Real Estate Tax Affidavit Template for Saudi Arabia

A Real Estate Tax Affidavit is a critical legal document you must file when completing property transactions in Saudi Arabia. Since the implementation of the Real Estate Transaction Tax (RETT) in October 2020, this affidavit has become mandatory for most real estate dealings, replacing the previous VAT system and ensuring proper tax compliance with the Zakat, Tax and Customs Authority (ZATCA).

When do you need this document?

You need a Real Estate Tax Affidavit whenever you're involved in a real estate transaction subject to RETT in Saudi Arabia. This includes purchasing residential or commercial properties, transferring property ownership between family members, acquiring property through inheritance, or engaging in corporate real estate transactions. The affidavit is required regardless of whether you're a Saudi national, expatriate resident, or foreign investor. You must submit this document to ZATCA within the specified timeframe following your transaction completion, typically within 30 days of the property transfer.

Key legal considerations

Your Real Estate Tax Affidavit must include comprehensive declarant information, including your full legal name, national ID or Iqama number, and contact details. You must provide detailed property information such as the exact address, title deed number, plot number, and property type classification. Transaction details are equally crucial, requiring disclosure of the actual sale price, transaction date, and transaction type. The tax declaration section demands precise calculation and declaration of the RETT amount, which is typically 5% of the property value. False or inaccurate declarations can result in severe penalties, including fines and potential legal action under Saudi tax law. You must ensure all information aligns with supporting documents such as sale agreements, property valuations, and title deeds.

Legal requirements in Saudi Arabia

Under Royal Decree No. A/84 of 2020 and ZATCA implementation regulations, your Real Estate Tax Affidavit must comply with specific Saudi Arabian requirements. The document must be completed in Arabic or include certified Arabic translations if originally prepared in another language. You must submit the affidavit through ZATCA's electronic systems or approved channels, following their prescribed format and procedures. The affidavit must be accompanied by supporting documentation including copies of title deeds, sale agreements, property valuations, and identification documents. Sharia law principles also apply to property transactions, requiring compliance with Islamic legal principles regarding property ownership and transfer validity. Anti-money laundering regulations mandate proper verification of all parties' identities and transaction sources. You must maintain records of your Real Estate Tax Affidavit and related documents for the statutory period as required by Saudi tax law, typically five years from the transaction date.