Zakat, Tax and Customs Authority clarifies real estate tax on inherited property sales
Saudi Arabia’s Zakat, Tax and Customs Authority explains who is responsible for real estate transaction tax when heirs sell inherited property.
Key Takeaways
AIA question was submitted to the Zakat, Tax and Customs Authority by a follower, asking: "When selling inherited property, does the heir who sells pay the real estate transaction tax?"
The authority clarified via its 'Ask Zakat, Tax and Customs' account on X that the seller and buyer can agree on how to share the tax burden.
It added that anyone can pay the tax invoice due on the property transfer, but the seller remains responsible for settling the tax and any related obligations to the authority.
View the post on X
The authority noted that buying and selling land is subject to a 5% real estate transaction tax. The government covers the 5% tax on up to 1,000,000 riyals (SAR) of the purchase price for a citizen’s first ready-to-move-in home.
The Zakat, Tax and Customs Authority confirmed that this royal order does not apply to land purchases or self-construction.