First-home tax

First home? The tax is on the state

If this is your first home, the state fully covers the 5% real-estate transaction tax on up to 1M ﷼ of the property value.

The real-estate transaction tax is 5% of any transferred property's value. But for a Saudi citizen buying their first home, the state covers it in full on up to 1M ﷼ of the value.

Example: a 900,000 ﷼ property saves you about 45,000 ﷼ in tax. Anything above 1M is charged only on the excess.

The core condition: you're a citizen and it's genuinely your first owned home. It's applied automatically through the ZATCA portal at transfer.

Source: Zakat, Tax and Customs Authority (ZATCA).

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