What does this tool calculate?
It calculates the Real Estate Transaction Tax (RETT) at 5% on a real estate transaction, that is, a sale or any similar transfer of ownership. The sale of real estate is exempt from VAT, and this tax is imposed instead. The tax base is the agreed value, provided it is not less than the fair market value on the transaction date, and financing costs are not included in it.
A citizen's first home
The state bears the tax on a citizen's first home up to one million SAR of the purchase price, so the tax is calculated only on the amount above one million, with a first-home certificate. An example from the guide: a first home priced at 1,400,000 SAR, so the tax is on 1,400,000 − 1,000,000 = 400,000 at 5%, that is 20,000 SAR.
When is it calculated on market value?
If the agreed value is lower than the fair market value, such as a sale to a relative at a lower price, the tax is calculated on the market value. Example: land sold for 1,000,000 SAR with a market value of 1,500,000 SAR, so the tax is 1,500,000 × 5% = 75,000 SAR.
Frequently asked questions
When is the Real Estate Transaction Tax paid?
Is the bank financing amount included in the tax base?
Are all real estate transactions taxable?
Content last reviewed: 2026-11-03