What Is Meant By The Term "Real Estate Transaction"?
Any legal transfer of ownership of real estate or its possession for the purpose of owning it or owning its benefit, including and without limitation contracts that are subject to the transfer of the right of usufruct or the right of a long-term lease, including; Sale, trade-off, gift, will, barter, lease, financial lease, transfer of stakes in real estate companies, or a usufruct right for a period of more than fifty years.
When Did The Real Estate Transaction Tax Start?
Since Sunday, October 4, 2020, work has been started according to the decision.
When Is This Tax Due?
Disclosure and payment of tax shall be made before or with the act of documenting with a notary public or accredited notary.
How Much Is The Real Estate Transaction Tax Rate?
The percentage was reduced to 5% according to the royal order dated 14/2/1442.
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Dividing or distributing the estate.
Donating to a family endowment, charitable organization, or licensed association.
Acting for the benefit of a government agency, public legal persons, or public benefit projects.
Disposing of like expropriation for public purposes.
Trust for the husband or wife or the second degree in the second degree.
Disposing of the property as a guarantee of what is being executed
What Are The Conditions For Tax Exempt When Buying Real Estate?
- To be the first residence of the citizen.
- The value does not exceed one million riyals.
Is There A Tax On Residential Rent?
Residential rent is exempt from VAT
Is Commercial Rent Included In The 15% Value Added Tax?
Yes, it is covered by value-added tax if the property owner is subject to the value-added tax system (revenues of 375,000 riyals and more annually).
