False Real Estate Information Could Draw a Fine of Up to SR50,000

Providing false information in a real estate transaction could lead to a fine of up to SR50,000 under a draft regulation proposed in Saudi Arabia.

The Zakat, Tax and Customs Authority invited the public to comment on Article 15, Paragraph 3 of the draft “Classification of Violations and Penalties for Real Estate Transaction Tax” law through the Istitlaa public survey platform. The consultation runs from September 3 to October 3.

The draft says anyone violating the law or its regulations would face a fine not exceeding the value of the tax due or SR50,000, whichever is greater.

The authority said the regulation would classify violations and penalties linked to real estate transaction tax. It said the measure would improve governance, standardize enforcement procedures and strengthen clarity and transparency for parties involved in real estate transactions.