News Update

Saudi Arabia: Real Estate Transaction Tax - A new tax introduced

Date: 02 Oct, 2020

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External URL: https://gulfnews.com/world/gulf/saudi/saudi-arabia-exempts-property-deals-from-15-vat-new-tax-set-at-5-1.1601599182457

Riyadh- October 2, 2020: Saudi Arabia will exempt real estate transactions from a 15 per cent VAT (value-added tax) and instead impose a new 5 per cent tax on property deals. The Saudi finance minister affirmed that the order aimed to support Saudi citizens who want to buy homes.

The country is facing a deep recession, with the economy shrinking by 7 per cent in the second quarter and unemployment hitting a record high of 15.4 per cent. The government had in July tripled VAT to 15 per cent to boost non-oil revenues, but the move set off limited domestic demand.

The official announcement can be accessed through the following link:

https://www.uqn.gov.sa