First-home tax relief and Sakani support for Saudi citizens

Two kinds of help for Saudi citizens buying their first home: the state pays part of the 5% real estate transaction tax, and the Sakani housing support programme subsidises the finance and the down payment.

For a Saudi citizen's first home the state pays the transaction tax on the first SAR 1,000,000 of the price — at most SAR 50,000. Under the Housing Support Regulation the support instalment is set at 33% of income, over at most 25 years.

Not a valid document. Estimate for information only — not financial advice, not an offer of credit and not a bank document. Errors are possible. Only your bank's or finance company's official offer letter, contract and statements are binding.

The 5% transaction tax and first-home relief

• Every property sale carries a 5% real estate transaction tax. By law the seller owes it; buyer and seller may agree who carries it in the price.
• For a citizen's first home the state pays the tax on the first SAR 1,000,000 of the price (at most SAR 50,000); above that, 5% applies to the rest.
• Example: on a SAR 1,500,000 first home where the deal puts the tax on the buyer, the tax is SAR 75,000, the state pays SAR 50,000 and the buyer SAR 25,000.

Sakani housing support

• Citizens only: state housing support is for Saudi citizens.
• Instalment: the Housing Support Regulation sets the support instalment at 33% of the applicant's income; a second ministry document says 25%.
• Term and age: at most 25 years, repaid by age 65.
• Profit subsidy: paid for at most 20 years; in the later years the buyer pays the profit.
• Down-payment support: eligible first-home buyers can get a non-refundable SAR 100,000 or 150,000, depending on net income.
• With Ministry of Housing / REDF support, all your credit payments may take up to 65% of income in the lowest income band.

Work it out: costs of buying a home (first-home relief) · home finance calculator (Sakani mode).