Saudi real estate transaction tax (RETT) calculator
Enter the sale price to see the 5% tax, how much the first-home relief saves, the broker's commission and the totals for buyer and seller.
How the tax is calculated
Tax base = agreed price, or fair market value if higher
RETT = tax base × 5%
First home: RETT = (tax base − 1,000,000) × 5%, never below 0
Broker fee = price × agreed % + 15% VAT
| Item | Rule |
|---|---|
| Rate | 5% of the value of the disposal |
| Base | Agreed value, but not less than fair market value on the transaction date |
| Liable person | Seller (assignor); the buyer can agree to bear it, but the seller stays liable |
| Deadline | Before notarisation; 30 days from the contract if not notarised |
| First home | No tax on the first SAR 1,000,000 for eligible citizens with a Ministry certificate |
| Late payment | 2% of unpaid tax per month or part month, up to 50% |
| VAT | Not charged on the sale; 15% on services such as brokerage |
These rules follow ZATCA's Detailed Guideline for RETT (version 6, May 2026), which explains the Real Estate Transaction Tax Law issued by Royal Decree M/84 and in force since 10 April 2025 (sections 4.2 base, 4.3–4.4 deadlines, 6 first home, 7.1 fines, 10.3 liability). The 2025 law also taxes some transfers of shares in companies that mainly own real estate; this calculator covers direct property sales only.
Worked examples
Example 1: resale villa, seller pays
Price SAR 1,200,000, no first-home certificate. RETT = 1,200,000 × 5% = SAR 60,000, paid by the seller before the transfer. With a 2.5% broker fee paid by the buyer (30,000 + 4,500 VAT = 34,500), the buyer pays SAR 1,234,500 and the seller keeps SAR 1,140,000.
Example 2: first home above SAR 1,000,000
Price SAR 1,300,000, buyer has a first-home certificate. Taxable amount = 1,300,000 − 1,000,000 = 300,000, so RETT is SAR 15,000. The state bears the tax on the first million (SAR 50,000).
Example 3: first home under SAR 1,000,000
Apartment at SAR 850,000 with a certificate: no tax to pay. Without the certificate the tax would be SAR 42,500.
Example 4: price below market value
A family sells a plot for SAR 1,000,000 when its fair market value is SAR 1,500,000, and it is not an exempt gift. The tax is worked out on 1,500,000: SAR 75,000, not 50,000. This is the example ZATCA's guideline uses.
Example 5: buyer agrees to pay everything
Price SAR 2,000,000, buyer bears the tax and a 2.5% commission. RETT 100,000; commission 50,000 + 7,500 VAT. The buyer pays SAR 2,157,500 in total; the seller receives the full 2,000,000, but stays liable to ZATCA if the tax is not paid.
Common mistakes
- Adding VAT to the price. A property sale carries RETT, not VAT. VAT only applies to services like the broker's fee.
- Assuming the buyer is liable. The seller is liable in law; who pays in practice is up to your contract. Write it down.
- Declaring a low price. ZATCA can tax the market value and add fines.
- Expecting the first-home relief without a certificate. The certificate comes from the Ministry of Municipalities and Housing and is checked by ZATCA when the seller registers the sale.
- Leaving payment to the notary visit. The tax has to be paid and shown before the deed can be transferred, so plan the cash in advance.
Frequently asked questions
How much is the real estate transaction tax in Saudi Arabia?
5% of the value of the property. It applies to sales and other disposals of land and buildings, whether residential or commercial, under the RETT Law that took effect on 10 April 2025.
Is the tax worked out on the price or the market value?
On the agreed value, as long as it is not less than the fair market value on the transaction date. If you agree a price below market value, ZATCA can work out the tax on the market value instead. Its guideline gives the example of a SAR 1,000,000 price on a property worth SAR 1,500,000, taxed on 1,500,000.
Who pays the RETT, the buyer or the seller?
In law the seller (the "assignor") is liable to ZATCA. The parties can agree that the buyer bears the tax, and that is common, but the seller stays responsible to ZATCA if it is not paid.
When must the tax be paid?
Before the sale is notarised: a deed cannot be transferred without proof that the tax was paid or that the sale is exempt. For sales not notarised, the tax is due within 30 calendar days of the contract. The seller registers the sale on ZATCA's RETT platform.
Is there an exemption for a first home?
Yes, for Saudi citizens who qualify for housing support. The buyer gets a "first home" certificate from the Ministry of Municipalities and Housing portal and gives it to the seller. No tax is charged on the first SAR 1,000,000 of the price; 5% is charged on any amount above that. The state bears up to SAR 50,000.
Is VAT charged on a property sale too?
No. Since October 2020, sales of real estate are exempt from VAT and RETT is charged instead. VAT at 15% still applies to services around the sale, such as the broker's commission.
What is exempt from RETT?
Main exemptions include dividing an inheritance, a notarised gift to a spouse or relatives up to the third degree (the property must not be sold for 3 years), endowments, transfers to government bodies, licensed charities without payment, temporary transfers as loan security, and sales ordered by a court. Each has conditions in the law and regulations.
What happens if I pay late?
ZATCA charges 2% of the unpaid tax for each month or part of a month, up to 50% of the unpaid tax. Understating the value can lead to the tax being recalculated and further fines.
Is the broker commission fixed at 2.5%?
2.5% is the figure most often quoted, but it is agreed in your brokerage contract. Enter the rate you agreed and who pays it; the calculator adds 15% VAT.
Results are estimates for a direct property sale. Exemptions and the first-home relief have conditions set in the law and ZATCA's rules, and ZATCA decides the tax due. This is not tax or legal advice.
Last verified on 2026-11-09 against Real Estate Transaction Tax Law (Royal Decree M/84, in force 10 April 2025) and the ZATCA Detailed Guideline for RETT, version 6 (May 2026).