Saudi Real Estate Transaction Tax (RETT) Calculator 2026
5% Real Estate Transaction Tax on any Saudi property price, the first-home support for citizens (state pays RETT up to SAR 1m), the 2% non-Saudi fee, brokerage at the 2.5% cap and bank costs — the cash you need to complete.
| RETT at 5% | — |
|---|---|
| First-home support | — |
| Non-Saudi disposition fee (2%) | — |
| Brokerage commission | — |
| Bank & other costs | — |
| Total buying costs | — |
| Cash needed on top of the deposit | — |
| Costs as % of price | — |
| Payment deadline | — |
In short
Saudi property sales carry a 5% Real Estate Transaction Tax (RETT) instead of VAT, payable to ZATCA within 30 days; for eligible Saudi citizens the state bears the RETT on the first SAR 1,000,000 of a first home, so a SAR 1.5 million first home pays SAR 25,000 instead of SAR 75,000. Brokerage is capped at 2.5% and non-Saudi buyers in Riyadh, Jeddah, Makkah and Madinah pay a 2% REGA fee.
Who this is for: Buyers and sellers of Saudi property, first-home buyers checking the citizen exemption, brokers and non-Saudi investors budgeting the full cost to complete.
RETT and the other costs of buying property in Saudi Arabia
Since October 2020 property sales in Saudi Arabia carry a 5% Real Estate Transaction Tax instead of 15% VAT; the new RETT Law and regulations in force from 9 April 2025 keep the rate at 5% on the full disposal value, due within 30 days through the ZATCA portal before the deed transfers. The seller is the taxpayer, but in practice contracts frequently pass the cost to the buyer.
- First home support: for eligible Saudi citizens the state bears the RETT on the first SAR 1,000,000 of a first home, so a SAR 1.5 million first home pays 5% only on the SAR 500,000 above — SAR 25,000 instead of SAR 75,000.
- Exemptions include transfers to spouses and relatives up to the third degree without consideration, inheritance, transfers to a company wholly owned by the transferor, government and public-benefit transfers, and listed-security trades.
- Brokerage is capped by REGA at 2.5% of the price (plus 15% VAT on the commission) and is negotiable; who pays is a matter of contract.
- Non-Saudis buying in Riyadh, Jeddah, Makkah or Madinah pay a 2% disposition fee to REGA on top; the 2026 foreign-ownership rules otherwise open most areas to non-Saudi buyers.
- Mortgage costs: bank admin fees (typically up to 1% or SAR 5,000), valuation, and for citizens the Real Estate Development Fund (Sakani) subsidised profit rates.
See also: Saudi Home Loan Calculator, Saudi End of Service Calculator (EOSB).
Assumptions
- RETT = 5% × price; first-home support = 5% × min(price, SAR 1,000,000) for eligible Saudi citizens; non-Saudi fee = 2% × price in the four cities.
- Brokerage ≤ 2.5% of price, allocated to the buyer, seller or split; buyer costs = RETT payable + non-Saudi fee + buyer brokerage + bank + other.
- Cash to complete = buyer costs + (price − mortgage).
Worked example
RETT 5% = SAR 75,000, of which the state bears SAR 50,000 on the first SAR 1,000,000 → SAR 25,000 payable. Brokerage 2.5% = SAR 37,500; bank fees SAR 5,000; other SAR 3,000. Total buying costs SAR 70,500 (4.7% of price), plus the SAR 300,000 deposit = SAR 370,500 cash to complete. A standard buyer pays the full SAR 75,000 RETT (SAR 120,500 total); a non-Saudi buyer in Riyadh adds a SAR 30,000 disposition fee.
Frequently asked questions
Who pays RETT in Saudi Arabia — buyer or seller?
The law makes the seller (disposer) liable, with the buyer jointly liable if involved in non-payment; in practice many contracts require the buyer to fund it, so agree it in writing.
Is there RETT on a first home?
For eligible Saudi citizens the state pays the RETT on the first SAR 1,000,000 of the price of a first home; anything above that is taxed at 5%. Second homes and non-citizens pay the full 5%.
Is VAT charged on buying a house in Saudi Arabia?
No — residential and commercial property sales have been subject to 5% RETT instead of 15% VAT since 4 October 2020. VAT still applies to brokerage, bank fees, construction contracts and commercial rent.
Is RETT charged on gifts and inheritance?
No — transfers without consideration to a spouse or relatives up to the third degree, inheritance and distributions of an estate are exempt, as are transfers to a wholly owned company under conditions.
What is the penalty for late RETT?
ZATCA charges a fine on unpaid tax (historically 5% per month of delay, capped) and may require a bank guarantee; the deed cannot be transferred until the RETT certificate is issued.
Can foreigners buy property in Saudi Arabia?
Yes — the Non-Saudi Real Estate Ownership Law (effective January 2026) allows non-Saudis to own property in designated zones, with a 2% REGA disposition fee in Riyadh, Jeddah, Makkah and Madinah and restrictions inside the two holy cities.
Does RETT apply to off-plan purchases?
Yes — RETT is due on off-plan sales too, with the regulations setting specific timing rules for when the tax falls due on off-plan contracts.
Is there RETT on commercial property?
Yes, 5% on all real-estate disposals including commercial and land, unless a listed exemption applies.
People also ask
What is the Real Estate Transaction Tax in Saudi Arabia?
5% of the property's sale value, paid by the buyer (unless agreed otherwise) through the ZATCA RETT platform before transfer.
Is RETT charged on a first home?
Saudi citizens buying a first home get the 5% covered by the state on the first SAR 1 million of value; above that RETT applies.
Is RETT the same as VAT?
No — property sales are exempt from VAT and subject to RETT instead, since October 2020.
Are gifts and inheritance subject to RETT?
No — transfers by inheritance, and gifts to spouses and relatives up to the third degree, are exempt.
Who pays RETT?
The seller is legally responsible for registration, but the tax is customarily passed to the buyer in the price or paid by the buyer directly.
Is RETT deductible?
It forms part of the acquisition cost for a business; individuals have no income tax to deduct it against.
Related calculators
See all Saudi Arabia calculators → · All free online calculators
Found an error? Report it — tell us the inputs, the result you got, what you expected and the rule or source. Confirmed corrections are published within a week.