Who is responsible for paying real estate brokerage fees?

The commission is paid by the party that contracted the licensed broker, unless otherwise agreed and documented in the official electronic brokerage contract.

How does the First-Time Homebuyer RETT exemption work?

The Saudi Government bears the 5% Real Estate Transaction Tax (RETT) for citizens purchasing their first primary residence up to a property value of SAR 1,000,000. Any excess amount above SAR 1M is taxed at 5%.

Saudi ArabiaUpdated for 2026Real Estate

Saudi Real Estate Brokerage Commission & RETT Calculator 2026

Calculate certified real estate brokerage commission (capped at 2.5% by REGA), 15% VAT on commission, 5% Real Estate Transaction Tax (RETT), and Saudi first-time homebuyer tax exemption up to SAR 1,000,000.

Real Estate & Property Property Taxes & Fees Value Added Tax (VAT)Government & Business Fees

Calculated Result

Total Brokerage Commission (Incl. 15% VAT)

34,500

Calculator Inputs

Property Deal / Transaction Value (SAR)

SAR

Quick select:

Agreed Brokerage Rate (%)2.5 %

0.5 %2.5 %

Statutory legal ceiling mandated by REGA is 2.5%.

First-Time Citizen Homebuyer (RETT Exemption up to SAR 1M)

Calculated Result

Total Brokerage Commission (Incl. 15% VAT)

34,500

Real Estate Transaction Tax (RETT 5%)

60,000

Total Closing & Transaction Costs

94,500

Net Brokerage Commission

30,000

15% VAT on Commission

4,500

Grand Total Cash Required for Purchase

1,294,500

Property Acquisition & Closing Breakdown

Calculation Methodology

Total Brokerage = Property Deal Value × Commission % (Max 2.5%) + 15% VAT on Commission + 5% RETT Tax.

Financial & Statutory Disclaimer

Under the Real Estate Brokerage Law, commission is legally capped at 2.5% unless agreed lower in writing via certified REGA brokerage contracts.

This calculator is designed for educational and informational purposes based on publicly declared statutory frameworks. The outputs do not constitute binding financial, tax, or legal advice. We assume no liability for decisions made based on these estimates. Always verify with the relevant official authorities or a certified professional advisor.

Frequently Asked Questions

The Real Estate General Authority (REGA) caps brokerage commissions at a maximum of 2.5% of the total sale price for sales transactions, or 2.5% of the first year's rent for lease agreements, subject to 15% VAT.

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Saudi Arabia

Saudi Real Estate Brokerage Commission & RETT Calculator 2026

Calculator Inputs

Property Acquisition & Closing Breakdown

Calculation Methodology

Financial & Statutory Disclaimer

Frequently Asked Questions

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