Saudi RETT: The 5% Tax That Replaced VAT on Property
· 1 min read · Property & Mortgage
Since October 2020, most property sales in Saudi Arabia aren't subject to standard VAT — instead, a dedicated Real Estate Transaction Tax applies. Here's what buyers and sellers need to know.
Calculate your Saudi RETT
Enter the property sale value to see the 5% tax.
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The 5% rate
RETT is charged at a flat 5% of the property's sale value on most real estate transactions in Saudi Arabia, replacing the 15% standard VAT that would otherwise apply.
Who pays it
RETT is generally the responsibility of the seller, though in practice the cost is often factored into negotiations and can effectively be passed to the buyer depending on the deal.
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Frequently asked questions
Are all property transactions subject to RETT?
Most disposals of real estate are covered, though certain transactions (like specific inheritance transfers or transfers between some related entities) may have exemptions — check current ZATCA guidance for your specific situation.
Don't miss it: Calculate your Saudi RETT
Use our free tool and get your answer with real numbers.
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