SAR
Amount payable
10,000.00 SAR

Estimates for guidance only; the governing regulations and official bodies are the final reference.

How it is calculated

  • Tax = disposal value × 5%
  • State relief (first home) = min(disposal value, 1,000,000) × 5% — max SAR 50,000
  • Amount payable = tax − state relief

Conditions for first-home relief

  • For a citizen who does not own a home, with an eligibility certificate issued on the Sakani platform and given to the seller; it is valid for three months.
  • Sakani describes it as covering an existing first home (villa, apartment, floor, duplex), not land, self-build or investment buildings; Sakani’s and ZATCA’s customer-care accounts (Feb 2024, Apr 2025) have said units under construction or sold off-plan are covered, so confirm with Sakani (199090) before signing.
  • The seller registers the disposal with ZATCA, which checks eligibility automatically and deducts the relief; any remainder is paid.
  • RETT is refunded if overpaid or paid in error, or paid on a disposal that was not completed or was cancelled by mutual consent within 90 days of notarisation (conditions apply).

FAQ

Who pays the real estate transaction tax?

It is collected from the person disposing of the property (usually the seller), who is legally liable. The parties may agree who actually bears it, but the seller remains liable to ZATCA.

How much RETT does the state bear for a first home?

The tax on the first SAR 1 million of a citizen’s first home — a maximum of SAR 50,000. The citizen pays the tax on any amount above SAR 1 million.

Does the relief cover buying land or self-build?

No. According to Sakani, the relief does not cover land, self-build or investment buildings; it describes the covered home as an existing one (villa, apartment, floor or duplex).

Is RETT the same as VAT?

No. It is a separate 5% tax on property disposals that replaced VAT on real estate sales from October 2020, now governed by its own law issued by Royal Decree M/84 dated 19/3/1446H.

Official sources

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