Real Estate Transaction Tax in Saudi Arabia: Everything You Need to Know + Step-by-Step Submission Guide

What is the Real Estate Transaction Tax (RETT)?

The Real Estate Transaction Tax (RETT) is a 5% tax applied to any transaction that results in the transfer of real estate ownership within the Kingdom of Saudi Arabia.

Transactions subject to RETT include:

• Sale
• Assignment
• Gift (in specific cases)
• Exchange

Transactions exempt from RETT:

• Gifts between first-degree relatives
• Transfer of property between heirs
• Real estate financing through licensed financial institutions
• Mergers between affiliated companies

Who is responsible for paying the real estate tax?

Typically, the seller is responsible for settling the RETT. However, the parties may agree on who will bear the tax burden, provided that this is clearly stated in the sale or transfer contract.

How to Submit a Real Estate Transaction Tax Request via ZATCA Portal

1. Access the ZATCA Portal

• Direct link: https://zatca.gov.sa

2. Select the “Real Estate Transaction Tax” service

3. Fill in the application details:

• Property information (location, type, title deed number)
• Parties’ information (seller and buyer)
• Transaction value

4. Upload the required documents:

• Copy of the title deed
• Copy of the contract or transfer agreement
• National ID or Commercial Registration

5. Review and submit the declaration:

• Confirm accuracy of the entered data
• Obtain the SADAD bill number for payment

6. Pay the tax amount via the SADAD payment system

7. Obtain the RETT Payment Certificate or Exemption Certificate

• This certificate is mandatory for completing the transfer process with the Notary Public or an authorized private notary.

Tax Obligations for Non-Resident Foreign Companies Providing Services in Saudi Arabia

Important Tips to Avoid Tax Issues

• Carefully review all property and party information before submitting the application
• Always keep a copy of the payment or exemption certificate
• Submit the request before completing the transfer to avoid penalties
• In cases of exemption, apply for it first before proceeding with the title transfer

Why Consult a Tax Advisor?

Certain real estate transactions—especially those involving companies or unique arrangements—can be complex. Engaging a professional tax advisor ensures proper compliance, reduces risk, and helps avoid legal or financial consequences.

Conclusion

Submitting a Real Estate Transaction Tax (RETT) declaration is now a straightforward electronic process through the ZATCA portal. However, it requires accuracy and adherence to legal steps. By following the procedure outlined above and submitting all required documentation, you’ll be able to complete your transaction efficiently and with full compliance.

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