In brief
Imposes a 5% tax on real estate transactions whatever the property's condition or use, and sets exempt transactions, when the tax falls due and is paid, and penalties for late payment and evasion.
Summary of the law
Key points
- The tax is 5% of the transaction, whatever the property's condition, form or use at the time.
- Late payment: 2% of the unpaid tax per month or part of a month, capped at 50%; evasion: up to three times the evaded tax (Article 15).
Practical tip
- Agree in writing who bears the tax, check exemptions before notarisation, and note that notaries have their own duties with penalties.
A plain-language summary prepared by Al-Bayan Al-Wadih Law Firm, focused on the violations and problems that come up most in daily life. It is not a substitute for the official text or for legal advice.
What it covers
- Tax rate
- Exempt transactions
- When due and payment
- Penalties
Timeline
- Issued: Royal Decree M/84 · 19/3/1446H
Full record of amendments and regulations at the official source
Official text at the Bureau of Experts
The authoritative text is in Arabic; the Bureau of Experts publishes English translations for some laws.
Full official text
The full official text is in Arabic and is reproduced on the Arabic version of this page, as published by the Bureau of Experts at the Council of Ministers. Read the full Arabic text
Library content is simplified general information for awareness only. It is not legal advice and does not replace the official text. Laws change: always check the official source and consult a lawyer before acting. Library data last reviewed: .