Real estate tax imposed: Saudi Arabia has taken a new step to diversify its frugality and has enforced a Real Estate sale duty (RETT) nationwide from April 10, 2025, with a rate set at 5.
Real estate tax imposed, According to the Zakat, Tax and Customs Authority, this new duty will apply to all types of parcels, including domestic, marketable, and artificial parcels. This duty will be applicable regardless of the nature of the property, its use, development status, or the transfer of full or partial power. It will indeed apply to undocumented deals.
According to a foreign news agency, to apply this new regulation, all property transfers will be needed to be registered through the RETT platform on the Zakat, Tax and Customs Authority’s website. All parties involved in the sale will have to expose the details of the property and any possible exceptions to a notary or legal authority.
The Zakat, Tax and Customs Authority said on its sanctioned-account that this new duty law has been introduced to establish a clear legal frame in the property sector, promote investment, and ameliorate duty immunity for socio- profitable pretensions.
The new regulations clarify all property deals to which the duty will apply, specify the duty rate and payment system, while new measures have also been included to fairly determine the request value of the property. The penalty rate for late duty payment has also been reduced from 5 to 2.
Exceptions include transfers performing from heritage distribution, registered public or private bents, and property transfers between misters, women or cousins up to the third degree.
It should be noted that this measure is part of Saudi Arabia’s broader profitable strategy, which aims to bring significant development to the property sector by 2025. According to a recent report, the value of Saudi construction systems in 2024 reached 29.5 billion, while the value of the Saudi property request is anticipated to reach 101.62 billion by 2029, growing at a periodic rate of 8 from 2024.