Saudi Real Estate Transaction Tax (RETT) Calculator Widget
Calculate the 5% Real Estate Transaction Tax on a property sale in Saudi Arabia, on the higher of the agreed price and fair market value, and see how much the state bears for a citizen buying a first home - checked against ZATCA's own worked examples.
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How it works
Real estate sales left VAT on 4 October 2020 and became subject to a 5% Real Estate Transaction Tax, now governed by the RETT Law approved by Royal Decree M/84, in force since 10 April 2025. The tax is 5% of the value of each disposal: the price the parties agree, but never less than the property's fair market value, and without the profit on any financing. It is charged again on every transfer. The seller is the taxpayer and pays it on or before notarisation; the buyer becomes jointly liable only if it caused the tax to be underpaid, for instance by understating the price. For a Saudi citizen buying a first home with a First Home certificate from the housing platform, the state bears the tax on the first SAR 1,000,000 of the price and 5% applies only to the excess. ZATCA's guideline examples are A2Z's test cases: SAR 800,000 gives SAR 40,000, and a SAR 1,000,000 contract valued at SAR 1,500,000 gives SAR 75,000.
Calculation method
- Taxable value = max(agreed price, fair market value)
- RETT = 5% x taxable value
- Eligible first home: state bears 5% x min(value, SAR 1,000,000)
- Payable = RETT - amount borne by the state
Worked examples
ZATCA Example 7
Inputs: Fair market value SAR 800,000
Result: RETT SAR 40,000
ZATCA Example 8
Inputs: Contract SAR 1,000,000; market value SAR 1,500,000
Result: RETT SAR 75,000
Tax follows the higher market value.
Citizen's first home
Inputs: Price SAR 1,500,000; first-home certificate
Result: Payable SAR 25,000
75,000 less 50,000 borne by the state.
A calculation aid, not tax advice. ZATCA assesses the tax on each transaction.
Limitations
- Exemptions - estate division, gifts to close relatives, endowments, government transfers and others - are not modelled.
- The additional fee for non-Saudi buyers under the 2026 ownership law is not included; its final rates were not confirmed.
- Eligibility for the first-home relief is decided through the housing platform, not by the widget.
Where publishers use it
- A Riyadh or Jeddah estate agent's listing page showing the tax on the asking price
- A notary or conveyancing firm explaining who pays RETT
- A property blog comparing the tax with and without the first-home relief
Questions
What is the real estate transaction tax in Saudi Arabia?
5% of the value of each real estate disposal - the agreed price or fair market value, whichever is higher - under the RETT Law (Royal Decree M/84). It replaced VAT on property sales in October 2020.
Who pays RETT, the buyer or the seller?
The seller is legally liable. The buyer is jointly liable only if it caused under-payment. Buyer and seller can agree commercially who bears the cost, but ZATCA collects from the seller.
Is a first home exempt from RETT?
For an eligible Saudi citizen with a First Home certificate, the state bears the tax on the first SAR 1,000,000 of the price. On a SAR 1,500,000 home the tax is SAR 75,000, of which the state bears SAR 50,000.
Is there VAT on top of RETT?
No. The sale of real estate is exempt from VAT; RETT applies instead. Services such as brokerage still carry 15% VAT.
Rules and official sources
Every legal or regulatory figure this widget uses is listed here, with the official page it was read from. The widget reads them from A2Z's rule file for Saudi Arabia; when a rule changes, the widget changes with it.
| Rule | Official source | In force from | Last verified | Next review |
|---|---|---|---|---|
| Real Estate Transaction Tax (RETT) rate 5% of the value of each real estate disposal: the agreed price, but not less than fair market value, excluding the financing profit. The seller is liable; the buyer is jointly liable only if it caused under-payment. No VAT on the sale (VAT IR Art. 30(1)(a)). RETT Law (Royal Decree M/84) in force since 10 April 2025; 5% since 4 October 2020 (Royal Order A/84). |
Detailed Guideline for RETT (v6), RETT Law (Royal Decree M/84) and Implementing Regulations Zakat, Tax and Customs Authority (ZATCA) - RETT Law Art. 2; Guideline Examples 7-10 |
4 Oct 2020 | 7 Oct 2026 | 5 Apr 2027 |
| First-home RETT borne by the state For an eligible Saudi citizen's first home (First Home certificate on housing.gov.sa), the tax on the first SAR 1,000,000 of the price is borne by the state; 5% applies to the amount above. Reconfirmed in Guideline v6 (May 2026). |
Detailed Guideline for RETT (v6) Zakat, Tax and Customs Authority (ZATCA) - Section 1.1 (Royal Order A/84) |
4 Oct 2020 | 7 Oct 2026 | 5 Apr 2027 |
Sources
- Detailed Guideline for RETT (v6), RETT Law (Royal Decree M/84) and Implementing Regulations - Zakat, Tax and Customs Authority (ZATCA) . RETT Law Art. 2; Guideline Examples 7-10. Verified 2026-10-07.
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Saudi Real Estate Transaction Tax (RETT) Calculator by A2Z Tools - https://a2z.tools/embed/saudi-rett-calculator
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