Saudi Arabia’s Zakat, Tax and Customs Authority (ZATCA) has approved the executive regulations for the Real Estate Transaction Tax (RETT), published in the official gazette on 9 April 2025.

The regulations will take effect on 10 April 2025, following the 180-day period from the publication of the RETT law on 11 October 2024.

The RETT rate is set at 5% and applies to all real estate transactions, covering all property types, regardless of their form, use, or completion status. This includes transactions involving either whole or partial properties, whether documented or not.

The regulations cover definitions, valuation rules, transaction timing, and payment requirements. They also provide exemptions for certain cases, such as inheritance, endowments, and transfers between close relatives.

Earlier, the Saudi Arabian Zakat, Tax, and Customs Authority (ZATCA) released the draft regulations for the Real Estate Transaction Tax (RETT) for public consultation on 15 February 2025.