Zakat, Tax and Customs Authority clarifies real estate transaction tax on land sales
Saudi Arabia's Zakat, Tax and Customs Authority confirms a 5% real estate transaction tax applies to buying and selling land, with exemptions for first home purchases.
Key Takeaways
AIA question was submitted to the Zakat, Tax and Customs Authority by a follower, asking: "If someone buys real estate for the first time (land), are they exempt from the tax?"
The Authority clarified via its 'Ask Zakat, Tax and Customs' account on X that buying and selling land is subject to a 5% real estate transaction tax.
View the post on X
It noted that the government covers the 5% real estate transaction tax for up to 1,000,000 riyals (SAR) of the purchase price of a citizen's first ready-to-move-in home.
The Authority confirmed that this royal order does not apply to land purchases or self-built homes.