Saudi Arabia: Real estate transaction tax law, implementing regulations effective April 9, 2025
Both the real estate transaction tax law and its implementing regulations are effective as of April 9, 2025.
The Zakat, Tax, and Customs Authority (ZATCA) on April 9, 2025, published the implementing regulations for the real estate transaction tax (RETT) in the official gazette.
The regulations were issued pursuant to the RETT law, which was published in the official gazette on October 11, 2024, with an effective date set from 180 days of publication. Accordingly, both the RETT law and its implementing regulations are effective as of April 9, 2025.
Key provisions of the regulations include:
- Definition of real estate company
- Definition of real estate
- Relatives up to third degree
- Real estate transaction in case of transfer of shares
- Valuation of real estate in case of right of use for more than 50 years
- Real estate transactions not subject to RETT
- Exemptions
- Real estate transaction date
- RETT payment date
For more information, contact a KPMG tax professional:
Philippe Stephanny | philippestephanny@kpmg.com