24 Hrs
Source:
الوئام
First-time land purchase tax exemptions Explained
The Zakat, Tax and Customs Authority clarifies that the real estate transfer tax on land sale and purchase transactions in the Kingdom is set at a rate of 5%. This includes lands that are being traded, whether for the first time or otherwise. However, the government does not cover the payment of this tax when acquiring land for construction or self-construction purposes. Instead, the government's support is limited to the first ready-to-occupy home, provided that its value does not exceed one million riyals. If the value of the first home is less than or equal to one million riyals, the government bears the tax up to that limit; any amount above this remains the responsibility of the buyer. The Authority emphasizes that tax exemption applies only to ready-to-occupy homes and not to land purchases or self-construction, so citizens must be aware of their tax obligations depending on the type of property and its intended use.
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