Question 1

What is RETT (Real Estate Transaction Tax) in Saudi Arabia?

Accepted Answer

RETT (رسوم التصرفات العقارية) is a 5% tax on real estate transactions in Saudi Arabia, introduced in 2020. It is paid by the buyer on the property sale price. The tax applies to all residential, commercial, and land transactions unless specifically exempted.

Question 2

Who pays the RETT tax in Saudi Arabia?

Accepted Answer

The RETT (5% Real Estate Transaction Tax) is paid by the buyer of the property. The seller does not pay this tax. The tax is calculated as 5% of the total property sale price and must be paid at the time of transaction registration through the White Deed (Sak) platform.

Question 3

What is the standard agent commission in Saudi Arabia?

Accepted Answer

The standard real estate agent commission in Saudi Arabia is typically 2.5% of the property sale price, though this can be negotiated. By custom, the seller usually pays the agent commission, but this can vary — the buyer may pay, the seller may pay, or they may split it 50-50.

Question 4

Are there any exemptions from RETT in Saudi Arabia?

Accepted Answer

Yes, certain transactions are exempt from RETT: 1) Charitable endowments (Waqf), 2) Government entities, 3) Inheritance transfers, 4) Spousal transfers (gifts between spouses), 5) Property owned for more than 5 years may qualify for reduced rates under certain conditions. Always consult a real estate lawyer for your specific case.

Question 5

How do I pay the RETT in Saudi Arabia?

Accepted Answer

RETT is paid electronically through the White Deed (Sak) platform (sak.sa) or through the Ministry of Justice's real estate registration system. The payment must be made at the time of transaction registration. Both buyer and seller must be registered on the platform.

Question 6

What is the total cost for a buyer in a Saudi real estate transaction?

Accepted Answer

The total cost for a buyer includes: Property Sale Price + 5% RETT + Agent Commission (if the buyer pays it) + Other fees (valuation, notary, registration). For example, on a SAR 1,000,000 property, the buyer would pay SAR 50,000 RETT, and if paying agent commission (2.5%), another SAR 25,000, totaling SAR 1,075,000.

Question 7

Does RETT apply to off-plan properties in Saudi Arabia?

Accepted Answer

Yes, RETT applies to off-plan properties (properties sold before construction is complete). However, the tax is typically paid on the full sale price at the time of the sales agreement registration, not at handover. Some developers may structure payments differently, so check your sales contract.

RETT Tax at Agent Commission Splitter

Detalye ng property transaction

How to Use the RETT Tax Calculator

Step 1: Enter Sale Price

Hakbang 2: Piliin ang uri ng transaksyon

Hakbang 3: Itakda ang commission ng agent

Step 4: Choose Who Pays

Hakbang 5: I-review ang mga resulta

Understanding RETT in Saudi Arabia

Tunay na halimbawa

FAQ About RETT

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