How do I use the first-home real estate transaction tax relief?
Short answer
The state bears the 5% Real Estate Transaction Tax (RETT) on the first SAR 1,000,000 of the price of a Saudi citizen’s first home, a maximum of SAR 50,000, under Item Five of Royal Order A/84 dated 14/2/1442H. To use it, the buyer issues a tax-bearing certificate on the Sakani platform and gives it to the seller, who registers the sale on the Zakat, Tax and Customs Authority (ZATCA) platform, where eligibility is checked automatically. The certificate is valid for 3 months, and the relief does not cover land, self-build or investment buildings.
Who qualifies and what is covered
The buyer must be a Saudi citizen buying a first home. Sakani defines eligibility as there being no home or residential property in the citizen’s name in Ministry of Justice records, or housing loan in their name with the Real Estate Development Fund or a commercial bank; the certificate is issued only after this is checked, and the citizen signs a first-home declaration.
Sakani gives villas, apartments, floors and duplexes as examples of covered homes, and excludes land, self-build and the purchase of investment buildings. The certificate is free and issued instantly on the Sakani website or app.
How much the state bears, and prices above SAR 1 million
The state bears the tax on the first SAR 1 million of the price, so nothing is paid if the price is SAR 1 million or less. Above that, 5% applies to the excess only; Sakani says the citizen bears it, and it is paid to ZATCA with the payment number ZATCA issues automatically, while the seller remains the person liable to pay it to ZATCA.
- An apartment for SAR 900,000: the tax is SAR 45,000, all borne by the state.
- A villa for SAR 1,500,000: the tax is SAR 75,000, of which the state bears SAR 50,000 and SAR 25,000 is paid.
Off-plan and under-construction purchases: official statements differ
Sakani’s FAQ (as checked on 5 October 2026) says the relief applies “only to an existing first home”. Sakani’s beneficiary care account on X said on 15 February 2024 that it covers ready homes, units under construction and shell houses with a building completion certificate. ZATCA’s customer-care account on X (“Ask ZATCA”) said on 18 April 2025 that it is for a first home “ready for living only” and covers ready units and off-plan units.
The Royal Order itself refers to “the purchase price of the citizen’s first home” without distinguishing by construction stage, so it is wise to confirm with Sakani on 199090 before signing. In an off-plan sale the tax falls due on the date the transfer of ownership is notarised and is paid on or before that date; because the certificate is valid for 3 months, it is best issued close to the transfer date.
Steps
- Sign in to the Sakani website or app as a beneficiary and open the service for the state bearing RETT on a first home.
- Fill in the form (email and monthly income), submit it, and give the certificate you receive to the seller.
- The seller signs in to ZATCA’s RETT platform, selects a residential property and the home type (villa, duplex, apartment or floor), and enters the buyer’s ID number, the transaction date and the value.
- ZATCA checks the certificate automatically, removes the tax on the first SAR 1 million and issues a payment number for any remainder.
- The notary public or accredited notary completes the transfer after confirming the registration and payment of any amount due.
Follow-up questions
I paid the full tax before I knew about the relief. Can I get it back?
Yes, according to Sakani, if you meet the first-home condition. You apply to the Ministry of Municipalities and Housing with proof of paying the tax and owning the home; if you are eligible the tax is paid to you directly, and the home is recorded against your name.
What if the buyer turns out not to be eligible after the sale?
ZATCA’s guideline says the buyer then becomes jointly liable with the seller for the unpaid tax, and ZATCA notifies both of the amount and the payment date.
Can a non-Saudi use the relief?
No. The Royal Order covers a citizen’s first home, and Sakani’s service is for Saudi citizens.
Official sources
- Sakani — FAQ on the first-home real estate transaction tax certificate
- Sakani — service page: state bearing RETT for a first home
- SPA: text of Royal Order A/84 dated 14/2/1442H (Item Five)
- Detailed Guideline for the Real Estate Transaction Tax, version 6 (May 2026) — ZATCA
- Sakani beneficiary care account on X: conditions for state-borne RETT (15 February 2024)
- ZATCA’s “Ask ZATCA” account on X: first home and off-plan units (18 April 2025)
General information for guidance, not legal advice; the governing regulations and official bodies are the final reference.
Read also
Related questions
- Who pays the real estate transaction tax, the seller or the buyer?
- What is the real estate transaction tax law in Saudi Arabia?
- What is the minimum down payment for a home mortgage in Saudi Arabia?
- Who pays the Ejar lease documentation fee, the landlord or the tenant?
- How much does an execution request cost for rent claims?
- Is there VAT on residential rent in Saudi Arabia?
Managing properties?
Amlakire organises leases, instalments, collection and reports in one place, with a permanently free plan for individual owners.
Explore the platform