Saudi Arabia’s’ King has approved the introduction of a new property deal tax. They issued a Royal Order to this effect and the tax will be levied at 5%. The Government will pay the costs of the new Real Estate Transaction Tax up to one million Riyals for Saudi citizens buying their first home. Property deals will also be exempt from VAT according to the Royal Order. It is part of the Kingdom’s response to the adverse economic effects of Coronavirus but is also aimed at encouraging Saudi citizens to own their own homes and supporting the residential and commercial property sector.