How real estate exchange deals are taxed in Saudi Arabia
Saudi Zakat, Tax and Customs Authority clarifies 5% real estate transaction tax applies to property swaps, with some exemptions under executive regulations.
Key Takeaways
AIA question was submitted to the Zakat, Tax and Customs Authority by a follower who asked: "In the case of exchanging one property for another, how is the real estate transaction tax calculated and paid?"
The authority explained, via its 'Ask Zakat, Tax and Customs' page, that since October 4, 2020, a 5% real estate transaction tax has been imposed on all property transfers unless exempted.
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It noted that the real estate transaction tax applies to any legal action transferring ownership or possession of real estate, including exchanges.
The authority added: "You can also review Article 3 on exemptions in the executive regulations for real estate transaction tax at the following link: http://zat.ca/8fqt08."