Saudi Arabia’s bold reform of its Real Estate Transaction Tax (RETT) is turning heads globally, particularly among Indian real estate developers keen on international expansion. With a flat 5% RETT now replacing the earlier 15% Value-Added Tax (VAT) on most property transactions, the new structure is aimed at making property investment more accessible and attractive—not just for Saudi citizens, but also for foreign investors.
A game-changing tax reform that encourages both local ownership and global participation
This reform is more than a tax adjustment—it represents a strategic shift towards economic diversification under the Kingdom’s Vision 2030 plan. In addition to lowering the transaction cost, the government has introduced several exemptions, including those for first-time Saudi homebuyers and for property transfers within families. These steps are designed to encourage local home ownership while also boosting confidence among global institutional investors.
A key draw for Indian developers is the increased transparency and regulatory clarity the reforms bring. By introducing better compliance mechanisms and clearly defined tax guidelines, the Saudi government is ensuring a more stable investment environment. This is particularly appealing for Indian firms engaged in large-scale infrastructure and real estate projects, such as Build-Operate-Transfer (BOOT) models.
Why Indian developers are paying close attention to Saudi Arabia’s real estate landscape?
Saudi Arabia is also making it easier for foreign developers to participate in its real estate boom by expanding freehold rights to non-Saudis, fast-tracking land availability, and aggressively promoting the development of affordable housing and mixed-use infrastructure. These initiatives align closely with India’s own real estate growth experience, giving Indian developers a strategic advantage in understanding and catering to the market.
With Riyadh rapidly evolving into a key regional economic hub, the demand for housing, hospitality, and commercial infrastructure is surging. Indian realtors are now entering into joint ventures with Saudi counterparts to co-develop premium residences, smart cities, and commercial assets.
For Indian developers, this is a window of opportunity that offers tax efficiency, ease of doing business, and access to a high-growth market. The RETT reforms thus serve not just as a policy update, but as a signal that Saudi Arabia is open for global business—and Indian real estate players are among the early movers ready to capitalize.
In essence, these sweeping reforms are laying the groundwork for a new era of international real estate collaboration, with India poised to play a leading role in Saudi Arabia’s urban transformation.
Comments
Saudi Arabia’s game-changing tax reform is drawing global attention and Indian realtors are diving in headfirst. The Kingdom recently cut its Real Estate Transaction Tax (RETT) from 15% to just 5%, while introducing key exemptions and widening freehold rights for foreign investors. This bold move, aligned with Saudi Vision 2030, is turning the country into a real estate hotspot.
With a surge in demand for smart cities, residential projects, and luxury hospitality, Indian developers see a golden opportunity to expand. Major players are already partnering with Saudi firms to shape next-gen urban hubs. For Indian realtors, it’s more than a policy shift. It’s sort of a gateway to co-develop a future-ready Middle East.
As Saudi Arabia opens its doors wider, Indian real estate / development companies are ready to answer the call bringing innovation, scale, and experience to one of the world’s most ambitious transformation stories.
Pratyush Pandey, CEO, Upflex India.
“Millionaires are increasingly migrating from India to Dubai due to a combination of factors, including favourable tax policies, a robust business environment, and the allure of a cosmopolitan lifestyle. Dubai offers a strategic location for global business, a safe and secure environment, and a vibrant community that appeals to those seeking new opportunities and a higher quality of life. This trend reflects a broader search for economic stability and personal freedom in an increasingly interconnected world.”
Chintan Vasani, Partner – Wisebiz Developers
“Indian millionaires are heading to Dubai for low taxes, safety, and global access—a lifestyle and business upgrade rolled into one.”
