What is RETT in Saudi Arabia?

RETT is the Real Estate Transaction Tax — a 5% tax charged on the disposal (sale or transfer) of real estate in Saudi Arabia. It replaced the previous 15% VAT on property in 2020 and is the main transfer tax buyers and sellers encounter on a sale.

Who pays RETT, the buyer or the seller?

RETT is legally due on the disposal of the property and is typically settled by the seller, but in practice the cost is often negotiated into the deal and can effectively be borne by the buyer. Either way it must be paid and the transfer registered before ownership passes.

Is there a first-home exemption?

Yes. Saudi citizens buying their first home benefit from an exemption on the first SAR 1,000,000 of the property value, so RETT applies only to value above that threshold. The exemption is per citizen and subject to eligibility conditions set by the authority.

How is RETT calculated above the exemption?

RETT is a flat 5% of the taxable value. For an eligible first home, the taxable value is the sale price minus the SAR 1,000,000 exemption (floored at zero); otherwise it is the full sale value. There are no tiers — the rate is the same on every dirham above the exemption.

Does this calculator store my data?

No. All figures are computed locally in your browser and nothing is uploaded, so your purchase details stay private.

Saudi Arabia Stamp Duty / Transfer Tax Calculator

Email me this result

Get this tool's output sent to your inbox, plus one useful tool a week. No spam, unsubscribe any time.

This Saudi Arabia property transfer tax calculator estimates the Real Estate Transaction Tax (RETT) on a property purchase — a flat 5% of the sale value — and applies the SAR 1,000,000 first-home exemption available to Saudi citizens, then totals your acquisition cost.

How it works

RETT is a single flat rate with no tiers:

taxable value = sale value − exemption (exemption is SAR 1,000,000 for an eligible first home, otherwise 0, floored at zero)
RETT = taxable value × 5%
total acquisition cost = sale value + RETT

RETT replaced the older 15% VAT on property in 2020. It is legally due on the disposal and usually settled by the seller, though in practice the burden is often negotiated into the price, so buyers should budget for it.

Example

A SAR 2,000,000 property bought by a Saudi citizen as a first home. The first SAR 1,000,000 is exempt, leaving a taxable value of SAR 1,000,000. RETT at 5% = SAR 50,000, for a total acquisition cost of SAR 2,050,000. The same purchase with no exemption would tax the full SAR 2,000,000 at 5% = SAR 100,000.

Notes

The first-home exemption is per eligible citizen and carries conditions set by the Zakat, Tax and Customs Authority; non-citizens and additional properties are taxed on the full value. Notary, registration and agency fees sit on top of RETT. Treat this as a planning estimate and confirm eligibility and the exact taxable value with the authority or your agent.