Zakat authority clarifies real estate tax refund processing times

The Zakat, Tax and Customs Authority has stated that requests to refund real estate transaction tax will be reviewed within 15 working days from the date of cancellation of a paid request before property transfer.

The authority explained that refunded amounts will be returned within 10 working days from the date the refund request is approved.

According to the Real Estate Transaction Tax Law, the purchase and sale of land are subject to a 5% real estate transaction tax. The state covers the 5% tax on up to 1,000,000 riyals (SAR) of the purchase price for a citizen’s first home (ready-to-move-in only). This royal order does not apply to land purchases or self-construction.

The authority previously clarified that inheritance distribution is exempt from real estate transaction tax when the property is divided among heirs, provided a certified inheritance division decision is attached. The legal representative must register the property, select 'heirs’ representative' as the applicant type, and enter the ID type and number of one of the parties to the agency, as well as the agency number.