Since October 2020, real estate sales in Saudi Arabia are exempt from 15% VAT and instead subject to a 5% Real Estate Transaction Tax on every ownership transfer. Crucially for citizens, the state covers the tax on your first home for up to SAR 1 million of its price — this calculator shows what you actually pay and what the state bears for you.
How it works
Enter the property price and whether it's a citizen's first home. The full tax is 5% of the price; for a qualifying first home, the Ministry of Municipalities and Housing pays the tax on the first million, so you pay 5% only on the excess after obtaining the eligibility certificate via the Sakani platform.
The formula
The tax is paid to ZATCA before or during title transfer at the notary. The seller is primarily liable unless the contract explicitly agrees otherwise.
Worked example
A first home priced at SAR 1,500,000: full tax is 75,000, the state covers 50,000 (on the first million), and you pay only 25,000. At a price of 900,000, you'd pay nothing at all.
Frequently asked questions
Who pays — buyer or seller?
The seller is legally liable, but the sale contract may explicitly shift it fully or partly to the buyer. In practice it's usually folded into price negotiation, so compute it before making your offer.
What are the first-home exemption conditions?
You must be a Saudi citizen who has never owned a home, and obtain the eligibility certificate electronically via the Sakani portal before transfer. The purchased home is recorded against you; the benefit is one-time.
Are gifts and inheritance taxed?
Estate distribution among legal heirs is exempt, as are uncompensated gifts to relatives within the prescribed degrees, endowments to licensed entities, and title transfers as financing security provided ownership returns.
Illustrative only — verify with ZATCA and the Sakani platform, as regulations and exemptions are updated periodically.