Saudi Arabia has released updated regulations for its real estate transaction tax (RETT) system, published in the Official Gazette on 11 October 2024.
The new rules implement a 5% tax on all real estate disposals, applying to properties without regard for their condition, form, usage, completion status, or documentation.
The tax will be calculated based on the total value agreed upon by both parties and exclude financing costs from licensed entities, reflecting the fair market price at the time of the transaction.
The regulations outline specific exemptions for certain transactions.
It also designates the disposer as primarily responsible for tax payments, and administrators may share liability for any noncompliance.
The updated RETT law, under Ministerial Resolution No. 84, will take effect 180 days after its publication. The Zakat, Tax, and Customs Authority (ZATCA) will issue the implementing regulations for the updated law.
