The Zakat, Tax and Customs Authority (ZATCA) has reported over 568,671 real estate sales in several Saudi regions and cities, through its Real Estate Transaction Tax (RETT) service.
Riyadh Province recorded the highest number of real estate sales, at 144,468 transactions, followed by Jeddah at 57,648, Buraidah at 23,864, Makkah at 20,878, Dammam at 19,471, Madinah at 18,061 Ha'il at 14,600, Al-Ahsa at 12,646, Khobar at 11,580, while Hafr Al Batin came last at 10,748 sale transactions.
The Real Estate Transaction Tax Platform is an e-service that allows taxpayers of business sector to register their real estate in the Real Estate Transaction Tax (RETT) before the conveyance of the real estate or the documentation of the contract have been completed. The Platform allows taxpayers to learn about the tax value for their properties and issue a payment invoice with the amount of the due tax.
The implementation of the RETT was enforced by the Royal Order No. (A/84) dated October 4, 2020. RETT exempts all real estate obtained by sale from the 15% VAT, and imposes a 5% RETT. Real estate transaction is defined as “any legal disposition that transfers the ownership of the property, or its possession, such as: sale, compensation, donation, bequest, swap, lease, finance lease, and transfer of shares in real estate companies."