RETT on Transfers in Real Estate Companies: The 30% Threshold Explained | Dariba.co<\/title>\n<meta name=\"description\" content=\"A complete guide to RETT on share and interest transfers in Saudi real estate companies \u2014 the 50% asset test, the 30% disposal threshold, three-year aggregation, and how RETT is calculated.\">\n<link rel=\"preconnect\" href=\"https:\/\/fonts.googleapis.com\">\n<link href=\"https:\/\/fonts.googleapis.com\/css2?family=DM+Sans:wght@400;500;600;700;800&display=swap\" rel=\"stylesheet\">\n<style>:root{--green:#059669;--green-light:#d1fae5;--green-dim:#ecfdf5;--green-border:#6ee7b7;--amber:#d97706;--amber-light:#fffbeb;--amber-border:#fcd34d;--blue:#2563eb;--blue-light:#eff6ff;--blue-border:#93c5fd;--red:#dc2626;--text-primary:#111827;--text-muted:#6b7280;--text-light:#9ca3af;--border:#e5e7eb;--surface:#f9fafb;--surface-2:#f3f4f6;--radius:8px;--radius-lg:12px}.dariba-article{font-family:'DM Sans',-apple-system,BlinkMacSystemFont,'Segoe 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.also-title{font-size:0.875rem;font-weight:600;color:var(--text-primary);line-height:1.4}.dariba-article .disclaimer{font-size:0.78rem;color:var(--text-muted);border-top:1px solid var(--border);padding-top:1rem;margin-top:2.5rem;font-style:italic;line-height:1.6}<\/style>\n<\/head>\n<body>\n<div class=\"dariba-article\">\n\n<div class=\"article-meta\">\n <span>Taxable Events<\/span>\n<\/div>\n\n\n<div class=\"series-banner\">\n Part of <a href=\"https:\/\/www.dariba.co\/rett-saudi-arabia\/\">RETT in Saudi Arabia: The Complete Guide<\/a> \u2014 Cluster 2: Taxable Events \u00b7 Article 2.5\n<\/div>\n\n<div class=\"section-block\" id=\"why-matters\">\n <div class=\"section-number\">\n <span class=\"section-num-badge\">01<\/span>\n <h2>Why This Matters for Deal-Makers and Investors<\/h2>\n <\/div>\n <p>The ability to sell a company rather than directly sell the underlying property is a well-known structuring consideration in real estate. In Saudi Arabia, the RETT Law closes this avenue for significant disposals of real-estate-heavy entities. Under the look-through regime established by Article 2 of the Implementing Regulations, transferring shares or interests in a Real Estate Company can be a taxable RETT event \u2014 assessed not on the share value, but on the underlying real estate.<\/p>\n <p>This is commercially material. A company holding SAR 100 million in Saudi real estate and SAR 20 million in cash would be a Real Estate Company. A disposal of 35% of its shares would trigger RETT of SAR 5,250,000 (5% \u00d7 SAR 100 million \u00d7 35%). M&A advisors, PE fund managers, family offices, and legal counsel structuring Saudi real estate transactions must build this analysis in at the outset of any deal.<\/p>\n<\/div>\n\n<div class=\"section-block\" id=\"two-tests\">\n <div class=\"section-number\">\n <span class=\"section-num-badge\">02<\/span>\n <h2>The Two-Part Test: Step One \u2014 Is It a Real Estate Company?<\/h2>\n <\/div>\n <p>The first question is whether the entity in question qualifies as a “Real Estate Company” for RETT purposes. The definition applies to any company, fund, or entity (regardless of its legal form or stated purpose) that:<\/p>\n <ul class=\"article-list\">\n <li>Directly or indirectly owns real estate situated in the Kingdom of Saudi Arabia<\/li>\n <li>With the aim of generating revenue from that real estate by selling or leasing it<\/li>\n <li>Where the total fair market value of such real estate is <strong>not less than 50%<\/strong> of the total fair market value of the entity’s assets \u2014 assessed on the date of the interest transfer, or at any time during the <strong>365 days preceding<\/strong> that date<\/li>\n <\/ul>\n <p>The 365-day lookback is intentional anti-avoidance. A company cannot temporarily shift its asset mix below the 50% threshold immediately before a planned disposal and then revert. If the threshold was crossed at any point in the preceding year, the entity qualifies as a Real Estate Company for that transaction.<\/p>\n\n <div class=\"callout callout-info\">\n <div class=\"callout-label\">Indirect Ownership Counts<\/div>\n <p>The real estate asset test includes property owned indirectly through subsidiaries and sub-subsidiaries. If a holding company owns a subsidiary that owns Saudi real estate, the holding company’s proportionate interest in that real estate is included in its real estate asset calculation. Multi-layered structures do not avoid the look-through.<\/p>\n <\/div>\n<\/div>\n\n<div class=\"section-block\" id=\"30-percent\">\n <div class=\"section-number\">\n <span class=\"section-num-badge\">03<\/span>\n <h2>Step Two \u2014 Does the Disposal Reach 30%?<\/h2>\n <\/div>\n <p>Even if an entity qualifies as a Real Estate Company, not every share transfer triggers RETT. A taxable event arises when a person, or a group of persons acting in agreement, dispose of a total of <strong>30% or more<\/strong> of the company’s interests, through one or more related transactions, within any <strong>three-year rolling period<\/strong>.<\/p>\n <p>The three-year window starts from or after the date on which the cumulative holding of the person (or concert group) reaches 30% or more. Transfers below 30% that do not, in aggregate, push the cumulative disposal over the threshold in any three-year window are not taxable RETT events.<\/p>\n\n <div class=\"callout\">\n <div class=\"callout-label\">Worked Example \u2014 Staggered Disposals (from ZATCA Guideline)<\/div>\n <h4>Scenario<\/h4>\n <p>An investor holds interests in a Real Estate Company. He transfers: 10% in January 2023; 15% in June 2024; and 10% in June 2025. All three transfers fall within a rolling three-year window (January 2023 to June 2025 = 29 months).<\/p>\n <h4>RETT Analysis<\/h4>\n <p>At the June 2025 transfer, the cumulative disposal reaches 35%, crossing the 30% threshold. RETT becomes due on all three transfers as of June 2025. The tax is calculated on the FMV of the company’s real estate multiplied by 35% (the total transferred percentage).<\/p>\n <p>If the company holds SAR 80 million in real estate: RETT = SAR 80,000,000 \u00d7 35% \u00d7 5% = <strong>SAR 1,400,000<\/strong>. This must be paid within 30 days of the date the 30% threshold was crossed (the earlier of the date of the June 2025 transfer or the date of an unconditional agreement to transfer those shares).<\/p>\n <\/div>\n\n <p>The “concert” or “agreed disposal” concept extends the aggregation beyond a single person. Related persons are deemed to act in concert unless proven otherwise. If multiple shareholders coordinate their sales \u2014 even informally \u2014 their combined disposals are aggregated for the 30% threshold test.<\/p>\n<\/div>\n\n<div class=\"section-block\" id=\"tax-base\">\n <div class=\"section-number\">\n <span class=\"section-num-badge\">04<\/span>\n <h2>How RETT Is Calculated on a Share Transfer<\/h2>\n <\/div>\n <p>Once the two-part test is met, RETT is calculated on the fair market value of all real estate owned directly or indirectly by the company at the time of the transaction \u2014 multiplied by the percentage of interests transferred. If the value agreed between the parties and allocated to the real estate is higher than the FMV-based figure, RETT is assessed on that higher value.<\/p>\n\n <div class=\"table-wrap\">\n <table>\n <thead><tr><th>Variable<\/th><th>Details<\/th><\/tr><\/thead>\n <tbody>\n <tr><td>Tax base<\/td><td>FMV of all Saudi real estate owned by the company (directly + indirectly)<\/td><\/tr>\n <tr><td>Multiplier<\/td><td>Percentage of interests transferred (e.g. 35%)<\/td><\/tr>\n <tr><td>Rate<\/td><td>5%<\/td><\/tr>\n <tr><td>Assignor<\/td><td>The person(s) disposing of the shares \u2014 they bear the RETT<\/td><\/tr>\n <tr><td>Payment deadline<\/td><td>Within 30 days of the earlier of: (a) date of share transfer, or (b) date of unconditional agreement to transfer<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n<\/div>\n\n<div class=\"section-block\" id=\"listed-exempt\">\n <div class=\"section-number\">\n <span class=\"section-num-badge\">05<\/span>\n <h2>Listed Securities Exception<\/h2>\n <\/div>\n <p>The transfer of shares, interests, or units <strong>listed on a licensed Saudi capital market<\/strong> in a Real Estate Company is expressly exempt from RETT under Article 3 of the RETT Law and Implementing Regulations. This covers public offerings, secondary market trading, share buybacks by listed companies, and the trading of unlisted investment fund units \u2014 subject to one exception.<\/p>\n <p>For unlisted investment fund units: if a person or concert group disposes of 50% or more of the fund’s units in a three-year window, the exemption falls away and RETT applies. This is a higher threshold (50%, not 30%) that reflects the unique structure of unlisted real estate investment funds.<\/p>\n<\/div>\n\n<div class=\"section-block\" id=\"faq\">\n <div class=\"section-number\">\n <span class=\"section-num-badge\">06<\/span>\n <h2>Frequently Asked Questions<\/h2>\n <\/div>\n <div class=\"faq-list\">\n <div class=\"faq-item\">\n <button class=\"faq-q\">Our company holds a warehouse (SAR 30M) and a large cash balance (SAR 25M) and equipment (SAR 10M). Is it a Real Estate Company?<span class=\"faq-icon\">+<\/span><\/button>\n <div class=\"faq-a\">Total assets: SAR 65M. Real estate: SAR 30M = 46.2% of total. This is below the 50% threshold \u2014 so at this snapshot, it would not qualify. However, the 365-day lookback applies. If at any point in the preceding 12 months the real estate FMV was \u226550% of total assets (for example, if cash was lower), the company qualifies. A time-series asset valuation is needed to confirm the position.<\/div>\n <\/div>\n <div class=\"faq-item\">\n <button class=\"faq-q\">A private equity fund is buying 25% of a Saudi Real Estate Company. Does RETT apply?<span class=\"faq-icon\">+<\/span><\/button>\n <div class=\"faq-a\">A single acquisition of 25% does not by itself trigger RETT \u2014 the threshold is 30%. However, if the seller had prior disposals within the three-year window that, combined with this 25% transfer, exceed 30%, RETT applies on the aggregate. Additionally, if the PE fund plans further acquisitions, they need to track whether the cumulative total from date of first disposal reaches 30%.<\/div>\n <\/div>\n <div class=\"faq-item\">\n <button class=\"faq-q\">When exactly is the 30-day RETT payment deadline for a share transfer?<span class=\"faq-icon\">+<\/span><\/button>\n <div class=\"faq-a\">RETT must be paid within 30 days from the earlier of: (a) the date the shares are actually transferred, or (b) the date on which an unconditional agreement to transfer the shares is concluded. If the SPA is signed unconditionally on 1 January and completion occurs on 1 March, the 30-day clock starts from 1 January \u2014 not completion. This is particularly relevant for deals with a gap between signing and closing.<\/div>\n <\/div>\n <\/div>\n<\/div>\n\n<div class=\"takeaways\">\n <div class=\"takeaways-title\">◆ Key Takeaways<\/div>\n <ol>\n <li>Transferring shares in a Real Estate Company (\u226550% real estate by FMV, including a 365-day lookback) is treated as a real estate transaction for RETT purposes.<\/li>\n <li>A taxable event arises when a person or concert group disposes of 30%+ of the company’s interests within any three-year rolling period.<\/li>\n <li>The tax base is the FMV of all Saudi real estate owned by the company \u00d7 the percentage transferred \u00d7 5%.<\/li>\n <li>Payment is due within 30 days of the earlier of: the transfer date, or the date of the unconditional agreement to transfer.<\/li>\n <li>Listed securities on licensed Saudi exchanges are exempt. Unlisted fund unit transfers trigger RETT if 50%+ is disposed of in three years.<\/li>\n <li>Concert group aggregation means coordinated multi-party disposals must be tracked cumulatively \u2014 even if no single party individually reaches 30%.<\/li>\n <\/ol>\n<\/div>\n\n<div class=\"series-footer\">\n <p>RETT in Saudi Arabia \u2014 Cluster 2: Taxable Events<\/p>\n <h4>Continue with the full RETT knowledge library on dariba.co<\/h4>\n <a href=\"https:\/\/www.dariba.co\/rett-saudi-arabia\/\" class=\"btn-primary\">View all RETT articles \u2192<\/a>\n<\/div>\n\n<div class=\"also-reading\">\n <h4>Related Articles<\/h4>\n <div class=\"also-cards\">\n <a href=\"https:\/\/www.dariba.co\/what-triggers-rett\/\" class=\"also-card\"><div class=\"also-label\">RETT<\/div><div class=\"also-title\">What Transactions Trigger RETT? The Complete Guide<\/div><\/a>\n <a href=\"https:\/\/www.dariba.co\/rett-ma-transactions\/\" class=\"also-card\"><div class=\"also-label\">RETT<\/div><div class=\"also-title\">RETT in M&A Transactions Involving Saudi Real Property<\/div><\/a>\n <\/div>\n<\/div>\n\n<p class=\"disclaimer\">Grounded in the RETT Law (Royal Decree No. M\/84, effective 10 April 2025), Implementing Regulations (ZATCA Board Resolution No. 01-03-25, 24 March 2025), and ZATCA’s Detailed Guideline Version 6 (May 2026). For informational purposes only. dariba.co is an independent knowledge platform.<\/p>\n<\/div>\n<script>document.querySelectorAll('.dariba-article .faq-q').forEach(function(btn){btn.addEventListener('click',function(){btn.parentElement.classList.toggle('open');});});<\/script>\n<\/body>\n<\/html>\n\n","protected":false},"excerpt":{"rendered":"<p>RETT on Transfers in Real Estate Companies: The 30% Threshold Explained | Dariba.co Taxable Events Part of RETT in Saudi Arabia: The Complete Guide \u2014 Cluster 2: Taxable Events \u00b7 Article 2.5 01 Why This Matters for Deal-Makers and Investors The ability to sell a company rather than directly sell the underlying property is a […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":["post-516","post","type-post","status-publish","format-standard","hentry","category-rett"],"_links":{"self":[{"href":"https:\/\/www.dariba.co\/index.php?rest_route=\/wp\/v2\/posts\/516","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.dariba.co\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.dariba.co\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.dariba.co\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.dariba.co\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=516"}],"version-history":[{"count":0,"href":"https:\/\/www.dariba.co\/index.php?rest_route=\/wp\/v2\/posts\/516\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.dariba.co\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=516"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.dariba.co\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=516"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.dariba.co\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=516"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}

{"id":516,"date":"2026-06-06T10:10:40","date_gmt":"2026-06-06T10:10:40","guid":{"rendered":"https:\/\/www.dariba.co\/?p=516"},"modified":"2026-06-06T10:10:40","modified_gmt":"2026-06-06T10:10:40","slug":"rett-on-transfers-in-real-estate-companies","status":"publish","type":"post","link":"https:\/\/www.dariba.co\/?p=516","title":{"rendered":"RETT on Transfers in Real Estate Companies: The 30% Threshold Explained"},"content":{"rendered":"\n\n\n\n\n\nRETT on Transfers in Real Estate Companies: The 30% Threshold Explained | Dariba.co<\/title>\n<meta name=\"description\" content=\"A complete guide to RETT on share and interest transfers in Saudi real estate companies \u2014 the 50% asset test, the 30% disposal threshold, three-year aggregation, and how RETT is calculated.\">\n<link rel=\"preconnect\" href=\"https:\/\/fonts.googleapis.com\">\n<link href=\"https:\/\/fonts.googleapis.com\/css2?family=DM+Sans:wght@400;500;600;700;800&display=swap\" 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.series-footer h4{font-size:1rem;margin-bottom:1rem;color:var(--text-primary)}.dariba-article .btn-primary{display:inline-block;background:var(--green);color:#ffffff;font-weight:700;font-size:0.875rem;padding:0.65rem 1.5rem;border-radius:var(--radius);text-decoration:none;transition:opacity 0.2s}.dariba-article .btn-primary:hover{opacity:0.88;color:#ffffff}.dariba-article .also-reading{margin:2rem 0}.dariba-article .also-reading h4{font-size:0.72rem;font-weight:700;text-transform:uppercase;letter-spacing:0.08em;color:var(--text-muted);margin-bottom:1rem}.dariba-article .also-cards{display:grid;grid-template-columns:1fr 1fr;gap:0.875rem}@media(max-width:600px){.dariba-article .also-cards{grid-template-columns:1fr}}.dariba-article .also-card{background:var(--surface);border:1px solid var(--border);border-radius:var(--radius);padding:1rem;text-decoration:none;display:block;transition:border-color 0.2s,box-shadow 0.2s}.dariba-article .also-card:hover{border-color:var(--green);box-shadow:0 2px 8px rgba(5,150,105,0.08)}.dariba-article .also-card .also-label{font-size:0.68rem;font-weight:700;text-transform:uppercase;color:var(--green);letter-spacing:0.08em;margin-bottom:0.35rem}.dariba-article .also-card .also-title{font-size:0.875rem;font-weight:600;color:var(--text-primary);line-height:1.4}.dariba-article .disclaimer{font-size:0.78rem;color:var(--text-muted);border-top:1px solid var(--border);padding-top:1rem;margin-top:2.5rem;font-style:italic;line-height:1.6}<\/style>\n<\/head>\n<body>\n<div class=\"dariba-article\">\n\n<div class=\"article-meta\">\n <span>Taxable Events<\/span>\n<\/div>\n\n\n<div class=\"series-banner\">\n Part of <a href=\"https:\/\/www.dariba.co\/rett-saudi-arabia\/\">RETT in Saudi Arabia: The Complete Guide<\/a> \u2014 Cluster 2: Taxable Events \u00b7 Article 2.5\n<\/div>\n\n<div class=\"section-block\" id=\"why-matters\">\n <div class=\"section-number\">\n <span class=\"section-num-badge\">01<\/span>\n <h2>Why This Matters for Deal-Makers and Investors<\/h2>\n <\/div>\n <p>The ability to sell a company rather than directly sell the underlying property is a well-known structuring consideration in real estate. In Saudi Arabia, the RETT Law closes this avenue for significant disposals of real-estate-heavy entities. Under the look-through regime established by Article 2 of the Implementing Regulations, transferring shares or interests in a Real Estate Company can be a taxable RETT event \u2014 assessed not on the share value, but on the underlying real estate.<\/p>\n <p>This is commercially material. A company holding SAR 100 million in Saudi real estate and SAR 20 million in cash would be a Real Estate Company. A disposal of 35% of its shares would trigger RETT of SAR 5,250,000 (5% \u00d7 SAR 100 million \u00d7 35%). M&A advisors, PE fund managers, family offices, and legal counsel structuring Saudi real estate transactions must build this analysis in at the outset of any deal.<\/p>\n<\/div>\n\n<div class=\"section-block\" id=\"two-tests\">\n <div class=\"section-number\">\n <span class=\"section-num-badge\">02<\/span>\n <h2>The Two-Part Test: Step One \u2014 Is It a Real Estate Company?<\/h2>\n <\/div>\n <p>The first question is whether the entity in question qualifies as a “Real Estate Company” for RETT purposes. The definition applies to any company, fund, or entity (regardless of its legal form or stated purpose) that:<\/p>\n <ul class=\"article-list\">\n <li>Directly or indirectly owns real estate situated in the Kingdom of Saudi Arabia<\/li>\n <li>With the aim of generating revenue from that real estate by selling or leasing it<\/li>\n <li>Where the total fair market value of such real estate is <strong>not less than 50%<\/strong> of the total fair market value of the entity’s assets \u2014 assessed on the date of the interest transfer, or at any time during the <strong>365 days preceding<\/strong> that date<\/li>\n <\/ul>\n <p>The 365-day lookback is intentional anti-avoidance. A company cannot temporarily shift its asset mix below the 50% threshold immediately before a planned disposal and then revert. If the threshold was crossed at any point in the preceding year, the entity qualifies as a Real Estate Company for that transaction.<\/p>\n\n <div class=\"callout callout-info\">\n <div class=\"callout-label\">Indirect Ownership Counts<\/div>\n <p>The real estate asset test includes property owned indirectly through subsidiaries and sub-subsidiaries. If a holding company owns a subsidiary that owns Saudi real estate, the holding company’s proportionate interest in that real estate is included in its real estate asset calculation. Multi-layered structures do not avoid the look-through.<\/p>\n <\/div>\n<\/div>\n\n<div class=\"section-block\" id=\"30-percent\">\n <div class=\"section-number\">\n <span class=\"section-num-badge\">03<\/span>\n <h2>Step Two \u2014 Does the Disposal Reach 30%?<\/h2>\n <\/div>\n <p>Even if an entity qualifies as a Real Estate Company, not every share transfer triggers RETT. A taxable event arises when a person, or a group of persons acting in agreement, dispose of a total of <strong>30% or more<\/strong> of the company’s interests, through one or more related transactions, within any <strong>three-year rolling period<\/strong>.<\/p>\n <p>The three-year window starts from or after the date on which the cumulative holding of the person (or concert group) reaches 30% or more. Transfers below 30% that do not, in aggregate, push the cumulative disposal over the threshold in any three-year window are not taxable RETT events.<\/p>\n\n <div class=\"callout\">\n <div class=\"callout-label\">Worked Example \u2014 Staggered Disposals (from ZATCA Guideline)<\/div>\n <h4>Scenario<\/h4>\n <p>An investor holds interests in a Real Estate Company. He transfers: 10% in January 2023; 15% in June 2024; and 10% in June 2025. All three transfers fall within a rolling three-year window (January 2023 to June 2025 = 29 months).<\/p>\n <h4>RETT Analysis<\/h4>\n <p>At the June 2025 transfer, the cumulative disposal reaches 35%, crossing the 30% threshold. RETT becomes due on all three transfers as of June 2025. The tax is calculated on the FMV of the company’s real estate multiplied by 35% (the total transferred percentage).<\/p>\n <p>If the company holds SAR 80 million in real estate: RETT = SAR 80,000,000 \u00d7 35% \u00d7 5% = <strong>SAR 1,400,000<\/strong>. This must be paid within 30 days of the date the 30% threshold was crossed (the earlier of the date of the June 2025 transfer or the date of an unconditional agreement to transfer those shares).<\/p>\n <\/div>\n\n <p>The “concert” or “agreed disposal” concept extends the aggregation beyond a single person. Related persons are deemed to act in concert unless proven otherwise. If multiple shareholders coordinate their sales \u2014 even informally \u2014 their combined disposals are aggregated for the 30% threshold test.<\/p>\n<\/div>\n\n<div class=\"section-block\" id=\"tax-base\">\n <div class=\"section-number\">\n <span class=\"section-num-badge\">04<\/span>\n <h2>How RETT Is Calculated on a Share Transfer<\/h2>\n <\/div>\n <p>Once the two-part test is met, RETT is calculated on the fair market value of all real estate owned directly or indirectly by the company at the time of the transaction \u2014 multiplied by the percentage of interests transferred. If the value agreed between the parties and allocated to the real estate is higher than the FMV-based figure, RETT is assessed on that higher value.<\/p>\n\n <div class=\"table-wrap\">\n <table>\n <thead><tr><th>Variable<\/th><th>Details<\/th><\/tr><\/thead>\n <tbody>\n <tr><td>Tax base<\/td><td>FMV of all Saudi real estate owned by the company (directly + indirectly)<\/td><\/tr>\n <tr><td>Multiplier<\/td><td>Percentage of interests transferred (e.g. 35%)<\/td><\/tr>\n <tr><td>Rate<\/td><td>5%<\/td><\/tr>\n <tr><td>Assignor<\/td><td>The person(s) disposing of the shares \u2014 they bear the RETT<\/td><\/tr>\n <tr><td>Payment deadline<\/td><td>Within 30 days of the earlier of: (a) date of share transfer, or (b) date of unconditional agreement to transfer<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n<\/div>\n\n<div class=\"section-block\" id=\"listed-exempt\">\n <div class=\"section-number\">\n <span class=\"section-num-badge\">05<\/span>\n <h2>Listed Securities Exception<\/h2>\n <\/div>\n <p>The transfer of shares, interests, or units <strong>listed on a licensed Saudi capital market<\/strong> in a Real Estate Company is expressly exempt from RETT under Article 3 of the RETT Law and Implementing Regulations. This covers public offerings, secondary market trading, share buybacks by listed companies, and the trading of unlisted investment fund units \u2014 subject to one exception.<\/p>\n <p>For unlisted investment fund units: if a person or concert group disposes of 50% or more of the fund’s units in a three-year window, the exemption falls away and RETT applies. This is a higher threshold (50%, not 30%) that reflects the unique structure of unlisted real estate investment funds.<\/p>\n<\/div>\n\n<div class=\"section-block\" id=\"faq\">\n <div class=\"section-number\">\n <span class=\"section-num-badge\">06<\/span>\n <h2>Frequently Asked Questions<\/h2>\n <\/div>\n <div class=\"faq-list\">\n <div class=\"faq-item\">\n <button class=\"faq-q\">Our company holds a warehouse (SAR 30M) and a large cash balance (SAR 25M) and equipment (SAR 10M). Is it a Real Estate Company?<span class=\"faq-icon\">+<\/span><\/button>\n <div class=\"faq-a\">Total assets: SAR 65M. Real estate: SAR 30M = 46.2% of total. This is below the 50% threshold \u2014 so at this snapshot, it would not qualify. However, the 365-day lookback applies. If at any point in the preceding 12 months the real estate FMV was \u226550% of total assets (for example, if cash was lower), the company qualifies. A time-series asset valuation is needed to confirm the position.<\/div>\n <\/div>\n <div class=\"faq-item\">\n <button class=\"faq-q\">A private equity fund is buying 25% of a Saudi Real Estate Company. Does RETT apply?<span class=\"faq-icon\">+<\/span><\/button>\n <div class=\"faq-a\">A single acquisition of 25% does not by itself trigger RETT \u2014 the threshold is 30%. However, if the seller had prior disposals within the three-year window that, combined with this 25% transfer, exceed 30%, RETT applies on the aggregate. Additionally, if the PE fund plans further acquisitions, they need to track whether the cumulative total from date of first disposal reaches 30%.<\/div>\n <\/div>\n <div class=\"faq-item\">\n <button class=\"faq-q\">When exactly is the 30-day RETT payment deadline for a share transfer?<span class=\"faq-icon\">+<\/span><\/button>\n <div class=\"faq-a\">RETT must be paid within 30 days from the earlier of: (a) the date the shares are actually transferred, or (b) the date on which an unconditional agreement to transfer the shares is concluded. If the SPA is signed unconditionally on 1 January and completion occurs on 1 March, the 30-day clock starts from 1 January \u2014 not completion. This is particularly relevant for deals with a gap between signing and closing.<\/div>\n <\/div>\n <\/div>\n<\/div>\n\n<div class=\"takeaways\">\n <div class=\"takeaways-title\">◆ Key Takeaways<\/div>\n <ol>\n <li>Transferring shares in a Real Estate Company (\u226550% real estate by FMV, including a 365-day lookback) is treated as a real estate transaction for RETT purposes.<\/li>\n <li>A taxable event arises when a person or concert group disposes of 30%+ of the company’s interests within any three-year rolling period.<\/li>\n <li>The tax base is the FMV of all Saudi real estate owned by the company \u00d7 the percentage transferred \u00d7 5%.<\/li>\n <li>Payment is due within 30 days of the earlier of: the transfer date, or the date of the unconditional agreement to transfer.<\/li>\n <li>Listed securities on licensed Saudi exchanges are exempt. Unlisted fund unit transfers trigger RETT if 50%+ is disposed of in three years.<\/li>\n <li>Concert group aggregation means coordinated multi-party disposals must be tracked cumulatively \u2014 even if no single party individually reaches 30%.<\/li>\n <\/ol>\n<\/div>\n\n<div class=\"series-footer\">\n <p>RETT in Saudi Arabia \u2014 Cluster 2: Taxable Events<\/p>\n <h4>Continue with the full RETT knowledge library on dariba.co<\/h4>\n <a href=\"https:\/\/www.dariba.co\/rett-saudi-arabia\/\" class=\"btn-primary\">View all RETT articles \u2192<\/a>\n<\/div>\n\n<div class=\"also-reading\">\n <h4>Related Articles<\/h4>\n <div class=\"also-cards\">\n <a href=\"https:\/\/www.dariba.co\/what-triggers-rett\/\" class=\"also-card\"><div class=\"also-label\">RETT<\/div><div class=\"also-title\">What Transactions Trigger RETT? The Complete Guide<\/div><\/a>\n <a href=\"https:\/\/www.dariba.co\/rett-ma-transactions\/\" class=\"also-card\"><div class=\"also-label\">RETT<\/div><div class=\"also-title\">RETT in M&A Transactions Involving Saudi Real Property<\/div><\/a>\n <\/div>\n<\/div>\n\n<p class=\"disclaimer\">Grounded in the RETT Law (Royal Decree No. M\/84, effective 10 April 2025), Implementing Regulations (ZATCA Board Resolution No. 01-03-25, 24 March 2025), and ZATCA’s Detailed Guideline Version 6 (May 2026). For informational purposes only. dariba.co is an independent knowledge platform.<\/p>\n<\/div>\n<script>document.querySelectorAll('.dariba-article .faq-q').forEach(function(btn){btn.addEventListener('click',function(){btn.parentElement.classList.toggle('open');});});<\/script>\n<\/body>\n<\/html>\n\n","protected":false},"excerpt":{"rendered":"<p>RETT on Transfers in Real Estate Companies: The 30% Threshold Explained | Dariba.co Taxable Events Part of RETT in Saudi Arabia: The Complete Guide \u2014 Cluster 2: Taxable Events \u00b7 Article 2.5 01 Why This Matters for Deal-Makers and Investors The ability to sell a company rather than directly sell the underlying property is a […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":["post-516","post","type-post","status-publish","format-standard","hentry","category-rett"],"_links":{"self":[{"href":"https:\/\/www.dariba.co\/index.php?rest_route=\/wp\/v2\/posts\/516","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.dariba.co\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.dariba.co\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.dariba.co\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.dariba.co\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=516"}],"version-history":[{"count":0,"href":"https:\/\/www.dariba.co\/index.php?rest_route=\/wp\/v2\/posts\/516\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.dariba.co\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=516"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.dariba.co\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=516"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.dariba.co\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=516"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}